Sofa specialist DFS said yesterday it had bought Dwell, the furniture group that was on the brink of collapse last year.
DFS chief executive Ian Filby said Dwell was a “contemporary” brand and would help the retailer attract “younger, more urban consumers” it has not traditionally targeted.
The acquisition comes after DFS signed a deal with Dwell in February, agreeing to provide “modest financial support”.
Dwell was forced to cease trading last year when tough trading conditions and widening losses meant it was unable to pay suppliers or fulfil customer orders.
The Dwell brand and a handful of stores were rescued out of administration by its founder Aamir Ahmad, who set up the business in 2003 but left in 2012.
DFS said the two businesses would continue to be run by separate management teams, with the new ownership creating “mutually beneficial opportunities” for both.
The pair did not disclose the size of the deal or whether Ahmad would be keeping a stake in the company.