Aamir Ahmad, founder of the Dwell Retail Limited stores, has bought the company out of administration.
The sale will see 150 jobs saved at the insolvent furniture retailer, which entered administration last month.
John Whitfield, joint administrator for Duff & Phelps, said: “We have been able to conclude an agreement that results in not only the continuation of the brand, but saves many of the employees’ roles as well as securing the best outcome for suppliers.
“The new management will now be in the position to work with customers to try and identify the best solution for everyone concerned.”
Ahmad founded Dwell with family and friends in 2003 but stood down in November 2012. Duff & Phelps secured the sale with Ahmad due to retake control of the company.
Several Dwell outlets will re-open on 6 July 2013, including Tottenham Court Road, the two London Westfield sites, the Lakeside site, and Barton Square in Manchester.
Dwell was established in 2002 and losses for the three years to January 2012 were £5.6 million.
The company entered administration on 25 June, putting 300 jobs and an estimated £1m of customer deposits at risk.
When Dwell entered administration, it warned that no further deliveries will be made. It advised customers with outstanding orders to contact their card issuer. Ahmad has reportedly promised to try to help customers who have outstanding orders.