Sharps Bedrooms has been sold back to Homeform Group owner Sun European Partners, after Homeform appointed administrators Deloitte yesterday.
A statement from Deloitte said the company, which trades under the brands Moben Kitchens, Dolphin Bathrooms, Sharps Bedrooms and Kitchens Direct, had "experienced significant difficulties due to the current economic climate, particularly in the kitchen and bathrooms market".
Homeform's other operations have been closed down, with the loss of 557 staff, although the administrators continue to market the brands for sale. 24 employees have been kept on while matters are finalised.
Homeform owner Sun European Partners has bought back Sharps Bedrooms through a new company, Sharps Bedrooms Limited, safeguarding 627 jobs and ensuring customers who have paid a deposit for a Sharps bedroom will have those deposits honoured.
Sharps managing director Kevin Smith said: "It is 100% 'business as usual' for Sharps. This is and always has been a successful and market-leading business and we look forward to developing it further to make Sharps even better."
As part of the transaction, 96 of Homeform's 160 showrooms and concessions have been licensed to Sharps Bedrooms Limited, and the new business will be headquartered from the Sharps factory at Bilston.
Joint administrator Phil Bowers said: "The business has suffered from the extreme pressures currently hitting retailers of high value items, as customers shy away from big ticket purchases such as kitchens and bathrooms... We are now in urgent discussions with the key stakeholders and interested parties of Moben, Dolphin and Kitchens Direct in an attempt to sell all or parts of the businesses. We have written to all the employees with briefings to help them understand their position."