Bensons for Beds, which operates 243 shops, has been bought in a pre-pack administration deal by turnaround firm Alteri Investors, saving nearly 2,000 jobs.

Alteri will invest £25m of fresh funding into the retailer to revive its fortunes, but plans to close one of its manufacturing sites and may downsize its store estate depending on what rent deals it can secure.

Sister retailer Harveys is not included in Alteri’s pre-pack deal for Bensons and will operate in administration while a buyer for the business is sought, with PWC acting as administrators.