Beds Direct has been bought out of administration by its management.
The new company will trade as Helibeds and operate from 20 sites as well as online.
After going into administration, Beds Direct had to close more than half of its 42 stores and make nine employees redundant.
PricewaterhouseCoopers, the administrator, said the retailer had “suffered from over expansion: it had 20 outlets, expanded to about 40 and launched an internet site”.
Beds Direct is the latest victim of the consumer downturn. Other retailers to have fallen into administration in recent weeks include Ilva, Floors-2-Go, General Trading Company and ScS.