DFS has struck a partnership with furniture brand Dwell that involves the sofa giant providing financial support to the retailer.

DFS said it will provide “modest financial support” to Dwell, which is in the midst of a turnaround after collapsing into administration in July before being acquired by its founder Aamir Ahmad.

The deal with Dwell follows DFS’s partnership with Sofa Workshop in October.

DFS said it hopes to help Dwell “reach its full potential” through its strategy of refocusing on its core strengths and “building a robust platform for future profitable growth through five urban stores and a highly effective website”.

The two retailers will continue to be run by separate management teams under separate ownership.

DFS chief executive Ian Filby said: “We believe Dwell is a strong furniture brand with a unique proposition and growth potential, which complements the DFS brand and product offering.

“This partnership builds on our successful relationship with Sofa Workshop and our exclusive brand partnerships with French Connection, Country Living, and House Beautiful, all of which assist in strengthening DFS’s appeal and broadening our reach to consumers.”

Ahmad said: “We’re delighted with the interest that DFS has shown in Dwell and the recognition that we can take this brand from strength to strength. The partnership provides us with additional financial support, which is very valuable to the business as we build the brand.”

It is not known what level of investment DFS has taken in Dwell.