Collapsed furniture chain Dwell will remain on the high street after the brand and five stores were bought out of administration by its founder Aamir Ahmad.

The deal will save 150 jobs. Dwell said “at least five stores” will reopen on Saturday, out of the 23 open at the time of its collapse. Dwell will also reopen its online store on Saturday.

Dwell will reopen stores on Tottenham Court Road, Westfield White City, Westfield Stratford, Barton Square in Manchester and Lakeside in Thurrock.

The retailer said that talks with other landlords are under way “with a hope that additional stores and jobs can be saved”.

Ahmad, who founded dwell in 2003 before exiting last year, will assume the position of chief executive at the newly formed company.

Ahmad said: “Our priority lies with the customers and suppliers who have been let down by the former management. We are working hard to try and resolve the issues, in particular outstanding customer orders. 

“Although we are not legally obliged to, we are doing everything we can to find a solution for customers who have lost out.  Our primary goal is to help customer and suppliers regain their trust in the dwell brand.”

John Whitfield, Dwell’s joint administrator at Duff & Phelps,said: “We are delighted to 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.”