Plus-size womenswear retailer Elvi is back in business after mystery investors bought it out of administration.

The deal, completed at the end of last week, will secure approximately 500 jobs and Elvi will retain its existing structure and management.

Elvi was forced into administration earlier this month after suffering two seasons of difficult trading.

The terms of the deal and identities of Elvi's new backers were not disclosed. However, a source close to the situation said one was “a successful retailer”.

Elvi managing director Oliver Spark, who led a£10 million buy-out of Elvi in October 2006, said product range issues had been addressed and the retailer had a future.

Spark said: “The investors believe that Elvi is a strong brand and we’ll build it up.”

Elvi has 28 shops and 63 concessions in stores including Debenhams, House of Fraser and John Lewis and launched a web site late last year.

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