UK retailer Bensons for Beds has been rescued from the administration of its parent company Blue Group, as turnaround private equity firm Alteri Investors agreed a pre-pack administration deal that will save nearly 1,900 jobs.

Blue Group, which also owns furniture retailer Harveys, appointed administrators on 30 June, and will be broken up in a financial restructuring. Blue Group has annual revenues in excess of £600m and operates from 262 retail stores, four manufacturing sites and a network of distribution centres.