A rescue deal has been done to save Axminster Carpets from collapse.
A consortium, including Centric Commercial Finance Ltd and led by private investor Stephen Boyd, has taken over the business from administrators.
The company confirmed that the remaining 100 employees at Axminster will keep their jobs. The two outlet stores are also secure and have been transferred to the new company.
The Devon firm went into administration in March, leading to the loss of three hundred jobs.
The newly formed business, now called "Axminster Carpets (2013) Ltd" will involve many of the senior management team and will begin trading on Monday 8th April 2013.
Hundreds of workers at Axminster Carpets have today been coming to terms with the fact they've lost their jobs. Administrators announced yesterday that three quarters of the workforce were being made redundant.
Production continued today at the Axminster factory, but the yarn spinning mill at Buckfast has shut down completely. This morning workers met up for a meeting outside the locked gates. Our Business Correspondent Seth Conway reports.
Axminster Carpets workers have been paid this morning for the first time in two weeks.
The company entered administration yesterday and announced it was making 300 staff redundant. Those workers will have to apply to the government for redundancy money.
Administrators will keep just 100 staff after deciding to downscale the company's carpet manufacturing operations at Axminster and Buckfast. It will also end yarn production but two factory outlet stores will remain open.
The company, which dates back 250 years, blamed a sharp increase in raw material prices and the UK's continuing economic difficulties for the decision to go into administration.
It is one of Devon's biggest employers and its plight prompted more than 6,000 people to sign a petition calling for it to be saved.
An announcement on the future of Axminister Carpets is expected to be made later this afternoon. Union officials are currently on their way to the factory.
More than 300 jobs could be lost, as part of a deal aimed at saving the firm.