The deal was backed by existing lenders Lloyds and Allied Irish Bank.

The deal comes shortly after private equity group Change Capital Partners (CCP) was unable to agree terms with Lloyds over the company’s debt position, valued at some £30 million. CCP acquired the company for £65 million in 2004.

Round said: “We have an exceptional team in place and are well positioned to take advantage of opportunities that are emerging across the retail sector. Our banks have been extremely supportive throughout this process, as have our suppliers, and the management team is excited about taking Robert Dyas forward in its next stage of development.”

Robert Dyas employs some 1,250 people and operates from 99 stores across the country.