A provider of electrical products and household goods has been bought by two of its directors in a £22 million deal that has saved the business from insolvency.

Homebuy, which also provides cash loans, has been bought by its managing director and head of finance in a deal project managed by corporate finance adviser Orbis Partners.

Phil Goad and Steven Banks bought the West Midlands-based business after private equity fund Endless LLP and Landsbanki Commercial Finance agreed to back the deal.

Homebuy was put into administration in September following bad debts and rising costs and recommenced trading immediately following completion.

The Walsall-based company has a national distribution centre in Manchester and service depots in Belfast, Chester Le Street, Dundee, Glasgow, Rotherham, Sevenoaks and Wigan. The company was established in 2003 and joined AIM the following year.