Lancashire sofa and sofa bed maker Flame Upholstery has been bought by its bosses.

Preston-based flame, which turns over just less than £7m, and has 500 staff has been bought from parent company Tetrad by managing director Mike Featherstone and former Tetrad executive Janus Cooper.

Flame, which sells its products through independent stores and also manufactures own-label furniture for retailers including John Lewis and Furniture Village, also exports to more than 20 countries.

The undisclosed deal was backed by Royal Bank of Scotland. Keith Melling, corporate partner at the Preston office of law firm DWF advised the buyers.

The MBO was negotiated and structured by Craig Richardson of Preston- based Dow Schofield Watts.

Established almost 40 years ago, Tetrad was the pioneer of removable, machine-washable sofa covers.

DWF corporate partner Keith Melling said: “At a time of reduced activity in the corporate transactions arena it’s encouraging that the parties and their advisers were able to make the deal happen. That said, Flame is a profitable and growing business with a reputation for its quality products. This deal will give full control to the management team to allow them to develop it further.”

Craig Richardson added: “This is a great example of transactions still being able to be financed in the current climate, if the company is a quality business with sustainable profitability and has a robust business model and an excellent management team.”