SOME 160 jobs have been saved at the hot dog firm which is one of the biggest employers in Ryedale.
As reported by the Yorkshire Post, Westler Foods factory at Amotherby, went into administration last month.
It has now been bought out by a new company, With Comb Ltd, with financial backing from private equity firm, RCapital Partners LLP.
Malton town mayor Jason Fitzgerald-Smith said: "Westlers has been a key employer in the Malton area for a long time and this is terrific news, especially in the present difficult recession."
The profitable business, which employs 162 people at Amotherby, was toppled by a 15m deficit in its pension scheme.
The new company, which includes some of the former members of the management team of Westler Foods, will continue to trade as Westler Foods.
The pensions of employees and former employees were transferred to the Government's Pension Protection Fund (PPF) when the difficulties began.