Sara Davies paid £425,000 to buy back Crafter's Companion, documents reveal

Dragons' Den star Sara Davies saved her beloved Crafter's Companion from collapse in a £425,000 deal, newly released documents reveal.

The company, which Ms Davies founded as a student, had accumulated debts of £16.7m before being bought out of administration by Ms Davies and her backers earlier this year. The move salvaged 134 of the firm's 148 jobs, although one of its stores in Derbyshire was forced to close.

Despite being the founder, Ms Davies had ceded control of the firm to investment group Growth Partners. According to the administrators' report by Interpath, Growth Partners held £8.2m in loan notes on the company but is unlikely to receive any return on this investment. Additionally, Santander is owed nearly £1.9m, with some of this amount expected to be repaid.

The report explains: "The company was loss-making, recording a l