Up to 50 jobs in Kidderminster look set to be saved following the collapse of retailer De Bradelei Mill Shops.
Administrators from accountants Tenon have closed the company's outlet in the town, as well as those in Lutterworth and Melton Mowbray in Leicestershire.
York-based companies Pavers Shoes and clothing firm Leading Labels are planning to operate at the former De Bradelei site.
Pavers managing director Steve Collyer said a six month lease had been agreed and it was hoped to extend that in the long term.
He said trading should begin shortly, perhaps as soon as Thursday next week.
The operation would be branded Pavers and Leading Labels.
Pavers believe the move would save around 50 jobs, either employed at the store or linked to the operation, however a spokesman for Leading Labels put that figure closer to 25. The shoe business previously operated as a concession at De Bradelei.
Mr Collyer said: "Kidderminster has always been a good site for us. We will be looking to continue if possible in the long-term."
Managing director Stuart Paver said he believed there was a huge opening for the retail operation.
The number of consumers aged 40 or more was increasing and they made up the core of Pavers customers,
He said: "This group of consumers feels increasingly alienated from cloned high streets aimed at teenagers and 20-somethings so we felt it was very important to make sure the heart and soul of Kidderminster remains."