UK formalwear retailer Greenwoods Menswear has been acquired by Harvest Fancy Hong Kong after it briefly went into administration.

More than 500 jobs across the UK have been saved after joint KPMG administrators Richard Fleming and Mark Firmin immediately sold the business to Harvest Fancy, a subsidiary of Chinese retail group Bosideng.

Of Greenwood's 579 staff, 556 will be transfered to the new owner and 87 of 92 stores will remain open, a statement by KPMG said.

Harvest Fancy will continue to trade the business as Greenwoods Menswear.

Gordon Gao, son of the founder of Bosideng, will be chairman of Bradford-based Greenwoods.

Since last autumn Greenwood's cash position has become increasingly difficult due to a reduction in credit terms from suppliers, plus sterling's fall in value, which increased the cost of imported stock. In addition, the decline in consumer spending led to a significant sales fall.

Richard Fleming, joint administrator and KPMG restructuring partner, said: "We are extremely pleased to have completed a going concern sale that sees 87 stores remain open, securing the jobs of 556 employees - 96% of the workforce. Against a difficult economic background this is a particularly good result."

Bosideng's worldwide sales amounted to GBP2bn in 2007 and the company employs over 20,000 people in China.