Gourmet Burger Kitchen (GBK) will close 26 restaurants and axe 362 roles despite being saved from administration.
The company has been drastically affected by the coronavirus crisis.
It has been snapped up by Boparan Restaurant Group (BRG), which also bought Carluccio's out of insolvency earlier in the pandemic.
GBK shut a raft of restaurants in 2018, but still slid into administration.
The chain has now been sold in a pre-pack administration deal after working with insolvency specialists at accounting firm Deloitte.
It said the move will save 35 sites and 669 jobs from its original network of 61 restaurants and 1,031 employees.
GBK was put up for sale this year after owner Famous Brands indicated it would not provide any further funding, Sky News reported.
Gavin Maher, joint administrator at Deloitte, said: "As with a number of dining businesses, the broader challenges facing 'bricks and mortar' operators, combined with the effect of the lockdown, resulted in a deterioration in financial performance and a material funding requirement.
"We have been working closely with the management team under very difficult market conditions to try and find a funding solution and I am glad to be able to announce the rescue of this well-loved brand together with a large proportion of the sites and workforce.
"However, it's clearly disappointing that a number of sites have had to close resulting in today's redundancies.
"We would like to thank all of those involved in the transaction, including our legal advisers, DLA Piper, and wish the management team, workforce and the new owners, Boparan Restaurant Group, every success in now taking the business forward."
Satnam Leihal, managing director of BRG, added: "We welcome the GBK team to BRG.
"This latest acquisition is in line with our strategy to grow our restaurant group with quality brands. Whilst it is an extremely challenging time for the sector, we believe quality hospitality businesses will recover in the long term as people return to eating out."