Anna Spicknell bought the Fleckney nursery in Leicester for the nominal fee debt-free.
Last month the owner, Robert Shannon, who runs the Pebbles nursery group, closed another nursery in Uppingham, Rutland.
It was reported that Mr Shannon thought that the Uppingham nursery, which catered for 50 children, was no longer financially viable and had made a loss for the past two years.
Ms Spicknell told Nursery World, 'The owner gave me a letter to give to the parents giving them one week's notice of closing the nursery. I thought it was a shame to do that - it's been going for 20 years. I said, "Is there any way we can keep it going? How much do you want for it?" And he said I could have it for a pound if I took it off his hands.
'I asked to take it on debt-free - which would save him redundancy money - and he agreed.'
Ms Spicknell started working as a nursery nurse at the Fleckney nursery seven years ago.
Ms Spicknell has now been running the nursery for three weeks and is in the process of re-registering with Ofsted as the sole owner and changing the nursery's name to the Blossom Tree.
The nursery employs seven members of staff, is registered for 42 children and is open from 7.30 to 6pm for 51 weeks a year.
Ms Spicknell said, 'Parents have been really supportive. It's growing. We're gaining two children every month.'
Pebbles has five other nurseries spread across Leicestershire and Northamptonshire. It is believed the owner intends to keep the nurseries open but is to change the group's name to Child Space.
