The Ofsted outstanding provision, which was set to close last month after Sheffield City Council withdrew its funding, has been rescued by parents who will now run the setting in partnership with staff as a social enterprise.
The withdrawal of funding followed a year-long council review into its early years services in 2012.
Broomhall Under 3s, which operates from within Broomhall Nursery School and is registered for three babies and 16 two- to three-year-olds, re-opened last week under the management of a board of five parent directors.
The day-to-day running of the setting is being handled by former members of staff Jill Wilkinson and Theresa Fletcher, who will act as joint managers.
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