Seven parents donated a total of £3,000 of their own money to Chatterbox Children's Nursery in Cwmbran, Gwent, after it closed on 10 July.
Nursery owner Tracey Coslett wrote to the parents of each of the 26 children at the setting on 7 July informing them that the nursery would have to close after it fell into arrears.
The number of children at the nursery, which is located on an industrial estate, fell after some parents could no longer pay their fees due to wage reductions and redundancies. At the time of closure, each member of staff was owed three weeks' pay.
Along with the donations from parents, the nursery's landlord has agreed for the setting to pay no rent until October, and Ms Coslett has been able to pay all of its outstanding bills.
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