According to a BBC report this afternoon, the deal is expected to secure all 176 jobs based in Hawick and Chanel said the company's current management would stay in place.

Barrie Knitwear was a trading division of Dawson International, which was placed in administration in August because of the size of its Dawson’s pension liabilities. Chanel did not disclose how much it paid for the business and its assets, the BBC report said.

Chanel fashion president Bruno Pavlovsky told the BBC: "The acquisition of Barrie business by Chanel is all the more natural as the factory has worked with us for more than 25 years, producing cashmere knitwear including Chanel's iconic two-tone cashmere cardigans.”

"Through this acquisition, we reaffirm our commitment to traditional expertise and craftsmanship, and our wish to safeguard their future and support their development."

Dawson International joint administrator Blair Nimmo, from KPMG, said he believed the sale had "secured a sustainable future for a business which is of both historical significance to the textile industry and of local importance as a major employer in the Scottish Borders".

Source: BBC