Blair Nimmo and Tony Friar of KPMG were appointed joint administrators in January at the request of the company's director. They have now confirmed the sale of the plant, machinery, the Hawick Knitwear brand and its intellectual property to Lyber 2016, a group formed by Hong Kong-based Artwell.

Lyber 2016 became preferred bidder in February by paying a non-refundable deposit. Mr Nimmo said: "We would like to thank everyone involved for their patience and perseverance during what has been a challenging sales process. We are very pleased to have achieved a sale of certain Hawick Knitwear key assets. We wish the purchaser every success in its new venture."

Great news

Business Minister Fergus Ewing described the sale as great news for Hawick and the textile industry in the Borders. "The sale is testament to the quality of the product and the demand for knitwear from this part of Scotland. While the number of staff is expected to be lower than previously employed at Hawick Knitwear, I am pleased that operations will continue,” said Mr Ewing.

"We worked closely with KPMG and Scottish Borders Council to identify potential investors. Scottish Enterprise is supporting Lyber 2016 Ltd to start up the venture and will identify any other business support that could help grow the operation and ensure a long-term future.

"I look forward to publication next week of an action plan for Hawick which will set out how working together, the public and private sector can ensure a positive future for the town."

Hawick Knitwear factory

The Hawick Knitwear factory sits right at the heart of Teviotdale, in the Borders’ town synonymous with luxury knitwear. Textiles have always been produced in this part of Scotland, beginning as a cottage industry where fabric was produced to service local needs.

The company's manufacturing heritage dates back to 1874 but it has been experiencing difficult trading conditions in recent years due to increasing production costs and reducing margins.

Recent mild winters have also been blamed for reduced demand for heavier winter garments. Attempts to secure new investment proved unsuccessful leaving the director with “no option” but to place the company into administration earlier this year.

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Hawick Knitwear enters administration with more than 100 job losses