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, the BBC reports.

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, according to the website.

Excellent reputation

“Hawick Knitwear has an excellent reputation in the industry. The company benefits from its heritage and established infrastructure together with a developing brand and a highly-skilled workforce, which we believe will be an asset to prospective purchasers. Unfortunately, extremely difficult market conditions have led to the current position,” said Blair Nimmo, head of restructuring for KPMG in Scotland.

He said it was "regrettable" that a high level of redundancies had been necessary but said they would be working with employees and government agencies to ensure that the "full range of support" was available to those affected. "In the meantime, we would encourage any party who has an interest in the company's business and assets to contact us as soon as possible," he added.

Devastating news

Berwickshire, Roxburgh and Selkirk MP Calum Kerr described the news as "shattering for Hawick and the Borders". He said he had contacted Scottish Enterprise to see what support it could provide and would also be speaking to administrators. "I believe that real opportunities do exist for the business to succeed," he added.

Ettrick, Roxburgh and Berwickshire MSP John Lamont also described the announcement as "devastating news". "It is a massive shock to lose such a well-respected and big name as Hawick Knitwear," he said. He called on the Scottish government to do all it could to support those affected and is seeking an urgent meeting with administrators.

Knitwear heritage

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 agricultural revolution and the local breeding of thick fleeced Cheviot sheep, pastured on the hills that dominate Hawick, ensured that good quality wool was suddenly in supply for the first time. Over the last 140 years the company has enjoyed numerous peaks and troughs, mirroring the general trends of UK manufacture. Currently, Hawick Knitwear produces around 300,000 garments per year, and has historically manufactured for Christian Dior, Chanel, Prada and Brooks Brothers.

Today, the luxury knitwear industry, and specifically Scottish Borders cashmere production, still dominates the region’s architecture and culture, despite the fact that the mid 20th century boom years are a fading memory and the reality that many famous Borders’ brands have now shifted production off shore to the Far East for economic reasons.

Significant changes

The Hawick firm has gone through some significant changes in recent years. In 2008 and 2009 it announced two rounds of job cuts within a matter of months. The following year it was the subject of a management takeover.

In 2011 the company announced an increase in turnover of 20% to £8 million in its latest accounts. The firm increased its production to 9500 sweaters per week, from about 7500 per week last year. Later that year, Hawick Knitwear has announced plans to hire 50 new trainees over the next three years in order to help meet demand for its quality knitwear. In 2012, however, Bolton-based Ruia Group purchased a 50% stake in the business.

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