KPMG have been appointed as administrators for Dawson International, the parent company of Barrie, the cashmere manufacturers in the Scottish Borders.
200 jobs are at risk at their site in Hawick.
It follows yesterday's announcement that Dawson International was being placed in administration because of a £129m pension deficit.
However, there is some hope that jobs at Barrie can be saved.
Several companies have already expressed an interest in buying the knitwear specialist.
The pension regulator has defended its decision over Dawson International, which has gone into administration leaving 200 jobs at risk in the Scottish Borders.
Barrie knitwear in Hawick produces cashmere clothing.
Its parent company, Dawson International, strongly criticised the Pension Protection Fund for rejecting proposals to resolve the company's £129m pension deficit.
Chairman David Bolton said there had been "a flawed process, lacking in common sense and transparency".
The Pension Protection Fund said in a statement:
– Martin Clarke, PPF Executive Director for Financial Risk
“On rare occasions, we will - alongside the Pensions Regulator - consider transactions which allow a company to continue to operate with the pension scheme being taken on by the PPF.
We do not enter such arrangements lightly and only agree them if a number of stringent tests are met.
Unfortunately, in this case the offers made to take on the pension scheme, given the size of the deficit in the scheme, were inadequate.
We will be working with the administrators to make sure that the interests of the Dawson pension scheme members are best represented.”
There is optimism that a textile mill in Hawick can be saved, despite its parent company going into administration.
Barrie knitwear employs around 200 people and makes clothes for high quality designer labels. Yesterday its owner, Dawson International, announced that problems with a huge pension deficit had forced it into administration.
But several companies have already expressed an interest in buying the mill and local people are hopeful that it can be saved.
Reaction from Cllr Stuart Marshall from the Scottish Borders Council, Hawick & Denholm and Cllr Ron Smith, Honorary Provost, Hawick
Dawson International, the company that owns Barrie Mill in Hawick, has been placed in administration.
Around 200 people work at the mill in Hawick, which produces high quality cashmere clothing for some of the world's top fashion brands.
It follows rejections by the Pension Protection Fund of offers to resolve the company's large pension deficit. In a statement the Chairman, David Bolton said:
– David Bolton, Chairman
“This is a sad day for Dawson International, and for British manufacturing. To see this 140-year-old company forced into administration due to the PPF’s decision is deplorable, a direct consequence of a flawed process lacking in common sense and transparency."
The company are hopeful a buyer can be found.
A week after Dawson shares were suspended on the stock market, launching 200 employers in the Borders into an uncertain future, local MP Michael Moore has expressed his concern that the problems facing the company are still unresolved.
Dawson International, which has a large pension deficit, run the Barrie Mill, which is one of Hawick's biggest employers.
The mill makes cashmere garments to be sold to some of the world's top fashion brands.
Commenting, Mr Moore said:
– Michael Moore MP
“It is now a week since the shares were suspended and I am very concerned about the uncertainty hanging over the people of Hawick.
“The issues have to be resolved quickly so that the business at Barrie can be put on a secure footing.
“I am continuing to keep in close contact with company representatives and I hope we will receive news of a resolution very soon.”
There are believed to be several buyers interested in a troubled cashmere mill in the Scottish Borders.
Directors at Dawson International, which runs Barrie Mill in Hawick, are still in talks about whether to place the company into administration.
The company's shares were suspended on Wednesday because of a huge pension defecit.
The mill, which employs 200 people, makes garments for some of the world's top fashion brands.
Commenting on the ongoing situation at Barrie Mill in Hawick, MP Michael Moore says he believes its "highly probably" the company will go into administration and it's "critical there is a quick decision'.
Shares in Dawson International which runs the cashmere-making company have been suspended while directors decide whether or not to place it into administration. It's due to a large pension deficit.