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.
There's concern for around 200 jobs in the Scottish Borders after news that a cashmere firm could go into administration.
Dawson International, which runs the Barrie mill in Hawick, makes clothes for a variety of luxury and designer brands.
Shares in the company have been suspended because of ongoing problems with its pension fund. The company have released a statement which says:
"Following conversations between the directors andthe trustees of the UK defined benefit pension plans (“the Plans”), the actuaryof the Plans has served Notices of a Determination of Contribution (“Notices”) jointlyon the Parent Company and its UK trading subsidiary, Dawson InternationalTrading Limited (“DITL”).
"The directors of each company will consider these Notices today withtheir advisors to determine whether these Notices are valid and whether it isnecessary to appoint administrators for either or both companies.
"Pending this decision and therefore pending clarification of the Parent Company’s financial position, the directors have requested that the shares in Dawson International be suspended with effect from 7.30am on 8 August 2012.
"The directors of the Parent Company would emphasise that there is no intention to appoint administrators for the US knitwear business, Dawson Forte, which is well funded and continues to trade normally."