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: