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:
“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.
There is optimism that a textile mill in Hawick can be saved, despite its parent company going into administration.
Talks have been continuing throughout the day over the future of one of Hawick's biggest employers.