The Provost of Hawick has told ITV Border that employees of Hawick Knitwear are currently in talks with administrators KPMG, about the future of the company.
Stuart Marshall - himself a former employee of Hawick Knitwear - says he's working with local politicians from all parties:
It's a devastating start to 2016 for the people of Hawick.
Hawick Knitwear is filled with the most hardworking people you could ever hope to find.
It's a major blow for a town that has already suffered many setbacks in the industry over the years.
I will now be working with local politicians who are all united in the fight to save the future of this company."
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