200 jobs at risk as Dawson International goes into administration

By DOMINIC JEFF
Published on 15/08/2012 18:20

Troubled cashmere maker Dawson International has gone into administration, putting the jobs of its 200 staff in doubt.

The Hawick-based firm had been struggling under its pensions burden and its shares were suspended last week after it warned it could go bust if it didn’t find a way to handle its liabilities.

In a statement to the stock exchange, the firm said Gary Fraser and Blair Nimmo, both of KPMG, have been appointed as its administrators.

It added that there remains no intention to appoint administrators for the US knitwear business, Dawson Forte, which is “well funded and continues to trade normally”.

Dawson’s pension woes came to a head after the Pension Protected Fund last month rejected a rescue deal. Now that the company is in administration the fund will take over it pension scheme, which could make the business easier to sell.

Pension trustees had served it with a notice demanding an explanation as to how the company would meet its pension scheme deficit - which is thought to have hit £50 million - and pay the pensions of about 4,000 retired workers.