226-year-old Scottish company with royal warrant unveils plans to cut 60 jobs

A family-owned Scottish textiles company favoured by the Royal Family has announced plans to slash more than 60 jobs due to a “slowdown” in the luxury goods market.

Johnstons of Elgin, which sells high-end textiles including tweed, knitwear and woven accessories and recently received a Royal Warrant from King Charles, said it would look to cut the posts at its Moray mill as part of a restructuring. Jobs at its facility in Hawick are not affected.

The 226 year old company said that it is set to report sales worth £100 million last year - a rise of 20 per cent on the previous 12-month period - but warned its expectations for the coming year were lower than previously expected.

The brand boasted earlier this year that it had seen some of its ranges sell out after items were worn on screen by Claudia Winkleman, host of BBC hit series The Traitors, which is filmed at a castle outside Inverness.

A spokesperson said the firm had seen strong growth over the past three years, “in line with the overall strength of the luxury market following the pandemic”, but warned sales in the coming year and into next year were set to slow, citing “global uncertainty” and changes in consumer behaviour. She said: “We now expect sales in 2024 to be lower than last year and have had also to revise downward our future projections for 2025.

“Unfortunately, this means that we will have to consult with our workforce in Elgin to restructure our team in line with current and expected future demand.” The spokesperson added: "In the longer term, we expect the luxury market to recover to a more stable long term growth trajectory, albeit at a slower rate than we have seen in the last decade.

"We continue to invest in equipment, training and development to be well placed to be able to support our customers and grow our own brand as the market improves."

Union Unite has said it will fight the redundancies “tooth and nail” and said it would meet with senior staff at the company next week.

Marc Jackson, Unite industrial officer, said: “Johnstons of Elgin has informed Unite of the potential for redundancies at the Elgin site.

“We are actively engaging with our members and in discussions with the company to minimise any impact.”

He added: “Unite has made it crystal clear to Johnstons of Elgin that we will fight tooth and nail to avoid any compulsory redundancies.

“We believe other options have to be on the table including voluntary redundancies. Unite will be formally meeting with Johnstons next week in order to advance these objectives in the interests of our membership.”

Employing more than 1,000 people, Johnstons of Elgin was founded in 1797 and began shipping internationally in 1813. The family-owned brand is now the UK's largest producer of luxury cashmere and fine woollens.

In May, it received a Royal Warrant by King Charles for its “exceptional” work in manufacturing estate tweeds, the brand knitwear, and woven accessories.

The recognition placed the brand among approximately 800 Royal Warrant Holders, ranging from individual craftsmen to global corporations, supplying goods and services to the Royal Household.

Company accounts for the twelve months to the end of 2023 are due to be published in the next few weeks.