Caerlee Mill workers face liquidation threat

The company that runs Scotland’s oldest continually operating mill has gone into provisional liquidation.

Caerlee Mill in the Borders dates to 1788 although its current operator was only formed in 2010 after a management buy-out.

Caerlee Mills Ltd, which traded as Ballantyne Cashmere Ltd, employs 36 people at the site and has a turnover in the region of £1 million.

But a drop in orders left the firm in difficulty.

The mill in Innerleithen, Peeblesshire produces hand-made knitwear and cashmere clothing.

Provisional liquidators plan for the business to carry on trading while they search for a buyer.

Blair Nimmo, head of restructuring for KPMG, has been appointed joint provisional liquidator.

“Caerlee Mills has a rich history dating back more than 200 years and remains an attractive acquisition for the right buyer. The company has been facing difficulties following trading losses and increasing cash-flow pressures, mainly resulting from a reduction in orders.

“There remains an excellent opportunity to acquire a well-known business which manufactures a top-quality product, and we are hopeful a buyer can be found.”