Collapsed textile firm with 176 staff looking for buyer

But Borders-based JJ&HB Cashmere Mills was described by the local MSP as "highly viable" and the workers have been kept on.

The firm has operations at Caerlee Mill in Innerleithen, near Peebles, and in Coatbridge and Galashiels.

James Stephen, of administrators BDO, said: "It is unfortunate that the economic climate and difficult trading conditions have significantly affected the retail sector. However, the company is a long-established manufacturer of cashmere products recognised for its quality output.

"We are continuing to trade the business and hope to sell the company as a going concern and have already received an expression of interest in this respect."

Local Liberal Democrat MSP Jeremy Purvis said the firm is critical to the local economy.

"The company going into administration is of significant concern for all the staff involved and I am happy to offer any advice and assistance to them.

"The mill and the business is highly viable and the administrator has assured me that with strong order books and with the current assets that exist the business should be able to be sold as a strong entity and this is something that I strongly encourage."

Administrators were appointed to the firm and its subsidiary, JJ&HB Cashmere Mills Coatbridge Ltd, on Tuesday.

David Mundell, Conservative MP for Dumfriesshire, Clydesdale and Tweeddale, said: "This news has come as a complete shock to the workforce and the wider community. They're a major employer in the area and the last real link to the Borders textile industry. It's vital a new buyer is found and this is not an even harsher winter than the workers and their families are already experiencing."