It is understood that 20 jobs will go in the coming weeks at Peter Scott and Co, and the company has confirmed that it is seeking voluntary redundancies before entering the 30-day consultation period.
This is the largest blow to the local knitwear industry for some time.
A spokesperson for the company said: “Peter Scott has announced a restructuring programme across the business, proposing a reduction in jobs at their Hawick headquarters.
“Despite best efforts to grow the business, lower than expected turnover and tough trading conditions dictated a review of the business strategy and structure which may result in job losses.
“The proposed job losses may become a necessary action to ensure the company’s ongoing operations and enable Peter Scott to create a firm platform for future growth.
“In an attempt to avoid compulsory redundancies as part of this proposal, the company is prepared to consider employees who wish to volunteer for redundancy.
“If there are sufficient volunteers, this may reduce or eliminate the need for compulsory redundancies.
The town’s provost, Stuart Marshall, is deeply concerned.
He said: “I only learned of this sad news at Peter Scott from anxious employees and it really is quite a blow not only for the town but more importantly for the families that may be affected .
“Our knitwear industry has been doing quite well recently and I can only hope that some of the other factories in the town can absorb the impact.”
Peter Scott and Co went into administration in 2011 before it was bought by South Korean-owned Gloverall, which took on extra staff at the Hawick factory.
This article is from our sister paper the Southern Reporter