Nearly 200 jobs are at risk as Hawick-based company calls in administrators KPMG
Nearly 200 jobs are at risk at Scottish cashmere firm Dawson International after a row over the black hole in its pension schemes forced the company to call in administrators.
The Hawick-based company, which used to be a flag carrier for the Scottish textiles industry, said it had no option but to call in administrators KPMG after the collapse of talks with the Pension Protection Fund (PPF), the government pensions lifeboat, and the Pensions Regulator.
It would cost more than £100m to buy pensions for the schemes’ members and the compensation being offered by the company was not seen to be enough given the financial responsibilities the PPF was being asked to shoulder.
The company’s shares were suspended last week and KPMG, which was formally appointed , said it had already received expressions of interest in the 140-year old textile firm.
Dawson, which employs 180 staff at Barrie Mill in Hawick, makes cashmere garments for other luxury retail brands.
“We plan to trade the business as a going concern and have no intention to make redundancies,” said KPMG partner Blair Nimmo. “It has a long trading history and a quality customer base.” What was once a knitwear giant has made a series of disposals. The last set of figures showed a profit of £1.1m on annual sales of £10m. It has no debts.