Chanel buys Scots knitwear company

Deputy Business Editor

Wednesday 17 October 2012

INTERNATIONAL fashion house Chanel has bought the business and assets of Scottish cashmere manufacturer Barrie Knitwear from administrators KPMG.

PERFECT FIT: Hawick-based Barrie Knitwear already supplies the material for Chanel's cardigans.

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greig cameron deputy business editor

The deal, completed yesterday afternoon, preserves the jobs of 176 people at the Hawick textiles company, which will continue to be headed by current managing director Jim Carrie and sales director Clive Brown.

No-one involved in the transaction was willing to confirm how much Chanel has paid to acquire Barrie, but industry sources suggested the price may run into seven figures.

Former textiles giant Dawson International, which owned Barrie, was placed into administration in August this year after being unable to negotiate a way to plug its pension deficit with the Pensions Protection Fund (PPF).Four people chose to leave Barrie during the administration period but the remaining staff are all being retained by the new owners.Barrie has been providing material to Chanel, which has renowned fashion designer Karl Lagerfeld as its current creative director, for more than two decades.It is understood Barrie will continue to supply to a number of brands and will not operate exclusively for its new owners.The deal was last night hailed as a "good end to a difficult period" by the main union representing the workers.Alex McLuckie, from the GMB Scotland union, described Chanel as a "nice fit" for Barrie. Mr McLuckie said: "We always knew there was a fair degree of interest in the business as it was profitable and has a highly skilled workforce that produced a quality product."We wanted to save the jobs and keep the site as a production unit and this takeover by Chanel achieves that. It is a good outcome for the employees and the local economy. "All the jobs are going to be safeguarded and the employee's terms and conditions are not going to be affected." Blair Nimmo, the head of restructuring at KPMG in Scotland, said: "With the sale to Chanel, we believe we have secured a sustainable future for a business which is of both historical significance to the textile industry and of local importance as a major employer in the Scottish Borders. We would like to thank the staff, customers and suppliers for their patience, loyalty and understanding as we worked towards achieving this sale."KPMG had received 35 notes of interest about buying Barrie prior to a closing date for offers at the end of August.The first preferred bidder, which had not been named, pulled out for unspecified reasons, leaving the way clear for Chanel to step in.Bruno Pavlovsky, Chanel fashion president, said: "The acquisition of Barrie business by Chanel is all the more natural as the factory has worked with us for more than 25 years, producing cashmere knitwear including Chanel's iconic two-tone cashmere cardigans. "Through this acquisition, we reaffirm our commitment to traditional expertise and craftsmanship, and our wish to safeguard their future and support their development."Dawson was once owner of names such as Pringle and Ballantyne and had significant US operations.It was responsible for funding a scheme which has around 3320 members, although only 56 of those are active.In July, Dawson failed to agree a rescue package for the scheme with the PPF, which provides compensation to members of eligible schemes where there is a qualifying insolvency.Around 1900 former Dawson employees now working for other companies may face cuts of at least 10% in their pensions due to the administration.Dawson's US arm, Dawson Forte, was not affected by the administration. Chanel, founded in 1909 by Gabrielle "Coco" Chanel, is famous for its signature No 5 fragrance and the Chanel suit.

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Chanel buys Scots knitwear company

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