Plans for future of Dawson assessed

Deputy Business Editor

Thursday 30 August 2012

ADMINISTRATORS of the failed Dawson International cashmere business were last night examining the options for the future of the company.

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Greig cameron deputy business editor

After receiving inquiries from around the world, KPMG had set a deadline of 4pm yesterday for offers to buy the textiles company to be submitted.

Union officials from GMB Scotland are keen to find out what any potential new owners have planned for Dawson's Barrie Knitwear division, which employs 180 people in Hawick.

But the administrators were last night unable to release details on how many of the 35 notes of interest had turned into viable bids. More information is expected to emerge in the next few days.Previously, KPMG had indicated it was hopeful of completing a sale of Dawson as a going concern before the end of September.Dawson was placed into administration on August 15 after being unable to negotiate a way to fill a £129 million deficit in its pension scheme.Weeks earlier Dawson failed to agree a rescue package for the scheme with the Pension Protection Fund (PPF), which provides compensation to members of eligible schemes where there is a qualifying insolvency.Dawson is understood to have offered a one-off payment to the PPF and a stake in the company in order to allow it to trade through its difficulties.The pension scheme has around 3320 members, although only 56 of those are active, and, as a result of the administration around 1900 former Dawson employees now working for other companies are facing cuts of at least 10% in their pensions.Dawson's United States arm Dawson Forte, which has its main office in Boston and a showroom in New York, is still trading and has not been affected by the administration.

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Plans for future of Dawson assessed

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