A LUXURY knitwear company is considering ending production in a Scots town after 138 years, with up to 50 jobs at risk.

Peter Scott Knitwear is holding a consultation into its future and considering ceasing all production at its headquarters in Buccleuch Street, Hawick. 

The announcement is another major blow to the textile industry in the Borders. The move could result in up to 50 jobs being cut, with the majority of those employed at risk of redundancy.

In a statement, the company said the option is being considered because “the previous restructuring programme and ongoing sales performance had failed to produce the projected financial results”.

It said trading remains difficult, and income has not increased enough to maintain staffing levels.

The statement concluded: “In an attempt to avoid compulsory redundancies the management will aim to meet with elected staff representatives during the consultation period in an effort to find a workable solution.”

Managing director Daniel Kim said Peter Scott was looking at the possibility of a  move from its Buccleuch Street site. 
Peter Scott Knitwear , known in Hawick as Pesco, was established in Hawick in 1878 to produce luxury cashmere goods.

The company traded successfully for more than a century, but ran into difficulties when the UK economy entered recession.
In 2009 it struck a multi-million-pound deal with Peek and Clopperberg.

But in May 2010 the firm entered administration with the loss of 120 jobs. It blamed the job cuts on orders drying up, due to a reduction in spending on luxury goods.

In July 2010, the company was bought by Northampton-based Gloverall Plc, saving 20 jobs and three years later £250,000 was invested in new machinery.

But the latest announcement puts the majority of those employed by Peter Scott – owned by Northampton-based Gloverall – at risk of redundancy.

The company currently employs 63 staff with 48 directly involved with production and would be affected by the change.