Scotland's oldest continually operating textile mill is to close, with the loss of more than 30 jobs.

Caerlee Mills in Innerleithen in the Borders dates to 1788 although its current operator was only formed in 2010 after a management buy-out.

The mill, which produces hand-made knitwear and cashmere clothing, employed 36 people but a drop in orders left the firm in difficulty.

Liquidators KPMG had attempted to find a buyer but no interest was expressed.

Blair Nimmo, joint provisional liquidator and head of restructuring for KPMG in Scotland, said: "Despite our best efforts to secure the sale of the mill we have been left with no option other than to cease all operations with immediate effect.

"Unfortunately 33 of the company's 36 employees have been made redundant, with three staff being retained in the short term to assist in winding down the business.

"There was no interest expressed from parties looking to continue running Caerlee Mills as a going concern, which has ultimately led to its closure.

"We would like to thank staff for their co-operation through this difficult process. We will be working with employees to ensure that support to find alternative employment is available for all those who need it."