Pringle of Scotland, the world-famous knitwear firm, yesterday signalled its intent to close its Scottish manufacturing base and outsource production of its garments.

Pringle of Scotland, the world-famous knitwear firm, yesterday signalled its intent to close its Scottish manufacturing base and outsource production of its garments.

The move, which would entail up to 80 job losses in the Borders town of Hawick, was described by local residents and politicians as a "devastating" blow to the area's fragile textiles industry.

The company, established in 1815, said it would retain its headquarters and around 30 jobs in Hawick and expressed hope some manufacturing could be outsourced to local firms. However, industry insiders claimed this was unlikely, and that most of the jobs would go abroad, with Italy the most likely destination. The firm has begun formal consultations with union representatives to discuss redundancies but said the plans would not be confirmed until after at least 30 days.

Douglas Fang, Pringle's chief executive, said the company had to respond to the changing nature of the fashion market.

"We have to consider ways to improve the performance of the business and closure of the manufacturing operation at the plant is, very regrettably, something we must consider. Any decision to close the operation is not one we would take lightly, but due to changing demands and the competitiveness of the industry, we have to consider this possibility."

Christine Grahame, the South of Scotland MSP, said: "If Pringle does stop manufacturing in Hawick this would be a serious blow for a town the size of Hawick. Scotland is an essential part of the Pringle brand and to end manufacturing in Hawick would be the end of an era."

John Lamont, the MSP for Roxburgh and Berwickshire, said: "It's a devastating blow for Hawick. I'm looking to work with management, unions and staff to try to make sure as many jobs are soaked up in the town of Hawick as we can. It's important there's a safety net provided by Scottish Enterprise, the council and other groups, to provide help."