Edinburgh Woollen Mill has confirmed plans to move its head office from Scotland to England.
The move to Carlisle by the clothing chain established in Langholm in Dumfries and Galloway 70 years ago is aimed at creating more jobs.
But it raises questions for the future of the 190 staff currently employed at the Langholm base.
The firm said the Scottish offices were not capable of supporting a "modern, fast-growing, national retail development".
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It said that as Carlisle is on the main railway line between London and Glasgow it will be "more easily accessible for our partners".
"Top quality transport connections are an important part of building a national business and a priority for all our colleagues."
The EWM group said it expected to turn the existing Langholm base into a heritage centre.
A company spokesman said the move would allow it to create "more jobs for local people" and is expected to take place or around 30 July 2018.
EWM said: "The decision to move to Carlisle was not taken lightly or quickly, but EWM Group is expanding and our current premises in Langholm are not capable of supporting a modern, fast-growing, national retail development.
"Langholm has played a critical role in our company's history and heritage, and we will be retaining our headquarters building there.
"We have ambitions to turn the building into a heritage centre which celebrates the role that both Edinburgh Woollen Mill and textiles has played, and continues to play, in Scotland."
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A company spokesman added: "Around half of the people who work in our head office already commute from Carlisle to Langholm and we are consulting with all our colleagues to ensure that this runs as smoothly as possible."
The consultation is also to include the possibility of providing workers daily coach transport between Langholm and Carlisle for a "transitional period" as well as allowing them to "apply for other vacancies across the EWM Group that might be of interest to them".
The move comes as Carlisle United directors earlier this month faced questions about its close relationship with Edinburgh Woollen Mill at the club's annual general meeting
In the meeting in the Sunset Suite, attended by about 30 shareholders, United chiefs were challenged about a perceived "caginess" behind the lack of detail and comment on the financial links with EWM.
The firm loaned United £450,000 between March and late June last year, United's 2016/17 accounts showed.
Very disappointed to hear that Edinburgh Woollen Mill have confirmed date of their move from #Langholm to Carlisle. EWM owe a duty to the community to recognise the loyalty and support they have given over many years and I am calling on them to meet it
— David Mundell (@DavidMundellDCT) May 23, 2018
Few people will be surprised at news Edinburgh Woollen Mill plan to move from their historic home in #Langholm to Carlisle. Existing staff may well be able to commute but this is still a huge loss of employment from a community which has haemorrhaged jobs for many years.
— Colin Smyth (@ColinSmythMSP) May 23, 2018
The retail empire led by the Dubai-based billionaire Philip Day last year reported a solid year with sales and profits rising despite “intense competition” and challenges on the high street.
EWM Group, whose brands include the discount chain Peacocks and the fashion retailer Austin Reed, saw operating profits climbed by 1.7 per cent to £91.5 million, although when foreign exchange losses are accounted for, the unadjusted operating profit was £83.3 million.
READ MORE: M&S says closure of up to 100 stores is vital for chain’s future
Mr Day, who also lives in Edmond Castle in Cumbria said then that despite operating in an “intensely competitive” market the group’s strategy of pricing its products right, improving its online performance and operating a highly efficient supply chain was proving effective.
The company was founded in 1946 by Drew Stevenson as the Langholm Dyeing and Finishing Company, dyeing wool yarn to order.
His eldest son, David, until once chairman of the EWM Group, opened the first retail store in Randolph Place, Edinburgh, in 1970. In 1972, the first English store was opened in Carlisle.
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