Published: Sunday, 10th January, 2010 8:18pm

170 jobs under-threat at Borders manufacturer

MORE than 170 jobs are under-threat after a Borders-based cashmere manufacturer announced it has entered administration.

Ballantyne Cashmere, which operates from Scotland's oldest continually operating textile mill at Caerlee in Innerleithen, blamed "difficult trading conditions".

However, following talks with Scottish Finance Minister John Swinney, South of Scotland SNP MSP Christine Grahame claimed she was optimistic that jobs could be saved.

The administrators for the Italian-owned firm, which has been described as the area's last substantial link to the textile industry, revealed they had already received an "expression of interest" in buying the cashmere manufacturers, which also has offices in Coatbridge and Galashiels.

Ms Grahame said: "I am informed that there is some optimism that a new buyer can be found. Naturally we must be cautious but it would be good if such an outcome can be realised.

"These are high quality jobs and very important to an area like the Borders. I hope that we will see a positive outcome for all those workers and their families concerned about this latest news."

The joint administrators BDO LLP have confirmed that all 176 employees across the three sites have been retained while it tries to secure a buyer.

Ballantyne Cashmere was founded in Innerleithen in 1921 but changed its name to JJ & HB 1788 Cashmere Mills Limited in October 2008.

It has a reputation as the world's finest manufacturer of cashmere sweaters and knitwear and exports its products to more than 50 countries around the globe.

Local Conservative Councillor Gavin Logan, who revealed he was reeling from the announcement, said: "I think it's an absolute disaster for Innerleithen and Galashiels and I really hope a buyer can be found so that all these jobs can be saved."

Borders Liberal Democrat MSP Jeremy Purvis admitted there was "significant concern" among workers about the security of their jobs. But, with Ballantyne boasting busy order books, he insisted it was still a "highly viable" business.

Mr Purvis, who revealed he has already spoken to the administrators, said: "The operation of the mill as a world class cashmere manufacturer is critical for the local economy.

"The company going into administration is of significant concern for all the staff involved and I am happy to offer any advice and assistance to them.

"The mill and the business is highly viable and the administrator has assured me that with strong order books and with the current assets that exists the business should be able to be sold as a strong entity and this is something that I strongly encourage."

Politicians of all parties have agreed to convene a multi-agency meeting to discuss the mill's future.

And they have urged Scottish Borders Council and Scottish Enterprise to lend their support.

Mr Purvis said: "As the business is on the market it is incumbent on all public bodies to ensure that there is the best environment possible for a prospective buyer.

"I am pleased that the administrator has agreed to meet and I will work on this with all the local bodies. There will of course be further discussions on the background to this but the priority for the moment is to support the staff and the ongoing viability of the business.

"The mill is of huge importance locally and every effort must be made to ensure its future."