Published: Wednesday, 20th January, 2010 5:12pm

Workers left reeling as cashmere manufacturer sheds 132 jobs

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UNCERTAINTY surrounds the future of one of the Borders oldest textile firms after 132 workers were made redundant this week.

JJ & HB Cashmere, formerly known as Ballantyne Cashmere, announced the cuts at its factory in Innerleithen on Wednesday - two weeks after it entered administration.

It confirmed it has now closed it sites at Galashiels and Coatbridge.

However, 44 staff have been retained as the joint administrators BDO LLP continue to seek a new buyer for the business.

Councillor Vicky Davidson, Scottish Borders Council's Executive Member for Economic Development, said: "This is a distressing outcome for all concerned and comes as a very deep blow for Innerleithen and indeed the Borders.

"An emergency meeting took place with the administrators which I attended last Monday to make sure all possible avenues were explored to save these jobs and follow up meetings have taken place almost every day since.

"The Council and Scottish Enterprise put every support measure available to us on the table and we will continue to work with the administrator to salvage what we can for Innerleithen from this very disappointing outcome."

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.

However, earlier this month, the Italian-owned firm, which operates from Scotland's oldest continually operating textile mill at Caerlee in Innerleithen, announced it was entering administration. It blamed "difficult trading conditions".

Local Liberal Democrat MSP Jeremy Purvis said: "This is devastating for all the affected staff in Innerleithen with the concern for those in Galashiels and Coatbridge also.

"I have worked hard with the local agencies to press the case for a certain future for all jobs and I am deeply sorry for the constituents affected by the announcement. The retention of the 40 staff allows continued discussions to take place between interested parties and the administrator about keeping ongoing operations. I will make every effort to try and help secure a future for production locally.

"I am making contact with the appropriate bodies today concerning the PACE operations (Partnership Action for Continuing Employment). This is to ensure that all of the staff affected is aware of the support and advice that is available to them. I will also offer any support I can to anybody affected.

"The focus of my work is also to support the efforts to secure continuing operation and I am absolutely committed to do this."

The Border Telegraph understands that American clothes firm Brooks Brothers, which already owns a 25 per cent share in the business, had expressed an interest in buying the business.

However, it sought assurances from the Scottish Government that the country's beleagured manufacturing sector would be given adequate support before making an offer.

South of Scotland SNP MSP Christine Grahame said: "This is desperately sad news for those Ballantyne workers who have lost their jobs. It comes on the same day that the total jobless figure rose above 200,000 across Scotland.

"The UK economy, which has been so badly run by the Labour Government in London, remains the only major Western economy still in recession. The cost of that economic mismanagement has been job losses in every part of Scotland, including, regrettably the Scottish Borders.

"I have today been in contact with Scottish Enterprise to ensure that the relevant support teams are put in place to assist those who will lose their jobs. I understand that the specialist PACE team will be holding an information and advice event at the site on Monday.

"Even as these latest, highly job losses were being announced the Labour Party, the Liberals former coalition partners, were making veiled threats in the Scottish Parliament to withdraw future investment in the Scottish Borders and other rural areas and divert it to their own pet schemes. They have completely lost touch with the economic realities and mess which they have caused."