According to the company, the option is being considered because the previous restructuring programme and ongoing sales performance had failed to produce the projected financial results. It said trading remains difficult, and income has not increased enough to maintain staffing levels. “In an attempt to avoid compulsory redundancies the management will aim to meet with elected staff representatives during the consultation period in an effort to find a workable solution,” the company concluded.

Earlier this year, another Scottish knitwear manufacturer from the region, Hawick Knitwear, entered administration with the loss of more than 100 jobs.

Difficult years

Peter Scott Knitwear, known in Hawick as Pesco, was established in Hawick in 1878 to produce luxury cashmere goods. The company traded successfully for more than a century, but ran into difficulties when the UK economy entered recession.

In 2009 it struck a multi-million-pound deal with Peek and Clopperberg, but in May 2010 the firm entered administration with the loss of 120 jobs. The company has been a key employer in Hawick, Scotland’s high quality knitwear manufacturing centre, for more than 130 years.

Job losses

In July 2010, the company was bought by Northamptonshire headquartered coat manufacturer Gloverall Plc, saving 20 jobs and three years later £250,000 was invested in new machinery.

The company has been building up the knitwear manufacturers’ work force over the few years and had 100 members of staff at the Buccleuch Road Mill in 2013. But the latest announcement puts the majority of those employed by Peter Scott at risk of redundancy. The company currently employs 63 staff with 48 directly involved with production and would be affected by the change.

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Scottish knitwear manufacturer bought by coat manufacturer

Hawick Knitwear enters administration with more than 100 job losses