The cashmere company Hawico plans to lay off about 15 staff at its Trinity Mills base, just weeks after Hawick Knitwear plunged into administration with the loss of more than 100 jobs.

The Scottish National Party MP Calum Kerr said a second jobs blow for the textile industry in the Scottish Borders town of Hawick has come as a “particular shock”, The National reports.

Retaining competitiveness 

Hawico, previously know as Hawick Cashmere Company, dates back to 1874. Hawico said that in order to retain a “competitive manufacturing cost base”, it had made “significant investments in the very latest knitting technology over some time”. The company has been investing in Shima Seiki Wholegarment technology, which makes seam free knitwear, for some years now.

In a statement, Hawico said: “This has meant that there is a current need to reduce the number of employees in the business,” The directors of Hawico have announced that they have commenced consultation with employees regarding a potential redundancy situation. “It is envisaged that approximately 15 people could be affected.”

Hawick Knitwear

Earlier this month, Hawick Knitwear went into administration with the loss of more than 100 jobs. The administrators are trying to save the remaining 56 jobs.

The Scottish knitwear manufacturer was founded in 1874 and it has been experiencing difficult trading conditions in recent years due to increasing production costs and reducing margins.

Recent mild winters have also been blamed for reduced demand for heavier winter garments. Attempts to secure new investment proved unsuccessful leaving the director with no option but to place the company into administration.

Blow to local economy

Kerr, MP for Berwickshire, Roxburgh and Selkirk, said it was another blow to the local economy. He added: “This announcement is a particular shock to the town as it comes only days after Hawick Knitwear went into administration with a large number of job losses.”

“These are both long-established companies and very much part of the community. I believe they are both also viable. Hawico is already catering for the high-end market but needs to make itself more efficient in order to maintain and grow its profitability. Both these companies have a long history, a strong brand and fantastic workforces. They deserve to succeed and I will do everything I can to make sure that happens.”

Meanwhile, owners of one of the three Harris Tweed mills in Lewis, Carloway Mill, plan to sell the business rather than go into voluntary administration. The mill employs 27 people.

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Hawick Knitwear enters administration with more than 100 job losses