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Scottish textile mill enters liquidation

Date Added: 28/03/2013  

A Scottish textile mill - one of the oldest of its type in the world - has taken steps towards liquidation as a result of its ongoing financial difficulties.

Caerlee Mill in the Borders dates to 1788, although the firm currently in control of the mill - Ballantyne Cashmere - was formed only a few years ago.

According to a report by the Daily Record, 36 people are employed at the site and the company has a turnover in the region of £1 million.

But a drop in orders has left the mill - which produces hand-made knitwear and cashmere clothing - in danger of being forced to close down.

Blair Nimmo, head of restructuring for KPMG, was confirmed as the joint provisional liquidator for the company and he stated Caerlee Mill has a strong and rich history, which should make it an appealing proposition for a potential buyer.

"The company has been facing difficulties following trading losses and increasing cash flow pressures, mainly resulting from a reduction in orders," he said, adding: "There remains an excellent opportunity to acquire a well-known business which manufactures a top-quality product and we are hopeful a buyer can be found."

Mr Nimmo added that the plan is for the mill to continue to trade for as long as it is possible to do so while the provisional liquidators seek a buyer to come in and take over the firm.

The mill is Scotland's oldest continually operating mill and if it goes into liquidation it will be a blow for the sector in the country.

Caerlee Mill is the latest textiles organisation in Scotland to be facing financial problems, after Tom MacLennan from RSM Tenon in Edinburgh revealed that 25 members of staff at Campbell's Contract Curtains have been made redundant as the firm has gone into liquidation.

The company supplied handmade curtains, blinds, pelmets, cushions and soft furnishings to some of Scotland's best hotels, including Turnberry, Gleneagles and the Caledonian Waldorf Astoria and Balmoral in Edinburgh.

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Posted by Michael Beam

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