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Textiles mill to axe 132 jobs

Troubled firm, which went into administration last month near Peebles, is to cut majority of its workforce.

20 January 2010 15:59 GMT

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Textiles mill to axe 132 jobs

Textiles: Firm to axe jobs

More than 130 jobs have been lost at a troubled textiles mill in the Borders.

The redundancies leave just 44 staff at Borders-based JJ & HB Cashmere Mills, which went into administration earlier this month.

The firm was said to be a "going concern" at the time and had received expressions of interest from other companies.

The business operates out of Caerlee Mill in Innerleithen, near Peebles, where the remaining staff have been kept on.

But leaseholds in Coatbridge and Galashiels have been closed, leading to a total 132 redundancies.

James Stephen, of administrators BDO LLP, said: "Due to the loss of a major customer, it is highly regrettable that we've had to take this decision.

"However, we still hope to sell the remaining business and assets as a going concern, and have already received an expression of interest in this respect."

The redundancies were revealed as the Scottish jobless total hit 202,000 - up by 61,000 in a year.

Jeremy Purvis, Liberal Democrat MSP for Tweeddale, Ettrick and Lauderdale, 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 today.

"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."

Administrators were appointed to the firm and its subsidiary, JJ & HB Cashmere Mills Coatbridge Ltd, on January 7.

Finance Secretary John Swinney said: "This is an extremely disappointing announcement, particularly for the affected staff and their families.The Scottish Government, Scottish Development International and Scottish Enterprise have been working hard with JJ & HB Cashmere to try to secure a sustainable future for the firm.

"I liaised directly with the administrator and interested parties to try to facilitate a solution that would protect employment in the Borders, so it's very disappointing to hear that the firm has announced redundancies today.

"We will continue to examine potential opportunities for the site which could safeguard jobs."

Advice and support for those affected by the job losses will be provided through Government agencies, he added.

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