Cashmere manufacturer Dawson International is edging towards administration after it struggled to deal with its burgeoning pension deficit.
The Scottish-based business, which sells cashmere to Chanel, Hermes and Dior, has failed to reach a deal with the Pension Protection Fund (PPF) and the pensions regulator to cover its pension deficit, which was last year valued at about £50m.
The once owner of Pringle and Ballantine has warned that it may be forced to go into administration after the pensions fund failed to agree to an arrangement involving it taking a stake in the business.
The company employs less than 200 people but almost 3,000 are signed up the scheme.
Dawson International was founded by Bradford mill owner Joseph Dawson in the 1870s. It has a knitting factory in Hawick in Scotland and an importing business in the US.
Dawson International said in a statement: “Ultimately if no agreement can be reached which is based on the continued trading of the group’s businesses, and a binding schedule of contributions is served on the company which the company is unable to fulfil in the specified timescale, the board would have no alternative but to consider appointing administrators for all or part of the group.”