Scottish cashmere manufacturer Dawson International has fallen into administration after being requested to pay a £129m debt in its pension scheme.
KPMG has been appointed as administrator after the firm failed to sort out issues with a deficit in its pension scheme. The company, which employs 180, with many based at Barrie Knitwear in Hawick, will continue to trade as normal at the moment.
Last week Drapers reported that the former owner of Pringle was forced to suspend its shares.
The company’s shares fell in July after announcing that the pensions regulator and the Pension Protection Fund (PPF) had rejected its attempt to put its pension plans into a protection fund. KPMG, said the firm collapsed with a pension debt of £129m, which was the amount outstanding after the PPF refused to take on the liability.
David Bolton, chairman of Dawson, said: “This is a sad day for Dawson International, and for British manufacturing.
“To see this 140-year-old company forced into administration due to the PPF’s decision is deplorable, a direct consequence of a flawed process lacking in common sense and transparency.”