A new cashmere firm has bought the assets of Hawick Knitwear following its fall into administration in January.
Lyber 2016 has bought the plant, machinery, the Hawick Knitwear brand and its intellectual property, administrator KPMG has confirmed.
Lyber 2016 was incorporated on February 9 with Edinburgh-based AS Company Services listed as secretary, Hong Kong-based merchant Wai Cheung Chu as director and former Hawick Knitwear brand director Arthur Rennie as its company director.
It is owned by Hong Kong-based Eric Chu, whose family owns Chinese cashmere supplier Artwell.
The company plans to initially employ between 30 and 40 people.
“We would like to thank everyone involved for their patience and perseverance during what has been a challenging sales process,” said Blair Nimmo, joint administrator and head of restructuring at KPMG.
As previously reported by Drapers, Lyber 2016 held a recruitment drive at a cafe in Hawick at the end of February.
Hawick Knitwear, which has a manufacturing heritage dating back to 1874, designs and manufactures cashmere and wool-based knitwear from its facility in Hawick in the Scottish Borders.
KPMG said the company had been experiencing difficult trading conditions in recent years due to increasing production costs and reducing margins. Mild winters have also taken their toll on the firm.
Its most recent trading update shows sales increased 9% to £9.3m for the year to March 31 2014, but it made a loss after tax of £459,818 compared with a profit of £1,336 in 2013.