Hawick Knitwear deal secures 32 jobs - KPMG

Administrator KPMG has announced the completion of a deal to sell Hawick Knitwear in a deal that will secure employment for 32 people at its Borders base.

Lyber 2016, a group formed by Hong Kong-based Artwell, is to purchase some assets, the firm’s name and intellectual property, the global services firm said.

Hawick Knitwear, with a manufacturing heritage dating back to 1874, employed more than 170 staff when it went into administration in January.

Administrators wished the buyer “every success” in their new venture.

Blair Nimmo, joint administrator and head of restructuring for KPMG in the UK, said: “We would like to thank everyone involved for their patience and perseverance during what has been a challenging sales process.

“We are very pleased to have achieved a sale of certain Hawick Knitwear key assets.”

Conservative MSP for Ettrick, Roxburgh and Berwickshire, John Lamont, said: “We need to wait for the details of the purchase before there is a real reason to celebrate,” he said.

“I will be looking for a commitment from the buyer that they will continue operating from Hawick and employing local people for the long term.”

He repeated his call for an enterprise zone to be created in the town.

The SNP’s South of Scotland MSP Paul Wheelhouse and Berwickshire, Roxburgh and Selkirk MP Calum Kerr also welcomed the announcement.

Paul Lewis, managing director of Scottish Development International - the international arm of Scotland’s enterprise agencies, said the deal was “encouraging news” at a “very difficult time for Hawick and the textile industry in particular”.

“I know this investment by Lyber 2016 Ltd won’t immediately fill the gap left by Hawick Knitwear but it signals a significant investment in the area and will secure employment for 32 people,” he said.

He said they would continue to work secure further investment in the textiles industry and the area.

Welcoming the sale, Business Minister Fergus Ewing said: “This is great news for Hawick and the textile industry in the Borders.

“The sale is testament to the quality of the product and the demand for knitwear from this part of Scotland. While the number of staff is expected to be lower than previously employed at Hawick Knitwear, I am pleased that operations will continue.

“We worked closely with KPMG and Scottish Borders Council to identify potential investors. Scottish Enterprise is supporting Lyber 2016 Ltd to start up the venture and will identify any other business support that could help grow the operation and ensure a long term future.

“I look forward to publication next week of an action plan for Hawick which will set out how working together the public and private sector can ensure a positive future for the town.”