Published: Friday, 22nd January, 2010 11:26am

Dark day for Innerleithen

The jobs of 132 mill workers in Innerleithen have been lost.

Administrators BDO LLP announced the redundancies at the former Ballantyne's mill on Wednesday.

Only 44 staff will be retained as the administrator continues to seek a new buyer for the business.

JJ & HB, formerly Ballantyne Cashmere, one of Scotland's oldest cashmere firms went into administration earlier this month.

Administrator James Stephen, 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."

It was hoped last week that American clothes firm Brooks Brothers, who own a 25 per cent share in the company, would take over at the plant.

But negotiations are believed to have fallen through.

The US firm was seeking assurances from the Scottish Government that Scotland's beleagured manufacturing and textile sector would be given adequate support before any offer was made.

Scottish textiles exports have fallen by over 10 per cent in recent months as a consequence of the economic downturn.

Many Borders textile companies have full order books but are experiencing severe problems in securing export insurance and essential credit facilities.

Funding for training and skills development has also come under severe pressure.

One mill worker, who we agreed not to name, said: "This is mismanagement on a massive scale. We constantly have full order books but can't find the money to buy yarn to even make the garments.

"I've got a wife and child to support and there are no jobs to be found anywhere around here. I'm devastated to be honest."

Tweeddale, Ettrick and Lauderdale MSP Jeremy Purvis, spent all of last week in talks with administrators in the hope of finding a solution.

He said: "This is devastating for all the affected staff in Innerleithen.

"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.

"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.

"I am also making contact with the appropriate bodies concerning the PACE operations (Partnership Action for Continuing Employment). This is to ensure that all of the staff affected are aware of the support and advice that is available to them. I will also offer any support I can to anybody affected.

"The focus of my work is also to support the efforts to secure continuing operation and I am absolutely committed to do this."

Councillor Vicky Davidson, Scottish Borders Council Executive Member for Economic Development, said: "An emergency meeting took place last Monday which I attended with the administrators to make sure all possible avenues were explored to save these jobs and follow up meetings have taken place almost every day since.

"The Council and Scottish Enterprise put every support measure available to us on the table and we will continue to work with the administrator to salvage what we can for Innerleithen from this very disappointing outcome."

Innerleithen Community Council chairman, Ross McGinn, was equally devastated by the news but he was in bullish mood as to how to rectify the situation.

He said: "People in Innerleithen have been dreading this for some time but it still doesn't prepare you for it.

"There are many couples who both work in the mill and others who may have worked there all their adult life. It's a huge blow.

"It's now time for politicians to stop talking and to get acting on helping this area by pumping some money into it."

Tweeddale MP David Mundell said: "It is very disappointing that it was not possible to reach a deal on selling the business as a whole and securing all of the employees' jobs.

"I am very disappointed for everyone who has lost their job and I am in touch with JobCentre Plus and all the relevant authorities to ensure that they are receiving all the support that they can.

"I have been in touch with John Swinney (finance secretary) because it is vitally important that everything possible is done to retain textile skills in the Borders."