Receivers have been called in to the Hollas Group, based at Altrincham in Cheshire.

The company manufactures and imports clothes for a range of high street stores, including top names such as Next and the Burton Group.

In the past three years, Hollas has faced mounting debts. The firm blames cheap imports and the strong pound for its downfall.

Two factories - at Blabey in Leicestershire and in North Shields - may be closed.

Three other textile firms, all based in Scotland, are also in trouble.

The Sweater Shop, which employs 700 people across the UK, has called in the receivers.

It said its 78 stores will continue to operate as a buyer is sought. But receivers Price Waterhouse says it will be harder to sell the manufacturing part of the business.

Dawson International, which employs around 3,000 people in Scotland, announced it may seek a buyer for the business after a difficult trading year. The group said the strength of sterling made it vulnerable.