The union is trying to establish what has happened at the firm

Staff at MA Cashmere in Innerleithen have been told that the company will close with immediate effect.

The T&G union is to host a meeting in the town to discuss the shock development.

The union has tried to speak to the owners to discover if receivers have been appointed. Nobody from the firm was available for comment.

The company was founded in 1971 by Murray Allan and gained a worldwide reputation for its innovative hand-knitted designs.

He retired in the 1980s and the business went through some difficult times.

This is deeply disappointing news and a further blow for the textile industry in the Borders which has suffered a great deal recently from job losses in particular Derek Brownlee MSP

Last year there was a six figure investment which it was believed would safeguard the jobs of the existing workforce.

However, the collapse of the firm has resulted in the loss of 23 jobs with immediate effect.

Tony Trench, T&G regional organiser, said it was "disgusting" how the workers had been treated.

The union has been trying to establish what exactly has happened at the firm.

Mr Trench said the workers had been told the business was finished.

Nobody from MA Cashmere Ltd was available for comment at their factory in the Morningside area of Innerleithen.

'Economic pain'

Local Liberal Democrat MSP Jeremy Purvis said he was shocked at the announcement.

"Innerleithen is a strong community but job losses on this scale have a disproportionately negative impact," he said.

He said the textiles industry was undergoing "painful change" and stressed the need for further inward investment support.

South of Scotland Tory MSP Derek Brownlee said he was shocked by the development.

"This is deeply disappointing news and a further blow for the textile industry in the Borders which has suffered a great deal recently from job losses in particular," he said.

That was a view echoed by his SNP counterpart Christine Grahame.

"Once again the vulnerability of the economic strategy being pursued in the Borders is leading to further job losses," she said.