The famous clothing company is to close its Borders site

Tyneside-based J Barbour & Sons has confirmed plans to shut the Tweedbank site, near Galashiels, on 31 January.

In a short statement it said that after a meeting with union Unite and "lengthy discussions and negotiations" a deal had been agreed to close the plant.

The Borders factory was opened 12 years ago and produces classic knitwear and weaving.

Last year the firm - which makes wax jackets for the Queen - announced that it was seeking voluntary redundancies at the site.

That was due to plans to reduce production at its Galashiels operation.

Last October the firm were looking for voluntary redundancies amongst the workforce, but there was no indication that they were going to close the factory completely Christine Grahame MSP

At the time the company said it hoped the reduction would be temporary.

However, after talks with unions it has decided to close the factory completely.

Unite union regional industrial organiser Tony Trench said, "Despite exhaustive negotiations the management at Barbour's have remained firm in their view that production is no longer viable at Tweedbank and the site will close on 31 January 2008.

"We have subsequently agreed a redundancy package with the employer which we will now recommend to our members at a meeting on Monday morning."

South of Scotland SNP MSP Christine Grahame said she was shocked by the news.

"Last October the firm were looking for voluntary redundancies amongst the workforce but there was no indication that they were going to close the factory completely," she said.

"I am going to determine what has happened in just a few short months that has led to the company into making an announcement to close the Borders factory completely.

"I will also be asking why there appears to have been no attempt made at seeking support from the Scottish Government before the announcement today."

She added that it was "imperative" that a proper support package was put in place for the workers affected.

J Barbour & Sons was formed in 1894 in South Shields by a farmer's son from Galloway, in south west Scotland.