Knitwear firm proposes job cuts

Pringle is one of the most iconic Scottish knitwear brands

Borders-based knitwear company Pringle of Scotland could stop manufacturing in Hawick, with the loss of 80 jobs.

The firm, owned by the Fang Brothers, is proposing to keep a head office and sales function in Hawick, with about 30 employees.

Consultation on redundancies has begun between Pringle and the GMB union.

The firm said closure of the manufacturing operation was something it would have to consider in the light of a changing market.

The business was taken over by the Fang Brothers in 2000 and since then it has invested �45m in Pringle. However, last year the company lost �9m.

There are some hard decisions which may have to be taken for the long-term development of the brand Douglas Fang Pringle CEO Pringle's long links with Hawick Pringle plans: Reaction in quotes

Chief executive Douglas Fang said it had "strongly supported" the Hawick site over the last eight years.

"We have to consider ways to improve the performance of the business and closure of the manufacturing operation at the plant is, very regrettably, something we must consider," he said.

"Any decision to close the operation is not one we would take lightly, but due to changing customer demands and the competitiveness of the industry, we have to consider this possibility."

He added that it was important to respond to the "changing nature of the market", which was "extremely competitive".

"We are determined to restore Pringle to its rightful position as a truly worldwide luxury fashion brand, but there are some hard decisions which may have to be taken for the long-term development of the brand," he said.

Pringle has links with Hawick which date back nearly 200 years

The move has been described as "devastating" by Roxburgh and Berwickshire MSP John Lamont.

"This announcement is bad news for scores of Pringle employees, their families, the local textile industry and the wider community," he said.

"My most immediate concern is for the scores of workers who are in danger of losing their jobs."

He said everything must be done to help staff to find suitable employment in the area.

In addition, Mr Lamont said measures should be taken to try to safeguard the 30 remaining Pringle jobs and ensure other firms did not follow suit.

The main reasons for the Hawick plant's difficulties are being attributed to high costs and its "coarse-knit" cashmere product.

Long history

An industry source said: "The way the market is going is towards fine knits.

"They don't make them here."

Competition came not from the Far East but from Italy, where manufacturing costs were about 30% lower than in Scotland, the source added.

Pringle's history in the Borders dates back to 1815, when it was founded in Hawick by Robert Pringle.

The firm now hopes to be able to buy some products from other manufacturers in Scotland on an ongoing basis.

Pringle has not received any development grants from the public sector since the Fang Brothers took over, the company said.

The number of people claiming unemployment benefit in the Borders in May was 867 (1.3%), of which 230 were in Hawick, the Department for Work and Pensions said.

E-mail this to a friend

Printable version