An historic Scottish textiles factory which was the preferred supplier of bespoke cricket sweaters to the MCC has gone into provisional liquidation with the loss of over 40 jobs, citing rising import costs as much of its material was sourced from the EU
Paul Dounis and Steven Ross of RSM Restructuring Advisory have been appointed provisional liquidators of Balmoral Knitwear (Scotland) Ltd. Based in Ayrshire, the knitwear manufacturer supplies both plain and embroidered corporate uniform, school wear and work wear.
Founded in 1895, Balmoral saw turnover in recent years reach £2m and its clients included John Lewis, Harrods and Scottish schoolwear retailers such as Aitken & Niven.
RSM said the company was unable to continue due to increased competition from low cost garments sourced overseas, the increasing costs of raw materials and the recent devaluation of the pound. Despite concerted efforts to find a buyer or investor to rescue the business, the management were left with no alternative than to place the company into provisional liquidation.
Paul Dounis, RSM partner and joint provisional liquidator, said: ‘Despite exploring possible options to rescue the business, the management team has taken the very difficult decision to close the business. The management team have expressed their deep condolences to all staff who have been affected by the closure.
‘The need for organisations to reduce costs and seek the lowest possible price for goods, often from overseas, has led to another blow for the Scottish knitwear industry. The Balmoral name is well known in the sector and we would ask any parties with an interest in acquiring the business to get in touch with us as soon as possible.’
Report by Pat Sweet
