A 100-year-old Scottish cashmere manufacturer, Dawson International - which sells its products across the world - has been placed in administration.

The business, which has been trading profitably, faces problems over pension liabilities, which led to the administration. The £10m turnover company exports 90% of its products. It will remain operating while a buyer is found and the 180 employees are not affected.

Blair Nimmo and Gary Fraser of KPMG have been appointed joint administrators of Dawson International and its UK subsidiaries, Dawson International Holdings (UK) and Dawson International Trading.

It followed the lodging of notices of appointment of administrators at the Court of Session in Edinburgh by the companies' directors.

Dawson International had been in negotiations with the Pension Protection Fund (PFF) and the Pensions Regulator to seek a negotiated entry of its UK defined benefit pension plans into the PPF. This would have meant the PPF assuming responsibility for the pension plans in return for a cash payment, loan note and equity stake. These negotiations were unsuccessful.

The Pension Scheme Trustees then served notices on Dawson requesting payment of the Section 75 debt of £129m by 19 August 2012, which the companies could not afford to meet.

Dawson International is one of the world's leading cashmere businesses. Its main trading subsidiaries are based in Hawick in the Scottish Borders and in Boston in the US.