9 laid off at textile firm as hunt goes on for buyer

ADMINISTRATORS have laid off nine staff at a Scottish firm that supplies woollen fabrics and knitwear yarns to fashion houses including Gucci, Prada, Stella McCartney and Ralph Lauren.
By The Newsroom
Published 11th Feb 2011, 15:46 BST
Updated 11th Feb 2011, 22:07 BST

Ken Pattullo and Paul Dounis of accountancy firm Begbies Traynor were appointed as joint administrators to textile group Smiths of Peterhead on Tuesday.

The 192-year-old firm - one of the oldest in Scotland - had employed about 50 staff.

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It slipped into administration after failing to reach an agreement with a major creditor over payment of outstanding debts amounting to almost 120,000.

Dounis said yesterday: "These redundancies were unavoidable and necessary to protect the remaining jobs as there is limited funding available.

"It is still too soon to be certain of the outcome, but a number of interested parties have already come forward to express serious interest in acquiring the business as a going concern.

"We are working with these parties to ensure the best possible arrangement can be secured to ensure all remaining jobs are safeguarded, and that the business can have a stable future."

According to the latest accounts for the year to 31 July, the company had net assets of 510,000. Earlier this month a winding-up order was issued against the business after an application by HM Revenue & Customs over unpaid debts.

Smiths of Peterhead has had a presence in Scotland since 1818. The firm was founded by two brothers from Yorkshire who had travelled to Scotland looking for work in textile mills.

Related topics:Peterhead