Caerlee Mills, one of the oldest textile mills in Scotland, has filed for provisional liquidation, after a slowdown in demand led to trading losses and increasing cash flow pressures.

The company, which manufacturers cashmere products at its facility in Innerleithen, was forced to call in provisional liquidator KPMG yesterday (26 March). Some 36 people are employed by the firm.

KPMG said it will continue to trade the business while it looks for a buyer.

Blair Nimmo, joint provisional liquidator and head of destructuring for KPMG in Scotland, said: "Caerlee Mills has a rich history dating back more than 200 years and remains an attractive acquisition for the right buyer.

"The company has been facing difficulties following trading losses and increasing cash flow pressures, mainly resulting from a reduction in orders. There remains an excellent opportunity to acquire a well known business which manufactures a top quality product and we are hopeful a buyer can be found."  

Meanwhile, a KPMG spokesperson told just-style: "KPMG is hopeful, after conducting an exhaustive search for interested parties, of concluding a sale. It is likely those parties interested in acquiring the company will have experience in the textiles and fashion industries."

The existing company was formed in 2010 after a management buy-out from the administration of JJ&HB 1788 Caerlee Mills, which was better known under its former name Ballantyne Cashmere. As a result, some 132 jobs were cut after leaseholds in Coatbridge and Galashiels were closed.