Textile company Thomas Smith and Co has put its Kirkburn Mill in Peterhead on the market as receivers attempt to negotiate an agreement to salvage the business.

The company is said to be planning to sell off the factory and shift production to its other plant in Mintlaw.

Thomas Smith laid off over 60 employees last year as it implemented a restructuring strategy. It is as yet unknown how many of the Kirburn Mill's 50 workers will keep their jobs.

Receivers PricerwaterhouseCoopers, who were assigned to the business in December 2004, say they want to sell it as a going concern.

The company manufactures raw wool to make yarn under the trade names Rennies, and Alexanders of Scotland.