UK textile company Border Weaving Company has been placed in administration, according to a statement.

The company, based in Selkirk, was only launched earlier this year after the owners acquired Selkirk's oldest mill, Heather Mills, from The Edinburgh Woollen Mill Group.

Border Weaving, which employs 31 staff, has appointed Kenny Craig and Dilip Dattani of Tenon Recovery as joint administrators.

Its administration has been principally caused by cash flow problems, a contraction in export markets and withdrawal of credit insurance, they said.

Kenny Craig said: "We will complete a number of outstanding orders whilst marketing the business for sale as a going concern. Border Weaving Company has a good client base, a highly trained, experienced workforce.

"We think that the company could be of interest to a business already operating in the textile sector and looking to grow through acquisition, or to an entrepreneur interested in moving into high value textile manufacturing."

In addition, the directors of Riverside Spinning Mills, a sister company of Border Weaving Company, have called a creditors meeting with a view to appointing liquidators.

Riverside Spinning Mills employs 21 staff.

The company, which specialises in the spinning market, has been incurring considerable losses for some time and said there has been a marked drop in orders, a cancellation of credit insurance and withdrawal of working capital.

It too has appointed Kenny Craig and Dilip Dattani - as joint liquidators and to undertake an orderly closure of the business and sale of the assets, it was added.