Knitwear business Peter Scott has gone into administration after attempts to find a buyer for the Scottish company foundered.

Blair Nimmo and Gary Fraser of KPMG have been named as joint administrators of the Hawick-based textiles producer, founded in 1878, and are seeking a buyer for its business and assets.

But 119 out of the 140 employees have already been made redundant, leaving the remainder to work with the administrators and to trade on a restricted scale.

“Despite having an excellent reputation and brand, Peter Scott & Company, like many textile businesses, has suffered from increased foreign competition combined with recessionary pressures and the reduction in spending on luxury items, which appear to be contributory factors behind the company’s financial difficulties,” said Nimmo.

He added that company directors had previously been in talks with several parties on a possible sale of the business.

“These discussions were not successful and we will now approach these parties, and others, with the aim of achieving a sale,” Nimmo said.

Peter Scott is a maker of premium clothing, particularly cashmere, lambswool and blended knitwear, and has long had a reputation for its golf-themed apparel.