Struggling north-east  textile mill Thomas Smith & Co has been placed into receivership. The company's 80 employees in Peterhead and Mintlaw have been told that there will be no immediate redundancies.

It is believed that a potential deal with supermarket giant Asda to sell its Peterhead headquarters was scrapped when Asda chose another site, leading to further discontent within the company.

The company believes that a sale of the Peterhead site would allow it to restructure and return to stability.

1818-established Thomas Smith & Co processes raw wool to produce yarn under the trade name Rennies, and Alexanders of Scotland.

60 workers lost their jobs in summer 2004 as the company embarked upon a programme of restructuring.