A KNITWEAR firm which made school sweaters for Prince George’s has collapsed, bringing to an end 120 years of textile history.
Balmoral Knitwear, based in Galston, Ayrshire, specialised in high end uniforms for work and school, and counted Harrods and John Lewis among its customers.
However, it was hit by tough competition from cheap overseas suppliers, rising costs of raw materials and a slump in the value of the pound.
Despite turnover in recent years hitting £2m, the business finally unravelled under the pressure and has now been placed into provisional liquidation with the immediate loss of 42 jobs.
According to provisional liquidator RSM, the move came despite concerted efforts to find a buyer or investor to rescue the firm.
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Inside the firm's loom room
Paul Dounis, Joint Provisional Liquidator, said: “Despite exploring possible options to rescue the business, the management team has taken the very difficult decision to close the business.
“The management team have expressed their deep condolences to all staff who have been affected by the closure.”
The business was founded in 1895 by the Mackie family and spanned five generations.
While it didn’t trumpet its royal connection, it supplied bespoke knitwear to Yorkshire-based Perry Uniform, which in turn supplies school uniforms to Prince George’s school, Thomas’s School Battersea, as well as some of the UK’s leading independent schools.
On the young royal’s first day of school last September, the Galston knitwear business tweeted an image of the four year old wearing his £25 navy V-neck pullover with red trim and embroidered school logo with the comment “Very good jumper that. Just saying”, following it with the hashtags “made in Britain” and “knitwear”, “schoolwear”.
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Five generations of the same family led the firm
Jamie Mackie, Managing Director of Balmoral Knitwear said: "This is not just a tragedy for the family that owns the business, but for all the employees who have been with us for many years, most of them for 20 years.
"We are leaving no stone unturned to do what we can to find them alternative employment in the area."
"While the manufacturing side of the business has ceased trading, the mill and coffee shop remain open."
Spokeswoman Julie Mackie released a statement, adding: "We are very sorry to advise you that the manufacturing side of Balmoral Knitwear (Scotland) Ltd is no longer in business after trading for 122 years.
"It is a very sad day for the Mackie family and all of our loyal staff. We appreciate your patience and understanding at this very difficult time."
Bernard Bunting, managing director of Perry Uniform said news of Balmoral Knitwear’s closure was “a tragedy”.
He added: “Balmoral has faced a very challenging situation and I’m very sad about that.
“Their particular niche has quite a lot of challenges, with significant issues in the past couple of years including significant price inflation which is very difficult to resist.”
RSM said the company was unable to continue due to “increased competition from low cost garments sourced overseas, the increasing costs of raw materials and the recent devaluation of the pound.”
Mr Dounis said employees had been made redundant with immediate effect.
He added: “We are working with local and national organisations to support those employees who have been made redundant to process claims as quickly as possible.
“The need for organisations to reduce costs and seek the lowest possible price for goods, often from overseas, has led to another blow for the Scottish knitwear industry.
“The Balmoral name is well known in the sector and we would ask any parties with an interest in acquiring the business to get in touch with us as soon as possible.”
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The firm had a long history
Balmoral Knitwear stocked more than 40 lines, and also offered bespoke knitwear with a choice of 1000 colours of yarn.
Its skilled embroidery specialists had more than 70 years of experience, and it was capable of producing more than 2000 pullovers, cardigans, scarves and hats every week from its Ayrshire factory, with links to partner European factories for larger contracts.
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