THE BELEAGUERED Scottish textile industry suffered further blows yesterday just hours after it was announced the Sweater Shop had called in the receivers.
Dawson International faces large job losses and may seek a buyer, and Grampian Brands is to shed 120 jobs from sites in Coatbridge and Lanark.
Union leaders expressed concern at the developments, particularly the possibility of hundreds of job losses, and there were calls for Government help. But experts drew back from describing the industry as in a state of crisis.
Two of the three firms blamed the strong pound and a corresponding slump in export sales.
A likely minimum wage of #3.60 was not expected to be a problem in Scotland, where pay in the industry tends to be above that.
The Dawson group employs 3000 workers in Scotland, 2000 of them in the Borders, which is facing its worst economic crisis in 30 years.
Chief executive Peter Forrest warned that ''substantial'' job losses were inevitable given the current state of the industry and after a difficult trading year.
Chairman Derek Finlay said the situation had arisen because the Dawson group was ''vulnerable to the effect of strong sterling and uncertainty in Asia'', one of its key export markets. More than 800 of the Dawson employees are based in the Borders with Pringle, who laid off 290 at Christmas.
Borders MPs Archy Kirkwood and Michael Moore are meeting Dawson executives on Monday and will press the case for aid for the Borders in a meeting with Scottish Office Industry Minister Brian Wilson later in the week.
Grampian Brands, which sponsored Europe's winning Ryder Cup team and Scottish golf star Sam Torrance, also blamed the 120 job losses on the strong pound as well as changing tastes in fashion.
The company said it would shed 70 of the 220 jobs at the Mackinnon of Scotland factory and 50 from the workforce of 150 at the Glenmuir ''cresting'' business in Lanark. Knitwear production at Coatbridge is to be reduced and will end at Glenmuir. The Lanark site will continue to produce crests for golf clothing.
Mr Graham Hayward, managing director of the firm's knitwear division, said: ''The knitwear industry is going through some tough times, but I am confident
that the moves we have announced put us in the best possible position to maximise the long-term potential for business success and jobs at both Coatbridge and Lanark.''
The company announced 140 job losses, including the closure of a factory in Arbroath, six months ago.
Receiver Price Waterhouse said yesterday it was hopeful to find a buyer for the Sweater Shop retail outlets, but it would be more difficult to sell the manufacturing part of the business. The company has a string of High Street stores and employs 270 in its factory at Cumnock in Ayrshire.
The Sweater Shop tried to use lucrative sponsorship deals with snooker stars, such as Scotland's Stephen Hendry, to help boost its image.
Union leaders and politicians expressed concern at the latest developments.
The STUC deputy general secretary, Mr Bill Speirs, said: ''It is a very worrying situation and we are obviously concerned about the future of the industry.
''We will be having a meeting with the textile unions to come up with an assessment of where the industry stands at the moment.''
He said unions would be making representations to the Scottish Office, Scottish Enterprise and employers.
The Scottish National Party SNP Treasury spokesman, Mr John Swinney, said: ''These are extremely worrying developments in what is a fragile industry which is subject to fierce international competition.
''The textile industry's problems are compounded by the fact that the Government's policies have been working against them rather than for its interests.''
He said the Government's economic policy favoured the economy of the south of England.
Mr David McMorrine, chief executive of the Scottish Textile Association, said it was an ''unfortunate coincidence'' that the three announcements had been made at the same time, ''rather than a signal that it's the end of the industry''.
He said there was still hope for the future and added that the minimum wage would have a significant effect only on low-payers in London and the Midlands.
He said: ''I am not saying it won't be the straw that breaks the camel's back for some companies and it is terribly bad news that three companies had bad news on the same day, but I wouldn't say it's the beginning of the end.''
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