A Borders knitwear company has gone into administration with the loss of more than 120 jobs.
Hawick Knitwear has a manufacturing heritage dating back to 1874 and administrators say they hope a buyer can be found.
The company's finances have suffered from increasing production costs and reducing margins, while attempts to secure new investment have been unsuccessful.
Recent mild winters have also led to a reduced demand for heavier winter garments.
The firm employed 179 staff, of whom 123 have been made redundant.
Blair Nimmo, joint administrator and head of restructuring at KPMG in Scotland, said: "Unfortunately, extremely difficult market conditions have led to the current position.
"It is regrettable that a high level of redundancies has been necessary at this stage and we will be working with employees and the relevant government agencies to ensure that the full range of support is available to those who are affected."
Mr Nimmo added: "Hawick Knitwear has an excellent reputation in the industry.
"The company benefits from its heritage and established infrastructure together with a developing brand and a highly-skilled workforce, which we believe will be an asset to prospective purchasers.
"We would encourage any party who has an interest in the company's business and assets to contact us as soon as possible."
Hawick Knitwear designs and manufactures knitwear, including high quality cashmere garments, under its own name and the Clan Douglas brand.
Mr Nimmo said that despite its trading losses, the company has been building its own-brand sales, accounting for approximately £2.5 million of annual sales of £8.5 million.
Borders MP Calum Kerr described the news as "shattering" and said he had been in touch with Scottish Enterprise to see what help it could provide.
The member for Berwickshire, Roxburgh and Selkirk said: "Hawick Knitwear is a hugely respected operation with a top class reputation within the industry and a brilliant, dedicated workforce.
"I believe that real opportunities do exist for the business to succeed. This is always a challenging time of year in the knitwear sector, but the company has a strong history in high end products such as cashmere and this is very much where the market is heading.
"I am happy to play any role I can in securing the company's future. In the meantime, if any of the workforce feel I can be of help, then I would urge them to get in touch with me or my MSP colleague Paul Wheelhouse without delay."
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