Pringle to have long, hard look at shedding Hawick jobs

Jul 1 2008 by Iain Laing, The Journal

LUXURY knitwear firm Pringle is considering shutting its manufacturing plant in the Scottish Borders with the loss of 80 jobs.

The firm has been reviewing the viability of the Hawick site and said it had to respond to a changing and competitive market and have informed workers and union representatives of the proposed redundancies.

Around 30 of the company’s 110 Scottish staff would remain at the Hawick site in finance and customer services.

Chief executive Douglas Fang said: “We have to consider ways to improve the performance of the business and closure of the manufacturing operation at the plant is, very regrettably, something we must consider.

“Any decision to close the operation is not one we would take lightly, but due to changing customer demands and the competitiveness of the industry, we have to consider this possibility.”

SC Fang & Sons took the company over in 2000. The family business is said to have invested up to £45m over eight years. Pringle is understood to have made losses of around £9m last year.

Bosses are looking to continue using some Scottish products but move the manufacturing elsewhere, possibly Italy, where costs are up to a third cheaper.

Mr Fang said: “Our business model and our brand have changed dramatically over the years. The growth that we have achieved in other parts of the business has come from a much more comprehensive, ready-to-wear apparel collection and we simply must respond to the changing nature of the market.

“We are operating in an extremely competitive global market. We are determined to restore Pringle to its rightful position as a truly worldwide luxury fashion brand, but there are some hard decisions which may have to be taken for the long term development of the brand.”

Founded in 1815 in the Scottish Borders, Pringle is one of Scotland’s best known brands. The company began producing hosiery and underwear before branching out to luxury knitwear.

The once strong and world famous Borders knitwear industry has suffered repeated cutbacks in the last decade due to foreign competition.

The company was once the biggest employer in Berwick until it shut its factory there in 1998.

The factory on the Tweedside industrial estate was later redeveloped as the home for a number of other companies.

Another well known knitwear company Lyle & Scott had cut its 300-strong workforce in Hawick before later merging with rival cashmere producer Clan Douglas and investing in its plant in the town.

The merger created a new company, Hawick Knitwear Ltd, which absorbed both Clan Douglas and Lyle & Scott’s manufacturing subsidiary Eleness.