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.
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