One of Scotland's oldest textile mills, Caerlee Mills at Innerleithen, is facing closure with the potential loss of 36 jobs.
Caerlee Mills, which dates to 1788, has appointed KPMG provisional liquidators.
The site was saved from closure three years ago by a management takeover after JJ & HB Cashmere went into administration with the loss of 132 jobs.
The company is said to have been in a "difficult situation for a number of months" due to falling orders as a result of a decision by its main customer – Ballantyne of Italy - to significantly reduce the volume of manufacturing at Innerleithen.
Caerlee was established on the strength of this relationship with Ballantyne and although additional customers have come on board, this has not been sufficient to compensate for the reduction elsewhere.
Local MP David Mundell has now written to the Scottish Government to ensure they are up to date on development and seeking reassurances that they will provide support to the local community moving forward.
Commenting he said: “This news is very concerning, but in the first instance the administrators will be looking to find a buyer for the business, and I hope that will be possible. Everyone with an interest, including MPs, local councillors and the Scottish Government, must now work together to find a way forward. This means supporting a continuation of the existing business but also providing all the necessary support to workers and their families at what is a difficult and uncertain time.
He added: “People badly want to see the textile industry retained in Innerleithen but in the event that is not possible then a solution which puts the site to good use is vital given its significance to the local community. “
KPMG said it intended to continue to trade the business while looking for a buyer.
Their Head of Restructuring, Blair Nimmo said: "Caerlee Mills has a rich history dating back more than 200 years and remains an attractive acquisition for the right buyer.
"The company has been facing difficulties following trading losses and increasing cash flow pressures, mainly resulting from a reduction in orders.
"There remains an excellent opportunity to acquire a well known business which manufactures a top quality product and we are hopeful a buyer can be found."