Local MP David Mundell has expressed concern as liquidators announced they had been unable to find a buyer for Caerlee Mills.
One of Scotland's oldest textile mills, Caerlee Mills at Innerleithen, is closing with the loss of 36 jobs after liquidators KPMG failed to find a buyer.
Caerlee Mills, which dates to 1788, 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 to significantly reduce the volume of manufacturing at Innerleithen.
Caerlee was established on the strength of this relationship 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.
The Tweeddale MP commented: “I am deeply saddened and disappointed that the liquidators were unable to find a buyer that allowed for the continuation of business at this important and historic mill. The job losses come at a terrible cost to those affected and to the wider community. This is a severe blow to the textile industry but right now my thoughts are with all the families who face uncertainty and financial hardship following this closure. The number one priority has got to be getting those who have lost their jobs back into work and politicians at all levels must work together with the various agencies to make that happen as quickly as possible.”
Mr Mundell added: “The speed at which this situation has unravelled is unfortunate and I would have hoped the liquidators would have allowed more time for a buyer to emerge. This however has not happened and we must now focus on ensuring that the site, which is of great local significance, is put to good use and does not become derelict. I remain in contact with the liquidators and will continue to monitor events closely and lobby on behalf of the local community for the best possible outcome.”