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Textile company in deal to safeguard jobs

Category: Scotland Business News — Mark on July 12, 2012

A Borders-based textile firm has agreed to sell half of its business in a move which it says will help secure about 200 jobs at its headquarters.

Hawick Knitwear has sold the 50 per cent stake to Ruia Group, an existing client of the textile company.

The managing director of Hawick, Benny Hartop, said that the deal would see not produce significant changes right away. For example, the existing managerial set up will be retained, while Hartop went on to say things were essentially running as usual.

Following the deal, Mr Hartop said he believes it will be positive to have: “an important customer on board”.

Ruia Group also owns the globally recognisable major golf brand Glenmuir. A tie up, it is believed, should help boost order levels at Hawick.

It is in taking advantage of opportunities for growth that many companies in Scotland are looking at invoice discounting and invoice factoring as viable ways of increasing working capital.

With invoice payments slowing through the downturn too, Scottish firms in a host of sectors are likewise looking at factoring and discounting to help secure positions for their staff.

While the potential with Glenmuir is the most obvious opportunity, the deal with Ruia Group should also promote growth in other areas.

It will help to focus direction into what customers demand today while also providing a number of useful connections in the industry network.

With the importance of UK manufacturing starting to be recognised more and more, this will certainly be the hope.

'Disclaimer: The information contained in these articles is of a general nature and no assurance of accuracy can be given. It is not a substitute for specific professional advice in your own circumstances. No action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a consequence of the material can be accepted by the authors or the firm.

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