Smiths of Peterhead textile firm in administration
A historic north east textile firm that supplies Gucci, Prada and Ralph Lauren has been placed in administration, putting 50 jobs at risk.
Smiths of Peterhead has been a family firm trading in woollens and knitwear for 193 years, and has bases in Mintlaw and Boddam.
It is failed to reach agreement with a creditor regarding a £120,000 debt.
Administrators at Begbies Traynor are now seeking a buyer, having made some redundancies.
Based at Kirkburn Mills since 1850, Smiths of Peterhead Ltd is one of the country's leading manufacturers of woollen fabrics and knitwear yarns.
The business has had a presence in Scotland since 1818 and traded as Thomas Smith & Co prior to 2005.
Administrator Paul Dounis said: "It would be very sad to see Scotland lose such a historic and prestigious firm as well as the loss of much-needed jobs in the area.
"We believe that Smiths can be a viable business but has suffered from fluctuations in demand for high quality woollen fabrics during the recession.
"It is unfortunate that the company has been unable to agree repayment terms with the creditors, however we are continuing to trade the business as we are hopeful that a purchaser will be found."