Hawick Knitwear is set to close with the loss of around 180 jobs.
The Liddesdale Road factory will cease trading immediately and the majority of the workforce will finish today (Thursday).
The Hawick News understands that a small number of employees will remain at the factory to finish the order book.
Provost Stuart Marshall said the news was a terrible blow for the town and added: “This is the worst possible start that our town could have to the New Year.
“I’m absolutely shattered to hear that this company is to cease trading and I cant begin to imagine what the employees are feeling at this moment in time.
“It’s hard to believe that such a famous brand in knitwear will no longer be manufactured in the town. This really is terrible news.”
Full story in tomorrow’s Hawick News.