ACCOUNTANCY firm PwC has been tipped to be appointed as administrator at troubled Hawick-based cashmere maker Dawson International, which is struggling under its pensions burden.
The firm’s shares were suspended last week after it warned it could fall into the hands of administrators if it doesn’t find a way to handle its liabilities, putting the jobs of its 200 staff at risk.
Dawson said last week that its pension trustees had served it with a notice demanding an explanation as to how the company would meet its pension scheme deficit – which is thought to have hit £50 million – and pay the pensions of about 4,000 retired workers.
At the time, Dawson added: “There is no intention to appoint administrators for the US knitwear business, Dawson Forte, which is well-funded and continues to trade normally.”
Dawson’s pension woes have to come to a head after the Pension Protected Fund last month rejected a rescue deal. If the firm enters administration then the fund will take over it pension scheme, which could make the business easier to sell.
