Monday, October 5, 2009

Wool and Fiber News!

Deal knits together Scots and German fashion in '£100m' Borders boost

Published Date: 05 September 2009
By Robert Fairburn and ALASTAIR DALTON
A BORDERS knitwear firm has signed a multimillion-pound contract that could make it one of Europe's biggest brands.
Peter Scott & Co – famous for its stag logo – has joined forces with German company Peek & Cloppenburg, which has more than 140 fashion department stores across Europe. It has been described as a cross between John Lewis and Harrods.

Ken Pasternak , the Scottish
knitwear firm's managing director, said he hoped the deal would lead to an increase in its 200-strong workforce and new machinery for the 130-year-old company's mill in Hawick.

He said: "There hasn't been a bigger deal of more significance for this mill since we secured the contract to provide the British Army with underwear in 1914."

Peek & Cloppenburg has paid to have the Peter Scott name on its range of clothing, from underwear to shoes, ties and suits.

Knitwear is a key part of the deal, which will continue to be manufactured in Hawick. Other items will be manufactured elsewhere in the EU but will be co-designed by staff in Hawick and Germany.

Peter Scott will also be able to market and sell the clothing line to its own customers worldwide.

Mr Pasternak, who is also chairman of the Scottish Cashmere Club, said he hoped the Peter Scott brand would grow its turnover into £100 million within the next five to ten years.

He said: "I have no doubt that we will become the biggest knitwear brand in Scotland. We want to see our staffing numbers increase.

"This will not only swing Peter Scott around and create a brilliant future for us but it will also have a significant impact on the future of Hawick."

Peek & Cloppenburg was founded in Holland in 1863 and moved to Germany in 1900. It has more than 20,000 staff.

A spokeswoman for Scottish Enterprise said: "This is a fantastic development and will have a significant impact for both the company and the Borders economy.

"Peter Scott is a company which has a strong Scottish heritage but is not afraid to look at new opportunities overseas such as this one.

"This is the kind of attitude we want to instil in more Scottish companies to help them identify new opportunities, to help them through the recession.

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