A buyer is being hunted for the world's leading cashmere textile business after administrators stepped in to help salvage the debt-ridden Otley company.

Five of the ten members of staff have so far lost their jobs at suppliers Joseph Dawson after the company reportedly mounted up debts of £2 million.

The company provides, processes and supplies cashmere fibres for high fashion quality brands including Prada, Hermes, Gucci and Burberry, across the globe.

Hunter Kelly, one of the administrators at Ernst & Young LLP in Leeds, said: "The company has experienced cash-flow difficulties and we are marketing the business and assets of the company for sale as a going concern. We expect to receive interest from global buyers and are optimistic a sale can be achieved."

Otley ward councillor Colin Campbell said the company was the latest victim in the textile industry to suffer at the hands of the export trade.

He said: "It is very sad that these people have committed their lives and expertise and have lost their jobs. Over the last 20 to 30 years, textile jobs have been disappearing. In some ways it is more economic to buy quality items, they are more expensive but they are an investment."

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