A buyer has been found for parts of troubled textiles firm Hawick Knitwear, saving 32 jobs.

The company, which has a manufacturing heritage dating back to 1874, went into administration in January with the loss of more than 120 positions.

Finances had suffered from increasing production costs and reducing margins.

Blair Nimmo and Tony Friar of KPMG were appointed joint administrators in January and they have now confirmed the sale of the plant, machinery, the Hawick Knitwear brand and its intellectual property to Lyber 2016 Limited.

The administrators said a sale of the business as a going concern could not be achieved despite a number of parties expressing an interest.

Lyber 2016, formed by Hong Kong-based knitwear firm Artwell, became preferred bidder in February by paying a non-refundable deposit. The agreement is expected to secure 32 jobs.

Mr Nimmo said: "We would like to thank everyone involved for their patience and perseverance during what has been a challenging sales process.

"We are very pleased to have achieved a sale of certain Hawick Knitwear key assets. We wish the purchaser every success in its new venture."

Business minister Fergus Ewing said: "The sale is testament to the quality of the product and the demand for knitwear from this part of Scotland.

"While the number of staff is expected to be lower than previously employed at Hawick Knitwear, I am pleased that operations will continue."

An action plan setting out a regeneration strategy for the town is due to be published next week.

Paul Lewis, managing director of Scottish Development International, which helps to encourage inward investment to Scotland, described the news as "encouraging".

He added: "I know this investment by Lyber 2016 Ltd won’t immediately fill the gap left by Hawick Knitwear but it signals a significant investment in the area and will secure employment for 32 people."

Mr Lewis said his team would continue to work alongside Scottish Borders Council to encourage further investment in the textiles industry and the area.