Representatives of Langholm Dyeing Company, which fell into administration last week, have entered into emergency talks with members of local council and government and Scottish Enterprise in attempt to save the firm.
Fifty-two workers are set to lose their jobs as a result of the closure, though it is hoped a buyer can be found to resurrect the business.
“The devastation for Langholm in this is really quite severe so we have got to try to mitigate that in any way possible,” said Langholm councillor Dennis Male.