The former Jaeger factory in Campbeltown, which ceased operations in 2001, is to be demolished during the week beginning 14th February 2005.

A replacement tenant or purchaser could not be found for the premises, leaving the current owner, Highlands and Islands Enterprise (HIE), with no option but to demolish the building.

The closure of the factory followed a long presence in the town by Jaeger and its parent company Coats plc going back to the late 1970s.

Coats plc leased the premises from the HIE network, and attempted to find a replacement tenant to take on the lease which was not due to expire until 2010, but was unable to secure any interest and surrendered the lease in May 2003. HIE continued to market the premises for sale or lease, also with no success.

Douglas Cowan, head of infrastructure and community development at Argyll and the Islands Enterprise (AIE), said: "Since the building reverted to HIE control, the Network has continued to incur significant cost in holding the property both in terms of repair, maintenance and insurance.

"This cost has recently increased following a risk appraisal carried out by the building insurers, which recommended that the property be inspected at least every 14 days. This has increased the costs of retaining the building, both in terms of finance and staff time.

"With no prospect of securing an occupier who could bring it back into economic use, it has become clear that there is no option but to demolish the property."

AIE did consider partial demolition and sub-division of the property into smaller units, however the only part of the building suitable for retention is nearly 20 years old and would require total refurbishment and would further reduce the already limited options for the rest of the site.

No long term use of the site has yet been identified, however, AIE is currently working in partnership with Argyll and Bute Council and Communities Scotland to devise an overall strategy and action plan for Campbeltown centre which may identify potential uses for the site and the draft local plan may also influence future use.