Dawson International, the Kinross-based textile firm, has announced pre-tax losses of £3.2m for the first six months of this year.
The company said economic conditions in the first half of the year were the worst experienced for a very long time.
Dawson, which produces cashmere jerseys and owns the Barrie brand, also supplies bed linen.
Earlier this year, the company sold its Todd and Duncan cashmere yarn business to a Chinese firm for £6.1m.
Todd and Duncan is now part of the company's discontinued operations but continued to make losses in the first half of this year.
Taking into account the discontinued operations, Dawson's total losses were over £9m after tax and exceptional costs.
The company chairman, David Bolton, said the outlook for the full year remained "challenging" .
He said: "Every effort is being made to remain close to customers to find ways to adapt product and price point and respond to changing market demands dictated by the global recession."
