A specialised Kelso engineering firm has folded with the expected loss of between 70 and 80 jobs.
Stunned workers were turned away when they arrived at the Pinnaclehill factory on Monday morning.
They were briefed on the situation later that day.
Local councillor Tom Weatherston has described the news as devastating.
There has been no statement yet from Border Precision but Councillor Weatherston said that, sadly, they had gone into receivership.
He said ; “This is devastating. Most of the workers live in Kelso although some travel into the town.
“I am sorry for the workers and their families and wish them all the best in finding work, while accepting that that will not be easy.
“Jobs are tight in Kelso at the moment.”
The company went into administration in January 2013 with the loss of 25 employees.
They continued to trade under the control of accountants Grant Thornton but more jobs were axed. In April of that year Borders-based business angels syndicate Tri Cap backed a management buy-out.
Over 20 Tri Cap members committed what they described as a “significant” six-figure sum and 80 jobs were saved.
Borders MSP John Lamont said: “I was pleased when Borders Precision was saved a couple of years ago, but sadly it seems that this buyout hasn’t protected jobs in the long term.
“This latest news is extremely disappointing, particularly as it will inevitably result in the loss of highly skilled jobs in Kelso. This is desperately sad news for the staff and their families, who face the prospect of losing their jobs so suddenly. It is now vital that the authorities will now do all they can to help workers through this difficult time.
“I’d urge any employees worried about their future to get in touch with myself or the Scottish Government’s Partnership Action for Continuing Employment (PACE).”
Border Precision was founded in 1976 with 12 workers in a 7,000 square foot factory, peaking at around 150 on a 60,000 square foot site,
The company’s products include medical instruments and supplies for the military.