One of the only three Harris Tweed mills in the Outer Hebrides is in a last ditch bid to find a buyer to stop it going into voluntary administration next week.
The Carloway Mill on the west side of the Isle of Lewis employs 27 people and provides yarn to 30 weavers.
A Chinese textile company invested in the business in 2013 but hopes of expanding into the Chinese market have not been realised.
The mill’s owners said today that the cost of its raw material had increased by 35% and weavers’ wages had risen but the price of tweed had fallen by 10%.
They added that the business had a full order book but would seek voluntary administration to give the site and its jobs some protection, if a deal it is hoping to seal this weekend cannot be clinched.
Mill manager Kathy Macaskill said yesterday that staff had been kept fully up to date with the situation.
“We are in talks with a possible buyer – and have been for a little while – from outwith the islands,” she said.
“We are waiting over the weekend to see what the situation will be. We are hopeful, but well will have to wait and see what happens.”
If no deal is reached it is likely the company will seek voluntary administration on Monday.
The Carloway Mill reached an agreement in 2013 with the Shandong Ruyi Technological Group Ltd, whose HQ is in Jining in China.
Shandong Ruyi is one of the world’s largest textile companies and had a sales presence in more than 50 countries.
It was said at the time of the deal that their extensive knowledge of the textiles industry, together with their ambitions for Harris Tweed “make them a highly desirable partner.” But the hopes of a golden future failed to capitalise.
Ironically the plight of the Carloway mill comes at a time when the demand for Harris Tweed is booming.
The Clo Mhor – meaning ‘big cloth’ in Gaelic – has many famous followers including pop star Madonna, rapper Tinie Tempah, actress Gwyneth Paltrow and Dr Who Mark Smith.
Harris Tweed has been used to make handbags, hats, dog collars and even Nike trainers in recent years.
Growing global demand for Harris Tweed has sparked a near £2m expansion of the ancient cloth’s main manufacturer.