ONE of the three remaining mills that produces Harris Tweed has been saved from closure after a being bought in a deal led by operations manager Annie Macdonald.
The sale of The Carloway Mill on the Isle of Lewis brings to an end more than a year of uncertainty since chief executive Derek Reid laid out plans to offload the beleaguered mill.
Mr Reid said he and his fellow directors and shareholders Alan Bain and Roddy MacAskill were “absolutely delighted” by the outcome.
He added: “We invested in Harris Tweed to save an industry which in 2003 was dying and to exit by way of a management buyout is the best and optimum solution for all concerned, including most importantly the staff in the company; the community of Carloway; the Harris Tweed industry which needs all the mills to grow and develop, and the Western Isles economy itself.”
In January last year, the mill almost fell into voluntary administration as a result of costs spiralling while prices dropped, but Mr Reid re-financed the business and subsequently put it up for sale.
Over the course of the year, it is believed a number of possible investors looked at the mill, before the deal was struck with Ms Macdonald and an outside investor, Anthony Loftus.
Ms Macdonald, a former councillor on Lewis, will look after the day-to-day running of the renamed Carloway Harris Tweed Mill. Mr Loftus works in the oil and gas industry and will play an active role in the business.
Mr Reid said the management buyout (MBO) was always his preferred option. “It is the community’s biggest employer and the MBO brings further security and stability,” he said.
The financial details of the deal have not been disclosed, but all 17 staff at the mill will be retained and recruitment is set to take place later in the year. After a period of skill shortage, there is now an adequacy of weavers on the island.
Ms Macdonald said a growth strategy was already being put into place and the company would continue to build momentum in its lightweight tweed blend, which was introduced last year to high levels of interest. This lighter and softer tweed is specifically targeted at markets with warmer climates and for summer garments.
She said Carloway would continue to develop new blends of tweeds for the export market and for fashion houses, for whom the mill undertakes bespoke orders.
Since the business was put up for sale, machinery, plant and buildings at Carloway have all been overhauled and upgraded.
“This is something I never envisaged happening in my life,” said Ms Macdonald. Harris Tweed is enjoying a resurgence on the back of growing popularity among fashion designers.
“The past 12 months have been a very difficult and demanding time for the staff at Carloway and has required great commitment from the directors, managers and all the staff.
“But winners make that type of commitment, losers simply make promises,” added Mr Reid.
Harris Tweed is protected by an Act of Parliament, ensuring it can only legally be made from virgin wool by islanders on Lewis, Harris, Uist and Barra.
The orb trademark has appeared on Harris Tweed garments since 1911 and last year became an official coat of arms.
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