Carloway Mill

The financially trouble Carloway mill on Lewis has failed to receive a rescue package.

Company chairman Derek Reid said the Scottish Government and its development agency, Highlands and Islands Enterprise, turned down a plea for a bailout.

The business will now be marketed for sale for a “modest price” in a final attempt to save jobs.

Some 60 staff and self-employed home weavers are affected.

Mr Reid said: “We have been turned down by Highlands and Islands Enterprise and the Scottish Government.

“I am very, very disappointed and very upset.”

Mr Reid has taken a step back from calling in the administrators.

No rescue package for Carloway mill

18 January 2016

Instead, he will attempt to sell the loss-making mill as a going concern in an effort to save employment for the workforce.

Mr Reid said: “I am not going to put the business into administration. Instead I am putting it up for sale.

“I feel I have to do this to give the employees an opportunity for their jobs.”

“We have a full order book right up to the end April,” and additional wholesale customers are expected to keep the mill busy for the near future.”

He added: “If anyone is interested, please get in touch with me.”

A Scottish Government spokesman said it was “disappointed to learn of the difficulties” faced by the mill.

It said: “This will be an anxious time for employees and their families. Highlands and Islands Enterprise are in touch with the company to explore all possible options for support and to find a sustainable future for the business.

“The textiles sector in Scotland is wide and diverse, including a huge variety of different businesses, many of which are world leading.

"Some businesses are doing extremely well, but of course there are some facing challenges. The textiles industry has received a lot of support from the Scottish Government, including three summits led by the Deputy First Minister John Swinney.

"We work closely with the administrators in each case to assist any prospective purchaser of the business, and to ensure staff receive support from our initiative for responding to redundancy situations, Partnership Action for Continuing Employment (PACE).”