A cash injection of £200,000 to £250,000 could help save a Harris Tweed mill under threat of going into administration.
Carloway Mill on Lewis -
Unless a last minute rescue deal is arranged over the weekend, the company is likely to file for voluntary administration.
Some 27 people are presently employed at the mill plus a further 30 or so home weavers could be affected.
Company chairman Derek Reid said the mill just needed £200,000 to £250,000 to keep afloat.
This would “allow time to address the issues to get long term investment in the mill.”
Attempts to find a white knight investor or a buyer for the Carloway business have been unsuccessful in recent months.
£200,000 bailout could save troubled Harris Tweed mill
15 January 2016
The mill is severely hit by a 10% drop in the price for the sale of tweed while the cost of key components in manufacturing has increased by around 35% in the past two years, said Mr Reid.
This includes the cost of weaving and the special orb stamping which certifies the authenticity of the textile.
Mr Reid queried why the price of tweed was falling when demand for the heritage cloth outstrips supply.
Without urgent, fresh investment at Carloway, the administrators would be called in, losing jobs.
Mr Reid stated: “I have no choice. It would be irresponsible of me to continue to run the mill and end up in receivership.”