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Last Updated: Friday, 30 June 2006, 16:33 GMT 17:33 UK
Shawbost tweed mill to shut down
Nike sports shoe which uses Harris Tweed
Nike used Harris Tweed in a ladies' basketball boot
A Harris Tweed production company which was involved in making material for a Nike trainer is closing one of its mills, it has announced.

Workers at the mill in Shawbost, Western Isles, were told of the decision on Thursday.

KM Group expect some of the 30 staff will be able to be employed at the company's other mill in Stornoway.

The firm helped meet American sportswear and fashion giant Nike's demand for tweed for a women's trainer.

Derick Murray, of KM Group, said he regretted the decision but that the mill in Shawbost had been losing money for some time.

Letters will be sent to staff explaining how the closure will affect their jobs.

The mill in Stornoway employs about 80 people.

Roddy Morrison, Western Isles councillor for South Shawbost, said it was "terrible" news and he will be seeking a meeting with the owners to see if there was some way of rescuing the situation.

In 2004, KM Group weavers helped Luskentyre Harris Tweed fulfil an order for the material for a Nike ladies' basketball boot.

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