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Last Updated: Wednesday, 22 November 2006, 13:28 GMT
Talks on Harris Tweed businesses
Harris Tweed loom
KM Group produces 95% of Harris Tweed
The majority of the Harris Tweed industry could be under the control of a Yorkshire company within months, BBC Scotland has learned.

Clothing manufacturer Haggas is in talks with the KM Group and a smaller tweed firm in the Western Isles.

The KM Group produces 95% of Harris Tweed and has been on the market for four years.

It recently shut one of its two mills with all of the work being transferred to Stornoway on Lewis.

The move was seen by observers as one which would make the company more attractive to potential investors.

There has been interest in the KM Group since 2002, when owner Derek Murray said he was open to offers.

The three parties involved in negotiations have not been willing to comment.

However, it is understood that talks are at an advanced stage and a deal could be concluded by the end of year.


SEE ALSO
Workers to take mill to tribunal
19 Oct 06 |  Highlands and Islands
Shawbost tweed mill to shut down
30 Jun 06 |  Highlands and Islands
Tweed running mate 'suits Nike'
21 Jun 05 |  Scotland
Nike forge unlikely tweed link
22 Jun 04 |  Scotland
Tweed sale moves closer
29 Nov 02 |  Scotland

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