The new owner of the main Harris Tweed mill has refused a large order for the cloth from Germany.
Outfits made from the tweed have been showcased at Cannes
Weavers and mill workers on the Western Isles had been delighted to learn of the order - considered to be one of the biggest in almost 20 years.
Yorkshire businessman Brian Haggas, who controls the bulk of the industry, has refused to comment on the decision, saying it was an internal matter.
However, the move has led to increased fears about the future of the industry.
Mr Haggas plans to use production almost exclusively to make upmarket men's jackets and cut the number of tweed patterns to only five.
Islanders have welcomed his investment but they are concerned about a scheme to restrict sales and patterns.
Previously the cloth has been used for a ladies' trainer and in a designer bikini that was modelled at Cannes in France.