What’s happening at New Lanark mill and what could be next?

New Lanark’s cotton mill and village is now part of a UNESCO World Heritage Site

As well as producing its own New Lanark yarn, for years the spinning mill’s  19th century machinery salvaged from a redundant Selkirk mill, has served dozens of small yarn specialists across the country.

Consumer demand for textiles soaked in heritage, are more sustainable and are rooted in traditional production skills has seen their numbers increase. Many rear rare and heritage breeds, collect fleece from their local farms – often paying above market rates for it – and rely on New Lanark to produce their yarn.

Others have built knitwear businesses around it, selling garments to national and international customers who crave New Lanark kudos, or stock it as a key product in their yarn shops.

However, New Lanark Trust, the charity responsible for managing the UNESCO World Heritage Site at New Lanark, recently confirmed the wool production business is to close.

That has left small yarn producers trying to find new spinning mills, with knock on impacts for knitwear producers and farmers who supply fleece.

Why is it closing?

The trustees and New Lanark’s senior managers say the mill has made £100,000 of losses over a five-year period making it financially unviable.

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It says: “New Lanark is doing well as an attraction, but responsible management is vital to ensure all areas of the business can operate viably.

“Consistently, over each of last five years, the woollen mill incurred significant financial losses, totalling almost £100,000.

“Having failed to make a profit for a long period, in 2023-2024 the woollen mill losses exceeded £50,000, which is clearly unsustainable for a small charity to continue to subsidise.

“This was not a decision we took lightly, and despite taking all necessary steps and giving the woollen mill several years grace to turn things around, we have a clear responsibility to the wider Heritage Site to run it in a sustainable way.”

However, the move raised questions over why the once thriving and profitable business which produced yarn for Chanel and was used to make countless souvenir Harry Potter sweaters destined to be sold around the globe, sustained such dramatic losses. 

Some pointed to a decision to move its carding machine to a basement to created an exhibition space which lost months of production.

Uradale Yarns in Shetland has fleece from its native Shetland sheep spun at New Lanark (Image: Uradale Yarns)

Once back in operation, a price hike led to some customers moving their business to other mills.

Critics of the move to end wool production say it comes just as Scotland’s small but enthusiastic wool sector is striving to capitalise on consumers’ demands for yarn and textiles that are traceable and sustainable.

The machines require specialist knowledge to operate, raising questions that should they fall silent, they will be difficult to start up again. 

The roof garden area at New Lanark is often closed for weddings (Image: Contributed)

There are calls for more clarity from New Lanark’s trustees (Image: Contributed)

What might happen next? 

A group of concerned textiles and heritage enthusiasts have formed a steering group to look into a suggestion that the spinning mill could be restarted as a form of co-operative. 

Such a move would echo Robert Owen’s socialist legacy, with potential to attract investors from around the world who recognise New Lanark’s role in social reform.

If run as a community benefit society, investors would be invited to buy shares in return for a single vote while a link could be retained with New Lanark Trust.

New Lanark Trust say they “remain open-minded about restarting the wool operation at some stage in the future”.

It adds: Any such proposals will, of course, require to be supported with a detailed and costed business plan, fully underpinned with adequate funding from the venture’s shareholders, before any decision to restart production can be taken.”