A Donegal company which makes carpets for the White House and Áras an Uachtaráin is calling for a helping hand from the State, writes Chris Ashmore.
A €500,000 cash injection into a Co Donegal firm whose handmade carpets grace Áras an Uachtaráin and the White House could not only prevent closure, but lead to its expansion, according to the company's managers.
Donegal Carpets in Killybegs faces an uncertain future. Only three people are working in the factory, completing an order from a Russian artist to make a carpet based on one of his works.
But manager Mr Michael McDaid, who was given notice that his employment would cease last Friday, is working on and is adamant that the firm still has a future.
He says the firm lacks capital and has drawn up plans for a management buy-out. "My plan to move forward is dependent on an investment of €500,000 raised by attracting 10 investors who would also be offered a rug to the value of half their investment."
The firm has been kept alive in recent years by orders from Áras an Uachtaráin worth €400,000. "We have also done work for private clients from the UK, US and Japan," he says, noting that "they found us, we did not find them".
And therein lies the vast untapped potential. "We have not had the resources for any marketing. We haven't even touched the US market and there is huge potential. We have a brand name and quality and there is a lot of goodwill towards the firm."
In the short-term while an investment package is being drawn up, he wants the State to effectively give the firm a six-month reprieve.
"If they purchase sufficient rugs off us to keep us going we can put things in place for a management buy-out."
The prospect of closure comes just months after the opening of a showroom in Moscow called Studio Donegal. It was set up after two Russians - on fishing-related business in Killybegs - were so impressed by the rugs that they ordered over €30,000 worth in stock and samples.
Aside from some of the "arts and crafts" rugs made by Donegal Carpets in the early part of last century, every piece is unique.
"We guarantee that the rugs made will never be repeated and this is also true of wall-hangings," he explains.
Recently they have had a number of orders from nightclubs, bars and hotels looking for contemporary, modern styles. "We can offer architects the facility to put a piece of art onto the floor."
Founded in 1898 by the Morton family from Scotland, Donegal Carpets built up a reputation for high-quality handmade rugs. Employment, including outsourcing, peaked at over 500.
Geared very much towards the top end of the market, its rugs adorned many famous landmarks, including Buckingham Palace and on board the Queen Mary. Rugs from the early part of the last century have become collectors' items, and fetch €40,000 to €50,000.
The McGrath family, whose interests also included Waterford Glass and the Irish Hospitals Sweepstakes, then took control in the 1950s and inroads were made into the US market.
Like many indigenous firms, Donegal Carpets experienced difficulties in the 1970s, and the recession, combined with the increasing popularity of fitted carpets, contributed to its closure in the 1980s.
However, the traditional hand-knotting practices were revived just over 10 years ago with FÁS backing, and a new company, formed by local businessmen, was set up in January 1999.
The quality and design of the carpets has attracted considerable praise, but unless new structures are put in place this traditional industry could fold again.