WHEN the owner of a successful wool and knitwear business decided to retire, one of her longest serving members of staff took over.

Now, thanks to European funding, Mrs Ann Bolam has re-opened the Wensleydale Longwool Sheepshop on her husband's farm at Garriston, near Leyburn.

She had worked for Mrs Ann Hodgson, the previous owner, at nearby Spennithorne for ten years and had designed several of the company's own patterns.

When Mrs Hodgson announced her decision to retire, Mrs Bolam and her husband, David, decided to take the company on, partly as an extra source of income for their traditional mixed farm.

"We have beef, sheep and corn so we have felt the effects of the drop in prices like everybody else," said Mr Bolam, who has been at Cross Lanes Farm for 33 years.

The couple went to North Yorkshire County Council's economic development unit in Northallerton, which helped secure a farm diversification grant part-funded by MAFF, with the rest from the EU's objective 5b scheme.

They were awarded almost £22,000 to convert an old building, formerly used as a garage and wood store, into a shop and office for their wool and knitwear products.

Mrs Bolam has been joined in the venture by another former colleague, Mrs Ruth Tombleson.

The original shop in Mrs Hodgson's house at Spennithorne used to close for the winter, so the Bolams managed to carry out the conversion work between January and April.

And, through their long association with the company and the loyal 35-strong band of knitters, they were able to maintain old customers and contacts while still looking for fresh business.

The fleece of the Wensleydale sheep is recognised as the finest lustre longwool in the world. Soft and silky, with a natural sheen, the spun wool produces garments which have proved popular far and wide, with America and Australia proving to be particularly good markets.

The European trade has recently been affected a little by the strong pound.

Altogether the shop uses about three tonnes of Wensleydale wool a year, all obtained through the British Wool Board.

"I don't know how many sheep that involves, but it is an awful lot," said Mr Bolam.

The business does not have its own web site, although it can be found on various others including the Yorkshire net and Yorkshire Tourist net.

Many caller have also been attracted to the shop through leaflets in bed and breakfast establishments, tourist information centres, pubs and hotels.

The shop sells knitted garments and it, and the mail order service, also offer 2-ply, 4-ply double knit and Aran weights in a variety of shades as well as fleeces and tops for spinners.

The Bolams were at last week's Masham sheep show and also attend three other four-day events in London, Harrogate and Newcastle as well as advertising in specialist magazines.

Mr Bolam acknowledged the significance of the grant aid. "Without the grant we would never have gone ahead with the conversion," he said. "Raising the capital would have been too much of a risk, especially when the agricultural business is in such decline."

The shop is now open from April 1 to October 31, Tuesday to Saturday 10am-5pm, and on bank holiday Mondays. From November 1 it is open on Tuesdays only, although appointments can be made on 01969 623840. The e-mail address is sheepsho