Established in 1979, Studio Donegal began as an idealistic project to preserve the traditional craft of hand weaving, which had declined rapidly since the advent of machine weaving. The company suffered with the collapse of the dollar in the 1980s, and manager Kevin Donaghy was offered redundancy, instead he and his wife inquired about buying the business. They bought out the looms, and rented the space. Optimism and hard work saw them through the lean years, and towards success.

Keeping the tradition alive meant training new weavers, which continues today. Designs became more creative, colourful and modern. A sewing room developed, to turn the hand woven cloth into garments, cushions and throws. A carding and spinning operation enabled production of specialised range of yarn for weaving. Fast forward to 2022, Kevin and Wendy have retired, but the Studio remains a Donaghy family enterprise. Their son Tristan and his wife Anne now run the business with the same passion, keeping the traditional craft alive.