Farfield Mill, which is near the popular town of Sedbergh, was host to a party to launch its conversion from a charity into a Community Benefit Society.
The four-storey Victorian mill is home to 20 designer-makers and artists, and is a retail outlet for more than 60 crafts people.
It includes a woollen heritage centre, has two working industrial looms and a room of hand-looms for visitors to try their hand.
But it is running at a loss and needs to raise £350,000 through a share offer to pay off the mortgage so that the mill belongs to the community. The money will also be used for desperately needed renovations and repairs and to market the mill properly so it generates income to make it viable.
If the campaign does not reach the minimum target then everyone gets their money back and the mill will close.
The share issue is being handled by Ethex, a financial services company which acts as a conduit for ethical investment.
