Finally finished this one...I did end up using the knitted piece as the closure. I blanket stitched round the handle...just looks better and feels more sturdy. Added some of my recycled jewels , even used a clip on earring as the closure clip...works well.
I like the combination of the felted bag and the unfelted section.
I really like the earring idea, I must have a look in the charity shops for jewellery I would never wear but that would look good on knitting.
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