The Donegal company was founded in 1898 by Scottish textile manufacturer Alexander Morton. The Arts & Crafts Movement advocated the use of vernacular traditions and local materials and before establishing Donegal Carpets, Morton had first established a carpet crafting house on the west coast of Ireland and put to practice the techniques of the Donegal people who had been working with wool for generations. The company had a wide and important clientele for whom they wove private commissions, of which many remain in Britain's grandest houses including, Dublin Castle, the Royal Pavilion of Brighton and Eltham Palace.