Neighborhood revival

>>> back now with a neighborhood revival at an american factory that not so long ago appeared headed for the history books, like so many others. closing up shop after more than 150 years. we get our report tonight from cnbc's brian shactman in minnesota.

>> reporter: with 80-year-old machines and one 76-year-old expert on site -- i like

>> i like to see the place go again.

>> reporter: the fairbauld mills when opened in 1965 is literally weaving its way back from oblivion.

>> when they shut the doors here, i was devastated. to drive by here every day and see this beautiful place closed, it was so hard for me.

>> reporter: jenny jones and 100 others lost their jobs when the company closed in 2009 , a victim of poor management and a weak economy.

>> it was hard here before. we gave everything we had to this company and there were weeks without pay and we still came in every day.

>> reporter: untouched for two years, a liquidator was about to ship the equipment to a company in pakistan. then with just three weeks to go, local residents and cousins chuck and paul moody bought the mill.

>> people are tired of hearing we can't do it. it is going overseas. we can do it.

>> right now they have 35 workers. the goal is to raise that to 50 by year's end and to double that number in 2012 . why would the moodys, who know nothing about the business, with family money on an abandoned blanket factory.

>> probably stupidity more than anything.

>> reporter: but they're not quite the novices they claim to be. chuck is a retired dairy queen executive.

>> want it looped over.

>> reporter: paul, a lawyer and former business owner .

>> are we doing okay?

>> reporter: they didn't know how to make blankets, but they knew who did and most of their first hires were former workers like jenny jones and mary boudreaux.

>> we need their expertise and their guidance and stewardship. and they needed somebody to step up and say, you know what, this thing is worthy of saving and bringing back to life.

>> it is great having a job again.

>> is that emotion or are you trying to pick your words carefully? i can't tell?

>> it is emotion. i love having this job. i love being here.

>> reporter: in a still struggling economy, once old american company coming back and putting people back to work. brian shactman , cnbc, fairbault, minnesota.