I have never done this myself, but I saw a very clever bag made from a "boiled" wool sweater. Take off the sleeves and sew up the sides, open the shoulder seams for the bag opening and close the bottom. The bag still had sweater buttons on it and the sleeves were used to make the handles. The whole thing was lined. I hope this made sense. If you are interested send me a PM and I will try to get more information.