PURPOSE: To have sure automated operations by equipping a towel folding device with a seam position matching mechanism, and by supplying two-folded towels to a towel takeup device from the side of the seam by the use of a flow attitude head changing device.

CONSTITUTION: Each towel spread T1 is transported by conveyor belts 12, 14 arranged on the left and right, and between them, a space 16 is provided to allow insertion of two-folded towels. The towel transported T1 is controlled by sensors 20a, 20b of the belts 12, 14 on the right and left in transport direc tion, which are driven individually, wherein the fold position is aligned, and folded in two into the space 16 by a guide member 26 of a two-folding device 22. Each two-folded towel T2 is transported with its fold situated ahead on an elevating/sinking conveyor 42, which then sinks, and further transported by another conveyor 50 with the side place ahead to the inlet to a takeup de vice. This ensures that towel is folded in two certainly, taken up in proper attitude, and that automation is facilitated.