Abstract: An apparatus for cutting and positioning a chain of stitches for stitching onto material in a sewing machine having a needle and a throat plate, comprising, a cutting knife adapted to sever the chain of stitches after the chain has been sewn onto the material, a device adapted to move the severed chain to a position forwardly of the needle, and a gripping device adapted to be positioned at a level below the throat plate during sewing of the chain stitches onto the material, and to rise up and grip the thus positioned severed chain, and return to below the level of the throat plate to hold the chain, to effect incorporation of the chain during the initial stitches into the seam being formed.