Abstract: Dispensing towels includes: the step of extending the toweling exterior of the housing for grasping by a user; and subsequent thereto, the step of retracting the toweling into the housing. The housing includes a main body, and a loading door that is configured to rotate relative to the main body between a closed position, in which the housing is configured to extend toweling there from, and an open position, in which the housing is configured to receive toweling therein. The loading door serves as a towel carrier and has a curved surface defining a cavity within which a roll of paper towels is received and retained in floating engagement therewith. The roll of paper towels rolls and slides on the curved surface when unwinding during said step of extending the toweling exterior of the housing for grasping by a user.