Abstract: A towel dispensing apparatus comprises an electrically-operated towel winding mechanism for winding-up the tail end of a used towel. The towel winding mechanism comprises a battery operated electric motor coupled to a towel winding roller. A limiting mechanism which limits the length of towel dispensed during use of the apparatus is disabled during tail end wind-up by a solenoid-operated disabling member. The motor and solenoid are energized when pressure switches detect passage out of the cabinet of the towel end. The disabling mechanism can operate only after withdrawal of the towel end from the cabinet.