The Loomhouse was a factory on Peladon where Peladonians such as Gentry were forced to work and sleep. According to the Eighth Doctor, people rarely survived more than a year of working there.
The Doctor took Arla Decanto to see the Loomhouse, showing her the obscene working conditions and introducing her to the starving Gentry. She initially closed her eyes to the problem, saying that every society had its poor and its rich. The Loomhouse was later stormed by the guards, who rounded the workers up and killed Gentry when he showed some resistance. (AUDIO: The Truth of Peladon)