Well, I think this is a great 'brandable' domain. Although its a generic word I would appraise it as a brandable domain, because of the low search numbers. It works well and is easy to remember.I think a towel retailer, towel manufacturer or perhaps paper towel suppler, would go for this domain.
The way I look at it, if you cant get Towels.com, or towels.co.uk what do you call your online towel store? Towel.co.uk is very brandable and taking the retail price of quality towels these days I'd appraise this domain at £2,000 - £4,000 to the right end user.