2) The towel was folded into thirds and the grommet was punched through the top, holding all three layers together. Not very practical.
I discovered that the binding could be removed, so I decided to do a little surgery. I pulled out the grommet and opened up the towel, then cut the binding off both ends. After that, I trimmed off the top with the grommet holes, and trimmed off the bottom part with the logo. (see bottom photo).
After that it was pretty simple to sew the binding back on both ends. Poof! One finished towel. (top photo) I also got a small washcloth size rag out of the cut pieces, which I'll use in the kitchen.