The Beach Street Knitting Society and Yarn Club by Gil McNeil.
Jo McKenzie's husband is killed in a car crash, but she's not sure whether or not she should grieve, as he had told her he was leaving her just before he drove away. Meanwhile, she has two young sons to raise, and no real source of income.
Then her grandmother decides to retire, and asks Jo to take over her yarn shop, in the seaside town where Jo grew up. Eager to make a new start, Jo and the boys relocate to Broadgate Bay, where Jo sets about modernizing her granmother's musty yarn shop.
While she is updating displays, upgrading stock, and starting a Stitch'n'Bitch group, Jo makes friends with her new neighbors and reconnects with people from her childhood. Unintentionally, she also makes herself much stronger and more independent, which has a trickle-down effect on her sons.
This is British chick-lit at it's finest. I began to talk with a posh accent and each chocolate digestives with my tea. I thought the ending required a bit more closure though, but I see that this book was published in the UK in 2007 under the title Divas Don't Knit, and that a sequel entitled Needles and Pearls has been published there. I hope it makes its way across the Atlantic soon!