I had suelyn7 in mind when I made this ITH purse. It has a zip in the top (not quite as successful in this lined version as it was in the dog.) I made it to fit my 20cm square hoop and trapped shoe lace halves in the corners and a few cm up the sides. When turned out and pressed, I tied these together to create a flat bottom. I thought it would be more useful like this. I could have stitched acrss the corners on the inside with my sewing machine to get the same effect.
I also added pockets although I'm nor sure how useful they will be!
The picture shows both sides.