Prepac Closes NC Factory, Lays Off 200 Workers

0:00In Durham, it's March 6, and here's what is going on. Pre-PAC manufacturing, already to assemble furniture maker, is closing its North Carolina factory and laying off 200 workers in Whitsett, Guilford County. The company notified state officials this week and plans an orderly shutdown of all operations. Earlier this decade, North Carolina offered Pre-PAC around $300,000 in tax breaks to build the plant, creating 100, 31 jobs. Last year, the firm shifted all production there from Canada, drawing praise as an economic win. Republican leaders hailed the move as proof of strong trade policies and the White House spotlighted it too. But Pre-PAC said the decision came from long-term planning, not tariffs, amidst shifting East Coast demand. Now facing lower sales and a flood of cheap Chinese imports, the company sees no path forward. North Carolina's furniture sector has shrunk by 60% since 1993 due to Asian competition. High end custom furniture still drives locally, but mass market imports dominate.

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