WHITSETT, N.C. — Prepac, the Canadian company that in 2025 moved production out of Canada and consolidated operations in the U.S., is preparing to wind down operations and lay off 200 workers as of May 2, 2026.

In a March 3 WARN notice with the state of North Carolina, the  ready-to-assemble (RTA) furniture manufacturer said that it plans to permanently layoff the workers from its one primary U.S. factory, located in Whitsett, North Carolina. The 260,000-square-foot facility opened in 2021 to serve as the company's main hub for manufacturing, warehousing, and distribution. 

Prepac was founded in Canada in 1979 and in 2025 announced that it was moving all of its production out of Canada in order to "better serve its eastern U.S. customers." The move cost the jobs of 170 Canadian workers. 

In announcing the closure, the company cited unsustainable economic conditions, high costs of domestic production, and intense competition from low-cost imports, despite recent efforts to centralize operations in the U.S. 

In a statement, the company said, “After careful consideration and efforts to find a sustainable path forward for the business and prospects of Prepac Manufacturing, it has made the difficult decision to begin an orderly wind-down of all operations.

“Last year, we took the significant step of centralizing our production in North Carolina to better serve our customers and improve our competitive position. However, the broader economic conditions facing North American furniture manufacturing presented substantial challenges for our business. Despite our investments in modernization and the incredible dedication of our team, the cost of domestic production is no longer competitive against the global landscape, including the continued influx of low-cost Chinese imports.”