Prepac Manufacturing is pulling out of Whitsett, and about 200 workers are set to pay the price. In a WARN notice filed Tuesday, the furniture maker told state officials it will wind down operations at its Whitsett factory and eliminate roughly 200 jobs. Permanent layoffs are slated to begin May 2 at the 260,000‑square‑foot facility just south of Greensboro, less than a year after the company consolidated its U.S. production there, leaving employees and local suppliers scrambling for answers.
According to the News & Observer, Prepac submitted the WARN notice to the N.C. Department of Commerce on March 3 and said the Whitsett campus will be closed. State records reviewed by the paper show the company received nearly $300,000 in state tax breaks tied to the project and created about 131 jobs under incentive agreements. Local officials did not immediately weigh in on the shutdown.
Company blames costs and low‑cost imports
In a statement describing the move as an “orderly wind‑down,” Prepac pointed the finger at high domestic production costs and sagging demand across North America. “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,” the company said, as reported by Woodworking Network. The company added that it plans to manage the shutdown in a way it says is meant to soften the blow for employees, customers and suppliers.
State incentives and the original pitch
The Whitsett plant grew out of a 2020 pledge of a $27.1 million investment and a Job Development Investment Grant that authorized up to $2,106,000 in performance‑based payments, according to the N.C. Department of Commerce. At the time, state and local leaders touted the deal as a big economic win for Guilford County, promising about 201 new jobs. With a full shutdown now on the table, officials may end up revisiting whether Prepac ultimately met the job and investment benchmarks that were part of that pitch.
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