A ready-to-assemble furniture manufacturer has announced plans to permanently close a production facility, resulting in the loss of around 200 jobs.
The company confirmed that operations at the 260,000 sq ft factory, located on a 20-acre industrial site, will be wound down with layoffs expected to take effect from 2 May.
© Khwaneigq | Dreamstime
The plant, Prepac, produced ready-to-assemble residential furniture sold through major retailers including Walmart, Amazon and Wayfair. The facility had been positioned as a key production hub serving customers along the US East Coast.
The closure comes roughly a year after the company centralised production at the site, a move originally intended to improve its competitive position and logistics efficiency.
In a statement, the manufacturer said the decision followed a review of its long-term business outlook, citing challenging economic conditions for North American furniture manufacturing. The company noted that the cost of domestic production had become less competitive globally, particularly amid continued competition from lower-cost imports from China.
The company said it would focus on managing the shutdown in an orderly manner while seeking to minimise the impact on employees, customers and suppliers.
The factory had previously been supported by state and local economic development incentives tied to job creation and investment commitments.
Source: www.bizjournals.com
