A Canadian furniture supplier has shut down its manufacturing operations in Delta, British Columbia, moving all production to its North Carolina facility. The decision will result in over 170 job losses.
Photo: Prepac.
Unifor, the union representing Prepac's, the supplier in question, workers, attributed the closure to tariffs, with National President Lana Payne stating, 'Prepac and its equity owners are using the tariffs as an excuse to redirect all their production to the U.S. It's pure greed.' However, Prepac has not confirmed whether tariffs influenced its decision. CEO Nick Bozikis claimed the move was 'the product of many months of consideration and analysis,' citing industry challenges and proximity to key customers as factors.
Prepac, founded in Canada 45 years ago, was locally owned until its 2019 acquisition by private equity firm TorQuest. In 2021, the company invested $27 million in a 260,000-square-foot facility in Whitsett, North Carolina, creating 200 jobs.
Unifor has called for a boycott of Prepac products, with Western Regional Director Gavin McGarrigle describing the closure as 'a slap in the face to Canadian workers and consumers.' The move follows another job loss announcement in February, when South Shore, another Canadian furniture manufacturer, cited tariff threats as the reason for laying off 115 workers in Quebec.
Source: www.furnituretoday.com