Meet&Co
DELTA, British Columbia — Prepac, a Canadian manufacturer of ready-to-assemble furniture, has ceased production at its facility in Delta, British Columbia, and will consolidate manufacturing at its existing plant in North Carolina.
Unifor, the labor union representing Prepac’s workforce, attributes the closure to ongoing trade tariffs, resulting in the layoffs of over 170 employees.
Lana Payne, Unifor’s National President, criticized the decision, stating, “For years, our union has cautioned against the repercussions of trade disputes on Canadian industries. Prepac and its investors are exploiting tariff tensions to justify relocating production to the U.S., prioritizing profit over workers.”
Prepac has not explicitly linked the shutdown to tariffs or trade conflicts. In response to inquiries, CEO Nick Bozikis emphasized the move followed extensive analysis, noting the decision “predates recent tariff-related uncertainties.” He cited prolonged challenges in the North American furniture sector and the strategic advantage of operating closer to key U.S. markets as primary factors.
Established in Canada in 1979, Prepac remained under domestic ownership until its acquisition by private equity firm TorQuest in 2019. The company expanded its U.S. presence in 2021 with a $27 million, 260,000-square-foot facility in Whitsett, North Carolina, generating approximately 200 jobs.
Unifor has urged consumers to boycott Prepac products, condemning the relocation as a disregard for Canadian workers and communities. Gavin McGarrigle, Unifor’s Western Regional Director, described the move as “a betrayal of the employees and consumers who sustained the company’s success for decades, reflecting private equity’s focus on profit at the expense of ethical responsibility.”
Prepac is the second major furniture producer to reduce Canadian operations amid trade tensions. In early February, South Shore announced plans to lay off 115 employees in Quebec, citing adverse impacts from tariff threats on its business viability.
