Prepac will move its furniture-manufacturing operations in Delta, B.C.

The Delta facility is scheduled to close Friday and wind down by May. The ready-to-assemble furniture maker plans to shift the Delta operations to its North Carolina plant.

The move has drawn sharp criticism from Unifor, which represents the affected workers. Unifor said the Delta closure will eliminate more than 170 jobs.

In a news release, Unifor National President Lana Payne accused the company and its owners of using U.S. President Donald Trump’s tariffs on Canadian imports as an excuse to move production south.

Prepac, founded in Canada in 1979, was locally owned until its 2019 sale to Toronto-based TorQuest, a private-equity firm. The company expanded in Delta in 2020 but opened its North Carolina facility just a year later.

Prepac CEO Nick Bozikis told Business in Vancouver via email that the decision to relocate the Delta operations was based on months of analysis and was made before any tariff concerns emerged.

“The last few years have been challenging for furniture manufacturers in North America, and the closure of the Delta facility is a necessary step that reflects the realities of the company and its prospects in the future,” Bozikis told BIV.

With most of Prepac’s demand coming from the eastern U.S., its North Carolina plant is better positioned to serve customers, he added.

“We are committed to supporting a smooth transition for all impacted employees,” Bozikis told BIV. “This decision was in no way a reflection on the quality of our B.C. team.”

Photo: CNW Group/Unifor