A Canadian furniture manufacturer has decided to shutter operations in Delta and move production to the United States.
Prepac's roots in Greater Vancouver date back to its founding in 1979.
In a statement, CEO Nick Bozikis said the move came after "many months of consideration and analysis, and began long before any tariff risks to Prepac's business arose."
"The last several years have been challenging for North American furniture manufacturers, and the closure of our Delta, BC facility is a necessary step that reflects the realities of Prepac today and the prospects for the company going forward," he added. "We are proud of our heritage in Delta, however, our North Carolina facility is located much closer to our largest customer base."
Unifor, the union representing the more than 170 employees at the Delta facility, chalked the decision up to "pure greed," accusing Prepac executives and equity owners of "using the tariffs as an excuse."
"Our union has been warning about lost investment and production since Trump began his economic war on Canada and Canadian workers," Unifor President Lana Payne said. "It's a slap in the face to Canadian workers and Canadian consumers who have made this company a success since 1979."
Unifor Western Regional Director Gavin McGarrigle said the union would be "calling for a boycott of Prepac products nationwide," calling the move "another example of equity firms stripping companies for profit with no regard for jobs, community, or frankly, decency."
Prepac was founded in Vancouver 45 years ago and locally owned until 2019, when it was sold to private equity firm TorQuest. In 2020, the company acquired a fourth building in Delta to keep up with growth. The following year, the facility in North Carolina was opened.
The company has long succeeded in sending its products to markets outside Canada. In 2017, it won the BC Exporter of the Year award in the consumer products category.
The White House claimed Prepac's move was evidence of the "Trump effect."