Latest Charlotte region textile mill closure will result in 170 jobs lost
A long-time Charlotte-area textile mill is closing by the end of the year, putting 173 people out of work, according to an N.C. Worker Adjustment and Retraining Notification Act report.
Patrick Yarn Mill Inc. at 501 York Road in Kings Mountain will close Dec. 31, the WARN report filed Monday with the North Carolina Department of Commerce said. The mill, which specializes in cut-resistant and flame retardant yarns, is about 35 miles west of Charlotte. It had been operating for 62 years, and were previously part of the Pharr textile company.
The Gaston County mill produces yarns from recycled fibers marketed under its Earthspun trademarks and with its large solar installation promoting earth-friendly yarns as “Spun by the Sun,” according to Coats.
The layoffs will occur in four phases starting May 31 and ending Dec. 31 for roles from operators like spinning and twisting to manufacturing managers to warehouse workers and analysts, according to the WARN notice.
In 2017, London-based thread manufacturer Coats Group acquired the North Carolina mill for $21 million, industry publication Fashion Network reported at the time. The deal also included up to $4 million if Patrick Yarn Mill met performance targets by 2020.
“Coats’ decision to exit its North American yarns business and close its Kings Mountain site comes after a strategic review of the business and in response to structural market changes,” the company said Tuesday in a statement to The Charlotte Observer. All other Coats sites, including its manufacturing facility in Marion, are not impacted by the decision.
In December, Coats closed its Toluca, Mexico, facility. Coats, in its full-year 2024 results last month, reported softness in North American yarns with “no expected recovery” in the Americas’ yarns business.
Still, Coats said Tuesday that the company remains committed to its Performance Materials business.
Other Coats layoffs
Founded in 1963, Patrick Yarn Mill had 150 employees at the time of its sale. In 2016, the Cleveland County mill’s annual sales were $36.5 million, Coats said at the time of the sale.
In 2023, Coats laid off 41 workers at its McAdenville facility. The Gaston County plant makes industrial-grade yarns used in protective apparel for firefighters and military personnel.
The layoff followed just five months after Coats closed its Hendersonville plant, resulting in 51 layoffs.
Coats has more than 16,000 employees in over 50 countries, according to the company’s 2024 annual report. The publicly-traded company’s revenue was $1.5 billion, up 8% to the prior year.
Patrick Yarn Mill in Pharr sale
The mills were part of Coats’ purchase of Pharr High Performance as the Gaston County company exited the yarn business after over 80 years in textiles.
The sale, which was completed in 2020, included six North Carolina manufacturing sites in McAdenville, Kings Mountain, Marion and Hendersonville, as well as its corporate office in Charlotte. At that time, Pharr HP had about 350 employees.
Founded in 1939, Pharr still operates its real estate and hospitality businesses. Last fall, it expanded into investments with Greenleaves Capital, according to the company’s website.
The company is known for orchestrating Christmas Town USA, which draws hundreds of thousands of visitors annually to see the holiday lights display.
This story was originally published April 15, 2025 at 9:02 AM.