A 109-year-old textile company is closing its Hillsville facility as energy costs rise

Historic factory shuts after more than a century amid rising energy costs

Parkdale Mills, a yarn manufacturer founded in 1916, filed notice that it planned to permanently close its Hillsville, Virginia, operation. Rising energy costs and economic pressures are behind the decision.

Locals are watching closely as this long-standing facility shuts down, and experts warn it could signal bigger shifts in the U.S. textile industry. Many are now wondering what the future holds for the town and its workforce.

Official reasons cited for the shutdown

In its formal WARN Act letter, Parkdale Mills attributed the Hillsville facility’s closure to a declining economic environment created by rapidly rising energy costs. The company identified energy cost pressures as a central factor in its decision.

The notice did not cite specific global competition as a reason for the shutdown. Local leaders confirmed that energy costs were included in the official documentation.

Workforce impacts at the Hillsville facility

The WARN log lists 68 affected employees with an impact date of October 24, 2025, and reports indicated that the facility was scheduled to stop operating earlier in October. These layoffs follow previous workforce reductions of 326 jobs at the same facility in 2023.

Both sets of layoffs were communicated through official state WARN Act filings. Displaced workers now face job searches or retraining opportunities in the region.

Parkdale Mills’ historical background

Parkdale Mills was chartered in 1916 in Gastonia, North Carolina, and began manufacturing yarn by 1918. Over more than a century, it expanded into one of the world’s largest spun yarn producers with multiple facilities in the U.S. and abroad.

The company markets a wide range of yarn products used in apparel, home textiles, and industrial applications. Parkdale also owns U.S. Cotton, broadening its textile‑related product offerings.

Textile industry pressures in the U.S.

U.S. textile manufacturing has declined over the decades due to competition from imports with lower production costs. Many mills have reduced domestic operations or shifted production overseas to remain cost‑competitive.

When global production is cheaper, older plants struggle to match lower prices without modernization investment. This broader industry trend helps contextualize the Hillsville closure within national patterns of textile contraction.

How energy costs affect operations

In Parkdale’s official notice, rising energy costs were cited as a major factor making the Hillsville facility unsustainable. Energy represents a significant portion of manufacturing expense for textile plants that run equipment continuously.

Manufacturers nationwide have cited fluctuating energy costs as a challenge for long‑term facility planning. Older facilities without modern energy infrastructure typically incur higher per-unit energy expenditures.

Hillsville’s role in Carroll County employment

Parkdale’s Hillsville facility provided consistent manufacturing jobs in Carroll County, employing dozens of local residents before the announced closure.

The Hillsville operation has been described in local reporting as one of Carroll County’s biggest manufacturing employers.

Employees often built skills specific to yarn manufacturing over years or decades of working at the facility. As a result, the closure’s job losses have personal and economic impacts on families in the community.

Earlier workforce changes in 2023

In 2023, Parkdale Mills reduced the Hillsville workforce by 326 positions as part of a partial downsizing of operations. That reduction reflected slowing production and restructuring before the final closure decision in 2025.

The 2023 layoffs were communicated via a WARN notice, similar to the one used for the 2025 closure announcement. They foreshadowed the facility’s gradual contraction over recent years.

Energy cost challenges explained

Parkdale’s filing and related reporting point to rising energy costs as a key pressure; the public summaries do not describe an ‘energy model,’ so avoid that phrasing unless you can source it directly.

Newer facilities may adopt energy-efficient systems, but older ones, like Hillsville, often require costly retrofits to reduce power demand. Those retrofits may not be financially feasible without strong economic incentives.

Local response and future site plans

Carroll County leaders are collaborating with the Virginia Economic Development Authority to attract new tenants for the Hillsville plant site, which has been vacated.

One potential replacement project under discussion could bring new employment opportunities.

Officials are also promoting workforce training resources to help displaced employees transition to new jobs. Community planners emphasize economic diversification to reduce dependence on a single large employer.

Broader U.S. textile contraction trends

Across the United States, textile mills have closed or downsized over the past several decades due to cost competition and efficiency challenges. Many domestic producers face imports from countries with lower labor and energy costs.

Textile industry analysts note that energy, labor, and materials costs combine to influence domestic competitiveness. Plants that cannot modernize face a higher risk of closure or relocation.

Parkdale’s remaining operations

Despite the Hillsville closure, Parkdale Mills continues to operate multiple manufacturing facilities in the U.S. and internationally. The company lists plants in states such as North Carolina, South Carolina, Georgia, and Alabama.

Parkdale also maintains international manufacturing in Mexico and South America to serve global customers. This broader operational footprint shows continued corporate activity beyond the Hillsville site.

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Economic impact on Carroll County

Parkdale’s closure will reduce business activity and payroll in Carroll County, which likely affects local consumer spending and economic metrics. Local officials have not published specific tax revenue figures tied directly to the plant’s contributions.

Loss of jobs and associated economic activity may influence local retail sales, housing markets, and service industries. The county is pursuing new investments to offset these effects and support economic stability.

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