A major Alabama manufacturer gave workers 60 days’ notice before shutting down operations after Christmas, marking the state’s largest plant closure of the 2024-2025 period.
On October 28, the company filed federal paperwork revealing that 455 employees will lose jobs by December 27—two days after the holiday.
This closure devastates a northeastern Alabama town of 14,877 residents, where manufacturing is a key driver of the economy. Families now face unemployment or relocation during the holidays.
Economic Earthquake
The layoffs affect 3.1 percent of Fort Payne’s population simultaneously—an economic shock rippling through schools, businesses, and households in DeKalb County.
Manufacturing represents 31.4 percent of regional employment, making the county vulnerable to industrial closures.
The plant will eliminate between $18 million and $27 million in annual payroll, while local tax revenues will drop $2 million to $4 million yearly, straining city services when workers need them most.
Sock Capital’s Decline
Fort Payne earned the “Sock Capital of the World” title in 1907 when Florence Knitting Company opened with 30 machines.
By the 1990s, 7,000 workers ran 125 mills, producing more than half of America’s socks and generating $150 million in annual payroll.
Then, the 2005 Central America Free Trade Agreement destroyed this. Cheap foreign labor arrived at U.S. ports within days, and mills shut down as manufacturers shipped machines overseas.
Trade Deals’ Toll
CAFTA eliminated tariffs with six Central American nations, making it cheaper to produce socks abroad and ship them to Charleston by Friday.
About 6,000 mill jobs disappeared—47 percent of Fort Payne’s 12,600 residents—and unemployment hit 16.9 percent.
Charles Cole, who led the Hosiery Association committee, said bluntly: “CAFTA pretty much took the sock industry out of the United States.” Today, only 17 mills remain in the county, down from 150 at peak.
Renfro Exits
Renfro Brands announced on October 28 that it will close its Fort Payne knitting and finishing plant on December 27, resulting in the elimination of 455 jobs and the relocation of domestic manufacturing to Cleveland, Tennessee.
The company filed the required federal notice, meeting 60-day layoff requirements. Renfro will create only 75 Tennessee positions, leaving 380 Fort Payne workers without replacement jobs.
Warehousing and distribution stay in Fort Payne, but manufacturing leaves the state.
Tennessee’s Gain
Cleveland, Tennessee, became Renfro’s consolidation target in 2013 when executives announced a $17.5 million facility renovation.
Tennessee Governor Bill Haslam praised the move, stating: “We placed a renewed focus on helping existing Tennessee businesses like Renfro expand.” The Cleveland/Bradley Chamber of Commerce noted Renfro employs 250 local residents.
Now, Cleveland will absorb Fort Payne’s production, gaining Tennessee’s business-friendly tax structure and AIDT workforce support.
Workers’ Dilemma
Fort Payne workers face brutal choices: relocate 90 miles to Cleveland for “priority consideration” at 75 jobs, or join the unemployment line.
Many workers come from families with generations of mill work. Rhonda Whitmire, a local sock maker, explained: “Those socks paid for food, education, and healthcare.”
She added, “It hits you in your gut even today. It changed our community’s atmosphere forever.”
Industry Comparison
Renfro’s closure ranks as Alabama’s largest plant shutdown in 2024-2025, surpassing Vanity Fair’s Monroeville facility (156 jobs in February) and Amcor’s Lanett plant (112 jobs in May).
However, Endo Pharmaceuticals’ 2017 Huntsville closure resulted in the loss of 875 jobs—nearly double the impact of Renfro’s.
Today, only 147 hosiery mills operate nationwide, a dramatic decrease from the thousands that once existed. Foreign competition controls the market: 97.2 percent of U.S. apparel imports come from overseas.
Domestic Manufacturing’s Collapse
American manufacturing lost nearly one-third of its jobs over the past two decades. Alabama shed 42,000 apparel jobs since NAFTA, with half of the blame attributed directly to the trade deal.
The 2008 financial crisis and 2010-2011 cotton price spike accelerated closures. Fort Payne’s sock industry dropped from 8,000 workers to under 1,000.
Renfro acknowledged that it makes only 30 percent of its products domestically; 70 percent come from offshore facilities.
Holiday Timing
Renfro chose December 27 to avoid Christmas severance payments while meeting 60-day notice requirements.
Workers spend holidays updating resumes and explaining to children why gifts won’t arrive. The timing triggered a WARN Act investigation by Strauss Borrelli PLLC, a class-action firm examining whether Renfro provided proper notice.
The firm stated that employers who violate WARN rules must pay back wages and benefits to affected employees.
Corporate Efficiency
Renfro justified the move by stating: “We constantly adjust our product mix and supply chain to serve consumers and retailers better.”
The company emphasized consolidation will “enhance efficiency and flexibility”—code for lower labor costs and faster logistics.
Renfro manufactures socks for Ralph Lauren, Polo, Dr. Scholl’s, Wolverine, and Carhartt, as well as the HotSox and K.Bell brands.
This diverse portfolio generates revenue supporting Tennessee expansion while abandoning Alabama.
Community Response
Fort Payne officials seek economic diversification after decades of decline in the sock industry.
In October 2025, when Renfro announced its closure, Fratco broke ground on a pipe manufacturing plant expected to create 50-60 jobs.
Mayor Brian Baine stated, “We’re proud to see this project support our industrial diversification.” However, 60 pipe jobs cannot replace 455 sock positions, resulting in a net loss of 395 regional jobs.
Remaining Mills
A few Fort Payne mills survive against tough odds, including Emi-G Knitting, founded in 1991 and run by second-generation owner Gina Locklear.
Locklear shifted to organic cotton and natural dyes, selling premium socks for $14-$ 18 per pair while competing against big-box retailers that sold bags for less.
CEO Yoel Fink states: “Creating high-paying jobs matters.” These holdouts employ roughly 1,000 workers, a fraction of Fort Payne’s former 7,000.
Uncertain Recovery
Economic developers highlight DeKalb County’s transportation advantages, including 42 miles of Interstate 59, six interchanges, Norfolk Southern rail, and proximity to auto manufacturers.
The median manufacturing wage reaches $50,753 per year—higher than in retail or hospitality. Yet attracting new industries requires years of site development and workforce retraining.
Brett Johnson, county economic director, noted, “These projects change families’ lives for generations,”—implying that recovery takes decades, not months.
American Manufacturing’s Future
Fort Payne’s story mirrors America’s story: manufacturing traditions gutted by trade deals, overseas competition, and corporate efficiency strategies, which often come at the expense of community stability.
As 455 Renfro workers count down to December 27, questions emerge: If the “Sock Capital” cannot sustain domestic production in an industry America once dominated, what manufacturing jobs survive?
The answer determines whether Fort Payne becomes a diversified economy or a cautionary tale of globalization.