BELMONT, N.C. -- R.L. Stowe Mills in Belmont is closing and more than 500 employees in two states could lose their jobs.

R.L. Stowe Mills has produced yarn for 108 years. At its peak, mill historian Jack Page says the mill ran 24 hours a day, seven days a week.

"It was a leader, a leader in its industry," he said.

The town of Belmont grew up around the mill.

But all the history and all the work came crashing down in a statement released this week, in which the mill cites a sudden and dramatic drop in sales and no expectation of it bouncing back.

"Sad to see Stowe Mills has come to this particular pass but I can understand how it is," Page said. "You just can't compete with overseas machinery and low wages."

Page and nearby business owners say they don't think it will have a huge impact on the town's economy. They say one reason is because they haven't had much business from mill employees for a while. Secondly, the industry has been dying a slow death for years.

The mill employs 550 people at four plants -- two in Belmont, two in Tennessee.

Stowe Mills says it's winding down operations, but isn't saying how many employees the closing affects here or if they'll receive severance.