During World War II, Mill No. 7 became the site of a munitions factory. After the war, Pacific Mills bought both Mills No. 4 and 7 and operated them as Carrboro Woolen Mills. When Pacific Mills closed in the mid-1960s - the final activity at the mill was sorting and shipping BVD underwear - Carrboro was no longer able to depend upon the textile industry to sustain itself. The University of North Carolina and other businesses in the area were growing rapidly and provided work in a wide range of occupations and locations.