One winter in the early 1920s, a member of the Kluge family from New Jersey came to Chatham County and Pittsboro to escape the bitter cold of the winter and do a little hunting. The trip was a success and Mr. Kluge returned again and again to hunt, but of more importance to the economy and citizens of Pittsboro and Chatham County, he decided to establish a business operation here. Chatham Mills was born and for the next 70 years it was an important part of many peoples lives in Chatham County.

Chatham Mills produced high quality woven labels for the next 70 plus years. At one time, Chatham Mills was considered the largest producer of woven labels in the world and produced labels for some of the worlds best known brands and businesses. Examples include Coca-Cola, Mercedes Benz, Marshall Fields, and Saks Fifth Avenue to name a few. Occasionally some labels would disappear from the Mill, especially labels like Saks Fifth Avenue and would appear sewn into the clothing of some of the more brand conscious residents of Pittsboro. (This story was told by a former member of the Chatham County Commissioners who will remain a confidential source).

During the course of the Mills history, many people were associated with the Mill and worked there for multiples of decades. Mr. Ralph Riddle, a former Mill manager was employed for 43 years. Mr. Johnnie Farrar worked for the Mill for 34 years as did several of his brothers. The number of people whose lives the Mill touched over the years is numerous. Through company sponsored events, to working together, close bonds and friendships were formed and have lasted for generations. People married, had children, and families grew up with Chatham Mills as a part of their lives. In talking with long time residents of the area, almost everyone has a connection to the Mill, either having worked there or having friends or relatives who worked there. In 1996, Chatham Mills ceased production and closed its doors, a victim of technology and changing markets. The machinery that was in use at the time the mill closed had been cutting edge technology in its day and was used for many decades. The machinery in use at the time of closing dated back to the early part of the 20th century and was no longer cost effective even though the quality of the product exceeds the product available today.

In 1997, the property was purchased by Chatham Mills Development Corp. . With a belief and a vision that this architectural gem of a building had a continuing role to play in the economic and cultural life of Pittsboro and Chatham County, the building and site have been placed on the National Register of Historic Places and renovation began following the Secretary of the Interior's standards for renovations of historic structures. Chatham Mills is currently home to several businesses including UNC Dialysis, the offices of UNC Hospice, Chatham Market Place, Hobbs Architect, Chatham Transit, Starrlight Mead, Carolina Outreach, Joy of Movement Dance Studio, Mirror Creative-[This] Art Design Studio, Chatham Mills Performing Arts and Special Events Center, Chatham Mills Farmers Market, and Chatham Mills managing offices. Chatham Mills has been the site of art shows, "Loom" curated by Jeff Waites and performances of the play "Millworker" and a production of Faust. Check the schedule for upcoming events. Chatham Mills continues to play an important role in the community as the county and town grow, and develop.