The owner of Minnesota-based Arctic Cat will suspend manufacturing operations indefinitely at its factories in Thief River Falls and St. Cloud once planned production in the first half of 2025 is complete.
Textron Inc. disclosed the news in a Wednesday filing with the U.S. Securities and Exchange Commission. The plant in Thief River Falls employs some 500; a few dozen work in St. Cloud.
On Thursday, Brandon Haddock, Textron’s director of communications, told the Forum News Service that the Rhode Island-based conglomerate is “exploring strategic alternatives regarding the future of the powersports business,” given a decline in demand and subsequent need to cut costs.
“Arctic Cat remains open for business with respect to selling current inventory and providing aftermarket support and services to our existing installed customer base,” Haddock’s statement said. “Our sales organization, customer service teams, aftermarket distribution centers, and other functions are ready to assist our dealers and loyal customers. We are committed to providing the service and support to keep our thousands of loyal customers riding and enjoying Arctic Cat vehicles.”
After Arctic Cat’s previous financial struggles, Textron acquired the brand in 2017 and made upgrades to the Thief River Falls factory, something that gave hope to the mayor of the northwestern Minnesota city.
“If that happens, maybe there won’t be that big of a gap,” Brian Holmer said. “We have pretty resilient workers up here, as far as their work attitude and everything else, so if somebody else takes over that place, I’m sure they’d be able to jump right into a different facility and understand the work.”
Production will continue as planned to fulfill existing customer commitments but, once those builds are complete, operations will cease indefinitely. Manufacturing employees at the Thief River Falls and St. Cloud facilities will be let go. Those who work through their designated completion date will be offered severance benefits, according to the statement.
“We will monitor industry conditions throughout this suspension, and make further announcements about our operational plans when we have more information to share,” the statement said. “We thank our employees, dealers, customers and supporters for their loyalty, patience and understanding as we weather the difficult conditions facing our business and our industry.”
Holmer hopes that the city’s workforce, which he believes to be strong, will have places for those who will be out of a job come mid-2025 — particularly DigiKey, the other top employer for the city. He intends to stay involved in the issue even after a new mayor — Mike Lorenson — takes over in January.
“As a member of the community, I’ll do my best to make sure that facility has a new occupant once Arctic Cat closes it down,” Holmer said.
In the meantime, he plans to make some phone calls to the Minnesota Department of Economic Development to see if there any resources to help during this time. He also hopes to assist Lorenson with navigating next steps.
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