THIEF RIVER FALLS, Minn. — Thief River Falls Mayor Brian Holmer believes the impending closure of one of the city’s two biggest employers will undoubtedly have a negative impact on the city but, even as he steps down from his mayoral role in the new year, he plans to step up for his community and ensure that a new industry will fill that gap.

After planned production in the first half of 2025 is complete, Arctic Cat will suspend manufacturing operations indefinitely at its Thief River Falls and St. Cloud facilities, according to a statement from its parent company, Textron Inc. The news broke through a Wednesday, Dec. 18, 8-K filing with the U.S. Securities and Exchange Commission.

“I’d be kidding myself if I say it won’t have a negative impact,” Holmer told the Herald Thursday afternoon, Dec. 19. “It’s going to affect over 500 employees, directly, at Arctic Cat. But it’s also going to affect our region, because some of the parts and stuff are supplied by (local businesses).”

Brandon Haddock, Textron’s director of communications, provided a statement to the Grand Forks Herald on Thursday morning, Dec. 19, which states the company is also “exploring strategic alternatives regarding the future of the powersports business,” which has been determined necessary because of a decrease 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,” the 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 financial struggles years back, Textron Inc. acquired the company and made upgrades to the facility that Holmer hopes will make it appealing to a new buyer.

“If that happens, maybe there won’t be that big of a gap,” he 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 the 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 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.

Even though the effects won’t be fully realized until sometime next year, it’s a major blow to get this news right before the holidays, though suspicions did arise after a recent round of layoffs that included key engineering staff, Holmer said.

“I’m just hoping a Merry Christmas to everybody out there, and hopefully we can get through this,” he said. “The community is all together on a lot of these issues, and this is another one that we have to figure out how we get through it.”

According to past Herald reporting, the plant has at times employed 800 or more. The factory has manufactured snowmobiles, ATVs and side-by-side recreational vehicles, in addition to parts, garments and related accessories.