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VIDALIA, La. — Vidalia Mills is currently closed and the gate locked, but only temporarily, a company spokesperson said Friday.

The denim jean manufacturing company located at the former Fruit of the Loom factory at 1 King Timahoe Drive, has been closed since before Thanksgiving. However, when contacted Friday a company spokesperson said that the closure is temporary while the company seeks new investors to fund its operations.

The company released a statement Friday afternoon about the closure.

“Vidalia management is working to get past payroll issues funded as quickly as possible and to restart operations after the New Year,” a spokesperson said. “Vidalia management deeply regrets the hardship this has caused to employees and stakeholders. The issue was unforeseen and beyond the Company Management’s control and management is working to raise additional capital from new investors and expects to solidify additional capital commitments in the near future. The Company does not plan to shut down.”

No timeframe for reopening the factory was provided at the time of this report. Included in the statement released Friday was a positive outlook on the effect President-elect Donald Trump and his administration will have on the industry.

“The Company’s long-term prospects with its innovative processing technology and unique product mix are well positioned to benefit from changes in trade and manufacturing policy outlined by (the) incoming Trump Administration,” the spokesman said.

No further information was released.

The textile mill once employed nearly 100 workers, one of Vidalia’s largest employers, before laying off a third of its workforce in October. The company attributed these layoffs to “a strategic operational shift aimed at increasing productivity and enhancing Pima yarn production capabilities.”

A company statement released in October says, “While this decision was not taken lightly, it is a critical step to align our business with the evolving demands of the textile industry.

Vidalia is investing in the installation of advanced carding and opening equipment that will allow them to triple Pima yarn production. This expansion will be supported by significant investments in precision climate control and advanced filtration systems, ensuring that we continue to meet the highest standards of quality and efficiency. These enhancements will enable Vidalia to maintain their commitment to producing premium Pima yarn while scaling operations to meet growing market demands.”

Austin Watson, a company spokesperson, further stated that “All employee wages — either active or inactive — as (well as) promised bonuses will be paid.”

Current and past workers with any concerns should contact the company human resources manager Joe Parker with any questions at J.parker@vidaliamills.com.

Vidalia Mayor Buz Craft when contacted Friday said the apparent struggle Vidalia Mills is having with funding its operation and paying employees is “unfortunate” but not something the town can do anything about as Vidalia Mills is a privately owned industry.
“We’re doing all that we can to take care of the town’s business and that’s all I can say on that,” he said.

Craft has previously said that Vidalia Mills, since purchasing the factory from the town in 2018, had contributed millions of dollars to the town in taxes and utility payments, not to mention creating jobs.

“If I had it to do all over again, I wouldn’t change a thing,” he said of the town’s business with Vidalia Mills.

The town initially leased the Fruit of the Loom facility to “Vidalia Industrial Facilities LLC” in March of 2017. The town negotiated the purchase of the factory with Vidalia Mills — which at the time was only identified as “Project Blue” — in secrecy. The town signed a nondisclosure agreement in order to help secure the industrial development while it was still only a prospect, which is perfectly legal, Craft said.

Vidalia Mills later signed closing documents agreeing to purchase the facility for $12 million with $8 million of that purchase price being granted back to the industry for capital improvements to the site. The grant was facilitated by Natchez Inc., with former Concordia Economic Director Heather Malone acting as the town’s representative. When Malone resigned from her position with Natchez Inc. in 2021, the town ceased paying Natchez Inc. for her salary and ceased its involvement with Natchez Inc.

The grant to Vidalia Mills was subject to the facility meeting certain benchmarks for its payroll, with Natchez Inc. being responsible for the “clawback” of those funds if the company failed to meet those benchmarks, Craft said.

Within a year, Vidalia Mills had spent all of those funds. Craft said the town had hired attorneys to investigate whether the town could recoup the grant money.