UPDATE: Vidalia Mills says lay offs are part of ‘strategic operational shift’

Published 2:46 pm Thursday, October 24, 2024

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VIDALIA, La. — Vidalia Companies Inc., also known as Vidalia Mills, has announced that the layoff of 35 employees is part of “a strategic operational shift aimed at increasing productivity and enhancing Pima yarn production capabilities.”

A company statement released Wednesday states, “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.”

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Vidalia Mills CEO Dan Feibus added, “While this is a challenging moment for our workforce, we are focused on building a stronger foundation for the future,” said CEO Daniel Feibus “These operational upgrades will position us to be more competitive in the global market, ensuring our continued leadership in premium yarn production.”

The company states it will “continue to prioritize innovation, quality, and sustainability in operations,” adding “investments in new technology and processes reflect its dedication to delivering superior products and maintaining a sustainable and competitive edge in the textile industry.”

Vidalia Mills also stated it anticipates expanding its workforce before year end, adding significantly to its hourly and salaried payroll.

Multiple Vidalia Mills employees reported being laid off on Friday, Oct. 18, a day they were expecting to receive paychecks for work already performed but did not.

“I don’t know what I’m going to do,” said Raymond Maples, a previous employee at Vidalia Mills. He added the mill was not operating at full capacity when he was laid off.

This was also not the first time at Vidalia Mills he and other employees were late getting paid, he said.

In September, Feibus cited internal issues” as the cause of employees not receiving their pay and promised employees a “hardship bonus” to stay on.

“I saw where they’ve told the paper that we were supposed to get a bonus and they haven’t done that either,” Maples said. “As far as the work, it wasn’t that bad. The only bad part was waiting to get paid. That isn’t how you’re supposed to operate a business.”

Adrian Bonds said he too worked at Vidalia Mills until Friday’s mass layoff and had not been paid for his work.

“I still haven’t been paid and now I probably never will be,” Bonds said on Monday. “This payroll period should’ve been closed a week ago and it’s still open.”

Bonds said he since has tried applying for unemployment but has not been successful in getting Vidalia Mills to sign off on his application.

Austin Watson, a company spokesperson, said “All employee wages — either active or inactive — as (well as) promised bonuses will be paid. He added those workers should contact the company human resources manager Joe Parker with any questions at J.parker@vidaliamills.com.

“Vidalia expects to hire significant numbers of additional staff when it’s cotton processing goes back into operation in late November,” Watson said.

When Vidalia Mills purchased the former Fruit of the Loom from the Town of Vidalia for $12 million in 2018, the town signed a contract with the company to give back $8 million of the purchase price for capital improvements to the site if they employed 300 people in two years.

According to Feibus, Vidalia Mills had met its end of the bargain by having a $9 million payroll with approximately 150 employees, about half the number of jobs promised with higher salaries.

Vidalia Mayor Buz Craft said the Town hired two attorneys to look into the issue. He added the Town is “not out any money for it.”