Is Arctic Cat going out of business? That question has been buzzing across the powersports industry.
In November 2024, Arctic Cat’s parent company, Textron, announced a full Arctic Cat production pause after completing its 2025 model year, according to Snow Goer, citing softening market demand and excess dealer inventory.
The move resulted in more than 400 Arctic Cat layoffs, leaving many entrepreneurs and enthusiasts wondering if one of the most iconic names in snowmobiles and ATVs was about to disappear.
Today, the key question remains: Is Arctic Cat still in business? And what does the Arctic Cat future look like for dealers, customers, and industry players?
In this article, we will explore the full story behind Arctic Cat’s recent challenges, why the Arctic Cat production pause happened, the impact of the Arctic Cat acquisition, and what the future holds for the brand.
Key Takeaways
- Arctic Cat is not going out of business but is undergoing a major ownership and production transition.
- The Arctic Cat production pause and layoffs were driven by market conditions and excess inventory.
- A recent Arctic Cat acquisition by Brad Darling signals a strategic push to revive the brand by 2026.
- Entrepreneurs and customers can expect continued support and future opportunities as Arctic Cat repositions for growth.
A Quick History of Arctic Cat
Arctic Cat’s story is one of grit, innovation, and survival in the rugged world of snowmobiles and off-road machines.
The company was founded in 1960 by Edgar Hetteen, a pioneer in the snowmobile industry who previously co-founded Polaris. Based in Thief River Falls, Minnesota, Arctic Cat quickly made its name by producing high-performance snowmobiles that could handle North America’s harshest winters.
But like many companies in seasonal industries, Arctic Cat has weathered tough times. In 1981, the company faced significant financial difficulties and was forced to shut down operations.
Many believed the brand was finished. Yet just two years later, in 1983, a group of former employees and investors brought Arctic Cat back to life under a new company structure, a revival that cemented its legacy as a brand built to endure.
Over the years, Arctic Cat expanded into ATVs and side-by-sides, becoming a trusted name among hunters, farmers, adventurers, and small business owners.
In 2017, the company was acquired by Textron Inc., a global industrial giant known for aviation brands like Cessna and Bell. Under Textron, Arctic Cat launched key innovations like the C‑TEC2 engine and the lightweight Catalyst chassis, designed for improved performance and efficiency.
Still, the powersports market became increasingly volatile. By late 2024, facing declining demand and oversupplied dealers, Textron announced an Arctic Cat production pause, leading to over 400 Arctic Cat layoffs and signalling a major turning point.
But once again, Arctic Cat would prove its ability to survive, this time through a strategic Arctic Cat acquisition by former executive Brad Darling in 2025, setting the stage for yet another comeback.
Key Events in Arctic Cat’s History
Over its six-decade journey, Arctic Cat has faced both triumphs and challenges, from innovative milestones to temporary shutdowns and bold revivals.
Below is a highlight of the brand’s most significant moments:
| Year | Event |
|---|---|
| 1960 | Arctic Cat was founded by Edgar Hetteen in Thief River Falls, Minnesota. |
| 1981 | Arctic Cat shuts down due to financial difficulties and ceases operations temporarily. |
| 1983 | Arctic Cat is revived by former employees and investors under a new company structure. |
| 1996 | Arctic Cat enters the ATV market, expanding beyond snowmobiles. |
| 2017 | Acquired by Textron Inc.; begins major investment in product innovation (C‑TEC2 engine, Catalyst chassis). |
| Late 2024 | Arctic Cat production pause announced by Textron due to excess inventory and softening demand. |
| Late 2024–2025 | Over 400 Arctic Cat layoffs as part of a cost-cutting and production pause strategy. |
| April 2025 | Arctic Cat acquisition completed by Brad Darling and investors; brand enters new ownership phase. |
| 2026 (Planned) | Production restart under new ownership; Arctic Cat targets new snowmobile and off-road vehicle launches. |
Arctic Cat at a Glance
Before we dive deeper into whether Arctic Cat is going out of business, here is a quick look at the company’s current profile, who owns it, what it sells, and where it stands in the powersports industry today.
| Detail | Information |
|---|---|
| Parent Company | Privately held (acquired in 2025 by Brad Darling & investor group; previously owned by Textron Inc.) |
| Headquarters | Thief River Falls, Minnesota, USA |
| Year Established | 1960 |
| Industry | Powersports (Snowmobiles, ATVs, Side-by-Side Vehicles) |
| Business Model | Dealer Network + Online Sales + Parts & Accessories |
| Ownership | Privately Owned (2025–present); formerly Textron Inc. (2017–2025); Independent prior to 2017 |
| Brands Managed | Arctic Cat Snowmobiles, Arctic Cat ATVs, Arctic Cat Side-by-Sides, Arcticwear Apparel & Gear |
| Website | arcticcat.txtsv.com (current official site under Textron transition) |
The Current Situation: Is Arctic Cat Still In Business?
Is Arctic Cat going out of business? The short answer is no, but the company is navigating a significant period of change that has caused understandable concern among dealers, customers, and industry players.
Arctic Cat’s Production Pause Sparked Industry Concerns
In late 2024, Arctic Cat’s parent company, Textron Inc., made the surprise announcement of a full Arctic Cat production pause.
The decision was driven by a combination of factors: weakening demand across the global powersports market, excess inventory at the dealership level, and a strategic shift within Textron to streamline operations.
As part of this move, production at Arctic Cat’s core facilities in Thief River Falls and St. Cloud was halted, and over 400 Arctic Cat employees followed.
Many within the industry feared this might signal the end of Arctic Cat as a viable brand, raising the very question at the heart of this article: Is Arctic Cat going out of business?
Sales and Support Continued Even as Production Halted
However, Textron was careful to make it clear that Arctic Cat is still in business, despite the production stop.
The company maintained full dealer support during this transitional phase. Existing 2025 model inventory remained available for sale, and parts, accessories, warranty services, and customer support operations continued uninterrupted.
This approach ensured that Arctic Cat customers and dealerships could continue doing business while longer-term options for the brand were being explored.
Arctic Cat’s New Ownership Signals a Planned Comeback
A turning point arrived in April 2025, when a private investment group led by Brad Darling, a former Arctic Cat executive and current CEO of Canadian powersports company Argo, acquired the Arctic Cat brand and its associated businesses.
The Arctic Cat acquisition included ownership of the snowmobile and off-road vehicle lines, as well as the Arcticwear apparel and accessories divisions.
Speaking after the acquisition, Darling confirmed that the new leadership team is committed to reviving Arctic Cat’s product lineup.
Production is set to resume with the 2026 model year snowmobiles, followed by new ATVs and side-by-side vehicles. The goal is to re-establish Arctic Cat as a strong player in the powersports industry while staying true to the brand’s performance-focused legacy.
Arctic Cat Is Still in Business and Focused on Its Future
As we reach mid-year, it is clear that Arctic Cat is still in business, though currently in transition. Manufacturing will remain paused through the remainder of the year as preparations continue for the 2026 product relaunch.
In the meantime, dealers are selling through existing stock, warranty, parts, and service support remains fully active, and the new ownership group is building a revitalised strategy to ensure Arctic Cat remains competitive in the years ahead.
While uncertainty remains, one thing is clear: Arctic Cat is not going out of business. Instead, it is poised for a new chapter under leadership that knows and values the brand.
For entrepreneurs, dealers, and loyal customers, this is welcome news and a sign that Arctic Cat’s future still holds promise.
See Also: Is Orvis Going Out of Business? What Recent News Tells You
Why Did Arctic Cat Pause Production?
Arctic Cat, known for its snowmobiles and ATVs, temporarily paused production at various times due to a combination of external and internal factors.
These pauses were strategic, aimed at managing supply chain disruptions and adjusting to market demand. Here is a breakdown of the key reasons:
| Factor | Impact on Production |
|---|---|
| Global supply chain disruptions | Shortages of critical components (e.g., semiconductors) |
| Market demand fluctuations | Need to align inventory with shifting consumer demand |
| COVID-19 pandemic | Factory closures and workforce limitations |
| Cost management strategies | Controlled production to manage rising material costs |
| Operational restructuring | Strategic pauses during corporate reorganisation |
Who Owns Arctic Cat Now?
A key reason why Arctic Cat is not going out of business lies in its recent acquisition. In April 2025, Arctic Cat was acquired by Brad Darling, a former Arctic Cat executive with a deep understanding of the brand and its market.
Darling led a private investor group to purchase the business from Textron Inc., marking a new chapter in Arctic Cat’s storied history.
The acquisition includes ownership of Arctic Cat’s snowmobiles, ATVs, side-by-sides, the Arcticwear apparel line, and its valuable intellectual property.
Under new leadership, Arctic Cat is preparing for a strategic revival aimed at ensuring its long-term competitiveness.
Here is what the acquisition means for the brand and entrepreneurs watching the market:
| Effect | Outcome |
|---|---|
| Leadership stability | Brad Darling, with deep Arctic Cat roots, returns to steer the company. |
| Independent operations | Arctic Cat and Argo will operate as separate brands, avoiding a full merger. |
| Fresh capital injection | Investment group backing fuels revitalisation efforts. |
| Brand renewal | Plans are underway for the 2026 product line and renewed production capacity. |
| Community reassurance | Local plant jobs and dealer trust receive a much-needed boost. |
The Powersports Competitive Landscape and How Arctic Cat Is Holding Its Place
The powersports industry is fiercely competitive, with established giants, niche innovators, and global shifts all influencing the playing field.
As Arctic Cat transitions under new ownership, the brand is navigating this terrain with both challenges and opportunities ahead.
How Arctic Cat Compares to Other Powersports Brands
| Brand | Core Strengths | Market Position | Current Challenges |
|---|---|---|---|
| Polaris | Innovation, broad product range, global reach | Market leader in snowmobiles, ATVs, side-by-sides | Highly competitive, large overhead |
| BRP / Ski-Doo / Can-Am | Premium products, aggressive marketing, and global scale | Strong in snowmobiles and off-road vehicles | Faces rising competition in the U.S. ATV segment |
| Yamaha | Known for engine quality and innovation | Exited the North American snowmobile market in 2025 | Exiting key product segment |
| Arctic Cat | Performance heritage, loyal fan base, niche strength | Smaller brand rebuilding after acquisition | Overcoming the production pause and regaining momentum |
How Arctic Cat Is Holding Its Place
While Arctic Cat currently operates at a smaller scale than Polaris and BRP, it remains a respected brand with unique strengths. Here is how it is holding its ground, and where the new leadership can take it next.
Loyal customers trust Arctic Cat’s heritage.
One major advantage Arctic Cat holds is customer loyalty. Many snowmobilers, hunters, and utility users in northern markets remain loyal to the brand, often preferring its machines for their performance in harsh environments.
This loyalty provides a foundation that the new ownership can build on.
The dealer network remains active and engaged
Despite the Arctic Cat production pause, many of the brand’s dealers stayed committed. They have continued servicing vehicles, selling parts, and maintaining customer relationships.
As production ramps back up, these dealers will be vital partners in helping Arctic Cat reclaim market share. Maintaining strong dealer engagement is a top priority for the new leadership team.
Opportunities are emerging in a shifting market
The recent exit of Yamaha from the North American snowmobile market leaves an opening that Arctic Cat is well-positioned to pursue.
Combined with a refreshed product lineup expected in 2026, this shift could help Arctic Cat capture customers looking for alternatives to the two dominant players, Polaris and BRP.
For entrepreneurs and powersports dealers, this transition phase offers potential upside: positioning themselves early with Arctic Cat could lead to competitive advantages as the brand rebuilds.
Arctic Cat’s future depends on innovation and execution
Ultimately, Arctic Cat’s ability to hold and grow its market position will depend on its ability to launch innovative, high-quality products that meet customer expectations, rebuild and strengthen dealer relationships and leverage its heritage and performance DNA to differentiate from competitors.
With Brad Darling and his team leading the charge, Arctic Cat is focused on delivering exactly that. If they succeed, Arctic Cat could emerge not just as a survivor, but as one of the most compelling comeback stories in powersports.
Lessons Entrepreneurs Can Learn from Arctic Cat’s Story
Beyond the headlines about Arctic Cat’s production pause, layoffs, and acquisition, this story offers valuable lessons for entrepreneurs in every industry.
Arctic Cat’s journey reminds us that even iconic brands face adversity and how leadership choices, market positioning, and strategic adaptability can determine whether a business survives or fades away.
Here are key lessons entrepreneurs can take from Arctic Cat’s experience:
Even strong brands must adapt to changing market realities
Arctic Cat had a strong product lineup and a loyal customer base, yet external market forces such as rising costs, shifting demand, and dealer inventory pressures forced it to pause production. The takeaway? No brand is immune to market shifts.
Entrepreneurs must continuously assess their business environment and be ready to adapt, whether through product adjustments, new sales strategies, or structural change.
Strategic pauses can protect long-term brand value
Textron’s controversial decision to implement an Arctic Cat production pause was not a shutdown, it was a deliberate move to protect the brand’s long-term value.
Rather than flooding the market with discounted products, the company chose to preserve pricing integrity and allow dealers to clear existing inventory.
Entrepreneurs should understand that sometimes, pausing or scaling down is a smart move if it protects the future of the brand.
Leadership and timing matter during a business transition
The fact that Brad Darling, an experienced Arctic Cat executive, led the Arctic Cat acquisition is significant.
In moments of business transition, leadership with deep product knowledge and market insight can make the difference between a successful revival and a failed one.
Entrepreneurs should remember that who leads your business through change is as important as the change itself. Bringing in leaders who know the brand and the customers is critical.
Brand loyalty and community relationships are long-term assets
Arctic Cat’s ability to hold its place during this difficult period comes down in large part to dealer loyalty and customer trust built over decades. Many dealers stood by the brand, and many customers remained committed to Arctic Cat products and services.
For entrepreneurs, this underscores the importance of investing in strong, genuine relationships with your customers and partners. In tough times, these relationships are what sustain the business and pave the way for recovery.
Conclusion
Is Arctic Cat going out of business? The evidence says no, but the company is undergoing a carefully managed transition.
With a new ownership group led by Brad Darling, a planned production restart in 2026, and continued dealer and customer support, Arctic Cat is preparing for a new chapter.
For entrepreneurs, dealers, and enthusiasts, the key takeaway is that Arctic Cat remains in business, with a future built on innovation, brand loyalty, and a renewed strategic focus.
The coming months will be critical, as the new leadership team works to deliver products and rebuild momentum.
One thing is certain: Arctic Cat’s resilience, proven once in its historic 1983 revival and again now, shows that with the right leadership and market understanding, even legacy brands can adapt and thrive in today’s competitive landscape.
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FAQs About Arctic Cat’s Future
Is Arctic Cat going out of business?
No. While Arctic Cat temporarily paused production in late 2024, the brand has been acquired by new owners and is preparing to resume manufacturing in 2026.
Is Arctic Cat closing down?
No, Arctic Cat is not closing down. The company remains in business, with plans to relaunch production and refresh its product lineup starting in 2026.
Is Arctic Cat staying in business?
Yes. Arctic Cat continues to support its dealers and customers and is planning for a new era under its new ownership group.
Is Arctic Cat in trouble?
Arctic Cat faced significant challenges, including a production pause and market pressures, but the brand has now stabilised under new ownership and is working toward a strong comeback.
What company bought out Arctic Cat?
In April 2025, Arctic Cat was acquired by a private investor group led by Brad Darling, a former Arctic Cat executive and the current CEO of Argo.
When will Arctic Cat start making products again?
Production of new Arctic Cat snowmobiles is expected to resume for the 2026 model year, with ATVs and side-by-sides to follow.
Can I still buy Arctic Cat parts and accessories?
Yes. Dealers continue to offer Arctic Cat parts, accessories, and warranty services. Customers can still buy the current inventory and receive full support.
How does Arctic Cat compare to other brands like Polaris or BRP?
While Arctic Cat is a smaller brand than Polaris or BRP, it remains highly respected in niche markets, especially among snowmobile enthusiasts and northern utility users.
The new ownership team aims to build on this loyalty and reposition the brand for growth.
