Acme Brick has announced it will end brick production at its Jonesboro plant on December 31, 2026, affecting 27 employees, according to the company’s human resources director, Gary Grant. However, sales, yard, and distribution operations in Jonesboro will remain operational to serve local contractors and the public.
The company disclosed the decision in an October 23 letter, signed by Acme Brick President Ed Watson, naming the Jonesboro plant as one of three facilities slated for closure. The others include locations in Montgomery, Alabama, and Tulsa, Oklahoma. Acme stated that these closures are part of a broader strategy to realign operations with market conditions and improve long-term profitability.
“These changes are part of an effort to better align our operations with market conditions, improve profitability, and position Acme for long-term success,” Grant said.
According to the letter, employees at affected sites were informed of the decision during internal meetings held on October 22, before broader public communication the following day. The decision, Watson noted, was unrelated to employee performance, emphasizing that the driving factors extended beyond the control of the workforce.
The company’s business reached its peak in 2022, but profitability has since failed to return to what it considers an acceptable level, Watson wrote. For certain locations, including Jonesboro, expectations for sustainable growth remained limited.
Severance plans for affected employees were outlined in company documents provided to NEA Report. Benefits under Acme’s severance policy are determined by an employee’s tenure and capped at 26 weeks of pay, which is generally issued as a lump sum. Example calculations provided in the policy indicate that an employee with 30 years of service would receive approximately 14.5 weeks of pay. Employees must sign a release agreement for severance eligibility, the policy states, and benefits may not apply in cases where employees are offered transfers to comparable positions.
One employee's spouse reportedly voiced concerns over the severance terms offered by the company.
The restructuring also includes additional plant closures, changes to sales locations, and the closure of distribution centers in Montgomery and Carrollton, Texas. Additionally, Acme will be exiting the flooring business as part of the reorganization, Watson said. The company plans to provide transition support to affected employees, including benefits information, outplacement services, and internal opportunity evaluations.
Grant reiterated that the company’s primary focus remains on serving its customers and stabilizing its business for the future.