The Barnai Worsted Company was incorporated in 1914 and named for William Barnett, a menswear buyer for Sears, Roebuck and for William Naismith, an agent of the Scotia Worsted Mills. The company produced menswear and worsted goods and also fabricated heavy shirting flannels for the War Department during World War I. According to government records, the company was paid $1.72 per yard for an order consisting of 50,000 yards of cloth. The enterprise began with 30 looms and was originally housed in a nearby building, since destroyed.
The current building at 42 South Main Street was constructed c.1919 and housed the dyeing and finishing departments where woolen worsted cloth and yarn were processed. By 1924, the original owners were bankrupt and had debts totaling $350,000. Sylva Lareau, a Quebec native and naturalized citizen, took charge of operations and discharged the debt within 5 years. In 1929, Lareau purchased the business and he and his 7 sons kept it in operation for several decades.