Renowned paint store chain Kelly-Moore Paints is shutting down all its operations nationwide. This decision comes after 78 years in business, caused by major legal and financial problems.
Charles Gassenheimer, the CEO of the Texas-based company, expressed his deep disappointment about this outcome. He shared that they couldn't overcome these challenges despite every effort to save the business.
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Kelly-Moore Paints Strives to Fulfill Orders During Closure Process
As Kelly-Moore Paints begins closing down, they are still working hard to complete existing customer orders as much as possible. These orders will be fulfilled using the stock from their main distribution center in Union City, California.
However, all other company facilities are being shut down immediately. This includes the manufacturing center in Hurst, Texas, and all of its retail stores, which were all rented properties.
The paint company has been burdened with lawsuits for years due to asbestos used in cement and texture products. Established in San Carlos, California, in 1946, the company was started by William Kelly and William Moore.
In a statement on its website, Kelly-Moore Paints, the top independent paint brand in the U.S., emphasizes its unique position in the market. The company prides itself on being large and reliable yet maintaining a personal touch in its customer relationships.
Striking a balance between a small family-run business and a large corporation, Kelly-Moore focuses on enhancing the painting experience. They do this by offering top-notch, innovative products, outstanding service, and a commitment to go the extra mile for every customer.
The company assures that its employees will receive full pay for the work they have done. The management is also committed to collecting any outstanding payments to ensure all benefits, including Paid Time Off, are paid to the employees.
Earlier this week, Kelly-Moore announced that around 700 employees would be temporarily laid off. This was alongside the halt in operations at its manufacturing plant. At that time, the company was hopeful as it was in talks with several potential investors to restart full operations.
Despite efforts and guidance from their financial advisor, Houlihan Lokey, no investors have come forward with a firm offer, and the company hasn't been able to find the necessary funding to keep running.
Kelly-Moore Closure: CEO Expresses Deep Disappointment
"I'm extremely disappointed and saddened by this outcome, as the entire Kelly-Moore team made incredible efforts to continue innovating and serving the unique needs of professional painting contractors," said CEO Gassenheimer in a recent statement.
He reflected on the company's commitment since the beginning, emphasizing that the goal was always to revive the business if possible.
"Sadly, no matter how great the Kelly-Moore team, products, and reputation for service, we simply couldn't overcome the massive legal and financial burdens that have been weighing on the Company for many years," he added, pointing out the insurmountable challenges that led to the company's closure.
In 2022, Pleuger Chemicals acquired Kelly-Moore, appointing Gassenheimer as CEO to improve its finances. The company faced asbestos lawsuits for 30 years due to past product use until 1981, costing around $600 million in settlements. Ongoing cases led to estimated future liabilities exceeding $170 million.
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