SACRAMENTO, Calif — Kelly-Moore Paints is closing after nearly 80 years in business.
The company was founded by back in 1946 by William Kelly and William Moore. It announced the closure on Jan. 12, saying they plan to start an "out-of-court wind-down" of its business.
The company recently announced a 700-employee furlough and an operational halt at its manufacturing facility. But ultimately, the company said they didn't have the money to continue operations.
During the process, Kelly-Moore Paints will try to fulfill previously placed orders from their existing inventory in Union City, CA. All other facilities will be closed.
"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 Charles Gassenheimer. “The ownership group’s commitment from day one was to fix the business if we could. 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.
Officials said employees will be fully paid for regular time work.
The company has been grappling with asbestos litigation claims related to their past use of asbestos in cement and texture products from prior ownership. The practice was discontinued in 1981, but the legal settlements and defense cases impacted the company's ability to reinvest in itself.
Other impacts included legal liabilities from the prior ownership group. While Pleuger Chemicals acquired Kelly-Moore Paints in 2022, officials said that also included millions in previously unpaid sales and use taxes.
“Our owners took on significant financial risks in the acquisition last year,” continued Gassenheimer. “Unfortunately, despite their extraordinary efforts after acquiring this distressed business, they simply couldn’t overcome the unexpectedly large challenges, and will be exiting the business.”
Kelly-Moore has locations in the following cities in Northern California:
- Carmichael
- Citrus Heights
- Davis
- Elk Grove
- Fairfield
- Folsom
- Lodi
- Manteca
- Modesto
- Rancho Cordova
- Sacramento
- Rocklin
- Sonora
- South Lake Tahoe
- Stockton
- Tracy
- Turlock
- Truckee
- Vacaville
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