IRVING, Texas — Irving-based Kelly-Moore Paints announced Friday that it is going out of business shortly after it stopped operations at its manufacturing plant in Hurst and furloughed approximately 700 employees across the company.
The company said in a press release that its attempts to attract new investors were unsuccessful and cited “legal liabilities.” The Friday announcement said the company “plans to immediately cease operations” but plans to fulfill as many previously placed orders as possible from inventory at its Union City, California distribution facility.
The company says employees will be paid for time worked and pledged to continue efforts to collect on bills to pay accrued benefits, including paid time off.
"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.”
"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.”
The company has faced lawsuits for years in connection with previous use of asbestos in cement and texture products, it said in the news release, a practice that was discontinued in 1981.
Founded in 1946, Kelly-Moore operated 157 stores across Texas, California, Nevada, and Oklahoma and more than 120 dealer outlets. The company announced last April it would move its headquarters to Irving from Northern California.