Kelly-Moore Paints Announces Closure After Nearly 80 Years in Business

After almost 80 years in business, Kelly-Moore Paints has announced that it will be closing its doors. In 1946, William Kelly and William Moore founded the company. The closure was announced on January 12, with plans to initiate a “out-of-court wind-down” of its business.

In a recent announcement, the company revealed that it will be implementing a furlough for 700 employees and temporarily halting operations at its manufacturing facility. In a surprising turn of events, the company has announced that they are unable to sustain their operations due to financial constraints.

In an effort to meet customer demands, Kelly-Moore Paints is working diligently to fulfill orders from their current inventory in Union City, CA. All other facilities are set to be closed.

“I am deeply disappointed and saddened by this outcome,” expressed CEO Charles Gassenheimer. “The entire Kelly-Moore team has put in incredible efforts to innovate and cater to the specific requirements of professional painting contractors.” The ownership group has been dedicated to addressing the business’s issues since the beginning. Regrettably, despite the exceptional Kelly-Moore team, products, and esteemed service, the Company was unable to surmount the substantial legal and financial challenges that have plagued it for an extended period of time.

Officials have confirmed that employees will receive full payment for their regular hours worked. The company has been dealing with legal claims regarding their previous use of asbestos in cement and texture products under prior ownership. In 1981, the practice was discontinued, which had a significant impact on the company’s ability to reinvest in itself due to legal settlements and defense cases.

Additional consequences arose from the previous ownership group, including potential legal liabilities. In 2022, Pleuger Chemicals made an acquisition by acquiring Kelly-Moore Paints. As part of the acquisition, officials have revealed that there were also millions of dollars in previously unpaid sales and use taxes.

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“Our owners assumed substantial financial risks in the acquisition last year,” Gassenheimer continued. Regrettably, despite their tremendous efforts following the acquisition of this struggling business, they were unable to overcome the unexpectedly significant obstacles and will be discontinuing their involvement in the business. Kelly-Moore has established a presence in various cities across 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

(Source: abc10)

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