Kelly-Moore Paints Shuts Down After 78 Years of Operation

Kelly-Moore Paints, the renowned Bay Area paint company, has declared its total and permanent shutdown. The declaration puts an end to 78 years of robust operations and, most notably, its various stores across the country. It’s a significant blow not just to the company but to countless professionals and enthusiasts who relied on Kelly-Moore’s products and services.

As the business winds down, Kelly-Moore confirmed it would fulfill existing orders, but the closure would be absolute afterward. Despite the company’s best efforts, filing for bankruptcy under Chapter 11 wasn’t a viable solution.

This unfortunate turn of events has provoked reactions of deep disappointment and sadness from the company’s leadership. CEO Charles Gassenheimer appreciated the commendable efforts of the entire Kelly-Moore team. Their constant innovation and dedication to servicing professional painting contractors were not enough to save the sinking ship.

Pleuger Chemicals, the current owner that acquired Kelly-Moore in 2022, found itself neck-deep in legal obligations. This was due to previous court battles that spanned three decades involving asbestos usage in Kelly-Moore’s cement and texture products. Although the company phased out asbestos use by 1981, persistent lawsuits have cost Kelly-Moore a massive $600 million.

Despite Pleuger Chemicals recruiting Gassenheimer to salvage the business, the continuous wave of lawsuits couldn’t be stopped. The company’s future asbestos-related responsibilities were estimated to be over $170 million, another massive blow to the already struggling company.

Kelly-Moore Paints was once a significant player in the paint industry, one of the largest independent paint companies in America. Founded by William E. Moore and William Kelly, two ex-Glidden employees, in 1946, Kelly-Moore rose to prominence among contractors and builders from its humble beginnings in San Carlos.

As Kelly-Moore wraps up its operations, the company aims to fulfill previously placed customer orders as much as possible with the existing inventory at the Union City distribution center. However, the closing has already led to 700 layoffs, and the manufacturing plant in Hurst, Texas, is also set to shut down.

Gassenheimer expressed his sympathetic regards to the loyal employees, customers, industry partners, and communities that have consistently supported Kelly-Moore throughout its long history. This was the last resort for the company after scrutinizing all other potentially viable alternatives, a regrettable end to a longstanding legacy.