Kelly-Moore Paints Shuts Down Operations Amid Legal Liabilities
Irving-based paint manufacturer Kelly-Moore Paints announces closure following unsuccessful attempts to attract new investors and mounting legal liabilities.
Kelly-Moore Paints, an Irving-based paint manufacturer, has announced its closure after ceasing operations at its manufacturing plant in Hurst and furloughing around 700 employees. The company cited unsuccessful attempts to secure new investors and legal liabilities as the reasons for its decision. Despite efforts to continue innovating and serving the needs of professional painting contractors, the company was unable to overcome the financial and legal burdens that have plagued it for years.
Failed Attempts to Attract New Investors
Kelly-Moore Paints revealed in a press release that its efforts to attract new investors had been unsuccessful. The company’s ownership group had hoped to fix the business after acquiring it last year, but the challenges proved insurmountable. Despite the dedication and hard work of the Kelly-Moore team, the company was unable to overcome the financial obstacles it faced.
Legal Liabilities and Asbestos Lawsuits
One of the major factors contributing to Kelly-Moore Paints’ closure is the legal liabilities it has faced for years. The company has been embroiled in lawsuits related to its previous use of asbestos in cement and texture products. Although the practice was discontinued in 1981, the company has still been dealing with the repercussions. These legal battles have placed a significant financial burden on the company, making it increasingly difficult to sustain operations.
Employee Compensation and Benefits
Kelly-Moore Paints has assured its employees that they will be paid for the time worked. The company has also pledged to continue its efforts to collect on bills in order to pay accrued benefits, including paid time off. While the closure is undoubtedly disappointing for the employees, the company is making an effort to ensure that they are properly compensated for their work.
Fulfilling Existing Orders
Despite the closure, Kelly-Moore Paints aims to fulfill as many previously placed orders as possible. The company plans to utilize the inventory at its distribution facility in Union City, California, to meet customer demands. This commitment to fulfilling orders demonstrates the company’s dedication to its customers, even in the face of its own closure.
Conclusion: The closure of Kelly-Moore Paints is a result of unsuccessful attempts to attract new investors and mounting legal liabilities. Despite the company’s efforts to overcome these challenges, the financial burden proved too great. The closure will have a significant impact on the employees and the painting contractor community that relied on the company’s products and services. As Kelly-Moore Paints ceases operations, it serves as a reminder of the challenges faced by businesses in a competitive and legally complex environment.