Kelly-Moore Paints announced closures of all its stores nationwide, which includes stores in San Pablo and Albany, effective immediately.
Only the company’s distribution facility in Union City will remain operating to fulfill previously placed customer orders from existing inventory, to the extent possible, according to the company’s news release.
“Kelly-Moore employees will be fully compensated for regular time worked, and management will continue its efforts to collect receivables to pay all accrued benefits including Paid Time Off,” the release stated.
Kelly-Moore Paints was called a “distressed business” upon its acquisition by Pleuger Chemicals last year. For more than 30 years, the company has grappled with thousands of asbestos litigation claims related to its past use of asbestos in cement and texture products. While the practice was discontinued in 1981, Kelly-Moore Paints faces future related legal liabilities estimated at over $170 million, and still carries legal liabilities in the form of unpaid sales and use taxes by previous ownership.
Supply chain challenges exacerbated by the COVID-19 pandemic only worsened the company’s financial situation, the company said. Efforts to seek support from investors to keep operations going were unsuccessful.
The company reportedly leases all of its facilities.