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Kelly-Moore Paints Announces Plan for Orderly, Out-of-Court Wind-Down of Company Operations

IRVING, TEXAS –January 12, 2024 - Kelly-Moore Paints (“Kelly-Moore” or the “Company”)announced today that the Company plans to immediately cease operations and commence an orderly, out-of-court wind-down of substantially all its business.

During the wind-down process, the Company will continue to endeavor to fulfill previously placed customer orders to the extent possible from existing inventory in Kelly-Moore’s Union City, California, distribution facility. All the Company’s other facilities will be permanently closed effective immediately, including Kelly-Moore’s manufacturing facility in Hurst, Texas, and its retail stores, all of which were leased. 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.


Earlier this week, the Company announced a furlough of approximately 700 employees across the Company’s locations, as well as an operational halt at its manufacturing facility. At the time, the Company had a number of interested investors with which it was working, in hopes of allowing for a return to full operations. Since then, the Company has continued actively seeking new capital to enable a turnaround, with assistance from financial advisor Houlihan Lokey.


Unfortunately, none of the interested investors has stepped forward with a Letter of Intent,and the Company has not secured the additional funding needed to continue operations.

 

Source: Kelly Moore

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