Kelly-Moore Paints Furloughs 700 Employees, Halts Dallas-area Paint Plant Operations

Irving-based Kelly-Moore Paints Co. will temporarily cease operations at its paint manufacturing plant in Dallas-area and seek new investors to help turn the company around, according to a Jan. 8 announcement. Most of the company's retail stores will remain open and will use existing inventory to fulfill orders.

Kelly-Moore CEO Charles Gassenheimer said in a statement: "I am saddened to have to furlough valuable employees, and we sympathize with each of them who will be temporarily absent while we seek new capital. This is a decision we must make as we deal with pressing financial issues."

Founded in 1946, Kelly-Moore operates 157 stores and more than 120 dealer locations in Texas, California, Nevada and Oklahoma.

The company did not provide details about its financial problems but cited legal obstacles. The company has been embroiled in lawsuits related to past uses of asbestos in cement and texturing products for decades.

The cases limit the company's ability for several years to reinvest in itself and address issues such as supply chain challenges exacerbated by the pandemic. Miami-based investment firm Flacks Group also inherited legacy debt after acquiring Kelly-Moore in October 2022, including unpaid back rent and previously unpaid sales and use taxes.

Kelly-Moore announced last April that it would move its headquarters from Northern California to Irvine. The company selected a 15,000-square-foot office space at 500 E. John Carpenter Freeway and viewed the relocation plan as a way to be closer to the Hurst manufacturing site. The Irvine City Council also awarded Kelly-Moore a $75,000 economic development grant.