Restructuring
In 1999, the company began closing branches and selling company owned properties to show a profit to shareholders. The organization reduced the number of its shops as a result of this practice, with most of its remaining centers in the western States, where rust and corrosion is less likely to be a problem.
On February 18, 2009, Earl Scheib and Kelly Capital LLC, a private equity firm, announced the signing of the merger agreement. Kelly Capital LLC acquired the company in the second quarter of 2009 following shareholder approval of a merger agreement.
Earl Scheib ceased operations nationwide on July 16, 2010. The corporation can no longer honor its customer warranties. The company allowed many of its shop managers to become a small business owner by allowing them to purchase the equipment and fixtures in their shops, and to use the Earl Scheib name for their business. Many shop managers became business owners under this model. The majority of shops were closed; leased locations were turned back over to the Landlords, and if the real estate was owned by Scheib, then those locations were sold.
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