Kato Roofing Closes After Nearly 50 Years in Business

Kato Roofing is permanently closing its operations after nearly 50 years in the commercial roofing industry.

Majority owner Tori Hagen announced the closure in a statement Tuesday, September 15, saying the company had explored alternatives to remain open but ultimately determined that continuing operations was no longer financially viable.

Hagen said disagreements within the company’s ownership team contributed to the business losing several projects. She said the company was unable to reach an agreement on signatures needed for bonding as recently as July, resulting in the loss of several projects, including the three largest projects awarded to the company this year.

According to Hagen, those three projects represented the equivalent of 100% of Kato Roofing’s revenue from the previous year.

The company explored finding new owners or partners who could take over projects, but Hagen said those efforts did not produce a solution that would allow the business to continue.

Kato Roofing has been a family-owned company, and Hagen said her father, Jeff Hagen, was actively involved in the business for approximately three decades. She also recognized the company’s employees and current CEO Danny Shaw for their contributions.

Hagen said Shaw led the company through a period of growth, including what she described as the strongest first half of sales in Kato Roofing’s history. She said the company was on pace to increase year-over-year bookings by 300%.

“Unfortunately, circumstances outside the business resulted in a significant loss of revenue and changed our path,” Hagen said.

Kato Roofing officially closed its operations September 15.

Hagen said the company is working to support employees, customers and business partners through the transition.

Questions or requests for comment can be directed to katoroofingclosure@gmail.com.