According to Hagen, disagreements within the company’s ownership group contributed to the closure. She said Kato Roofing was unable to secure required signatures for bonding in July, resulting in the loss of several projects, including its three largest awards of the year. Those projects represented revenue equal to 100% of the company’s previous year’s sales, she said.

Hagen said the closure came despite strong operating momentum. CEO Danny Shaw had led Kato Roofing to what she described as the strongest first half of sales in company history, with bookings on pace to increase 300% year over year.

“Continuing operations is no longer financially viable,” Hagen said.

Hagen, who had been a leader with the family-owned company for eight years, thanked employees, customers and community members for their support. She also recognized her father, Jeff Hagen, who had been involved in the business for about three decades.

The company said it is working to support employees, customers and partners through the transition.

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