----

----

| Delaware                                                            |   | 75-1277589                                |
|---------------------------------------------------------------------|--------|-------------------------------------------|
| (State      or other jurisdiction of incorporation or organization) |   | (I.R.S.      Employer Identification No.) |

|   | Yes  x |   | No o |   |
|--------|------------------|--------|-----------|--------|

|   | Yes  o |   | No o |   |
|--------|------------------|--------|-----------|--------|

| Large      accelerated filer  o                                                  | Accelerated      filer  o |
|--------------------------------------------------------------------------------------------|-------------------------------------|
| Non-accelerated      filer o  (Do      not check if a smaller reporting company) | Smaller      reporting company x    |

|   | Yes  o |   | No x |   |
|--------|------------------|--------|-----------|--------|

| Class                           |   | Outstanding      at April 30, 2009 |
|---------------------------------|--------|------------------------------------|
| Common      Stock, $1 Par Value |   | 7,951,176      Shares              |

----

INDEX

|    |                  |                                                                         | Page    |
|---------|-----------------------|------------------------------------------------------------------------------|---------|
| PART I  | FINANCIAL INFORMATION |                                                                         |
|    |                  |                                                                         |    |
|    | Item 1.               | Financial Statements:                                                        |    |
|    |                  |                                                                         |    |
|    |                  | Condensed Consolidated Balance Sheets                                        |    |
|    |                  | April 3, 2009 (unaudited) and December 31,      2008                         | 3,4     |
|    |                  |                                                                         |    |
|    |                  | Condensed Consolidated Statements of      Operations                         |    |
|    |                  | For the Three Months Ended April 3, 2009 and March 31, 2008      (unaudited) |  5 |
|    |                  |                                                                         |    |
|    |                  | Condensed Consolidated Statements of Cash      Flows                         |    |
|    |                  | For the Three Months Ended April 3, 2009 and March 31,      2008 (unaudited) | 6       |
|    |                  |                                                                         |    |
|    |                  | Notes to Condensed Consolidated Financial Statements      (unaudited)        | 7       |
|    |                  |                                                                         |    |
|    | Item 2.               | Management's Discussion and Analysis of Financial Condition      and         |    |
|    |                  | Results of Operations                                                        | 18      |
|    |                  |                                                                         |    |
|    | Item 4T.              | Controls and Procedures                                                      | 21      |
|    |                  |                                                                         |    |
|    |                  |                                                                         |    |
| PART II | OTHER INFORMATION     | 22                                                                           |
|    |                  |                                                                         |    |
|    | Item 1.               | Legal Proceedings                                                            | 22      |
|    |                  |                                                                         |    |
|    | Item 1A.              | Risk Factors                                                                 | 22      |
|    |                  |                                                                         |    |
|    | Item 2.               | Unregistered Sales of Equity Securities and Use of      Proceeds             | 22      |
|    |                  |                                                                         |    |
|    | Item 3.               | Defaults Upon Senior Securities                                              | 22      |
|    |                  |                                                                         |    |
|    | Item 4.               | Submission of Matters to a Vote of Security      Holders                     | 22      |
|    |                  |                                                                         |    |
|    | Item 5.               | Other Information                                                            | 22      |
|    |                  |                                                                         |    |
|    | Item 6.               | Exhibits                                                                     | 22      |
|    |                  |                                                                         |    |
|    | Signatures            |                                                                         | 23      |

----

index

PARTI  FINANCIAL INFORMATION

Item1.  Financial Statements

KATY INDUSTRIES, INC. AND SUBSIDIARIES

|                                                           |   | April      3, |    |   | December      31, |   |
|----------------------------------------------------------------|--------|---------------|---------|--------|-------------------|--------|
|                                                           |   | 2009          |    |   | 2008              |   |
| CURRENT      ASSETS:                                           |   |          |    |   |              |   |
|                                                           |   |          |    |   |              |   |
| Cash                                                           |   | $             | 855     |   |              | $      | 683 |   |
| Accounts      receivable, net                                  |   |          | 15,220  |   |              |   | 13,773 |   |
| Inventories,      net                                          |   |          | 15,808  |   |              |   | 19,911 |   |
| Other      current assets                                      |   |          | 1,136   |   |              |   | 3,516 |   |
|                                                           |   |          |    |   |              |   |   |   |
| Total      current assets                                      |   |          | 33,019  |   |              |   | 37,883 |   |
|                                                           |   |          |    |   |              |   |   |   |
|                                                           |   |          |    |   |              |   |   |   |
| OTHER      ASSETS:                                             |   |          |    |   |              |   |   |   |
|                                                           |   |          |    |   |              |   |   |   |
| Goodwill                                                       |   |          | 665     |   |              |   | 665 |   |
| Intangibles,      net                                          |   |          | 4,355   |   |              |   | 4,455 |   |
| Other                                                          |   |          | 2,861   |   |              |   | 1,809 |   |
|                                                           |   |          |    |   |              |   |   |   |
| Total      other assets                                        |   |          | 7,881   |   |              |   | 6,929 |   |
|                                                           |   |          |    |   |              |   |   |   |
|                                                           |   |          |    |   |              |   |   |   |
| PROPERTY      AND EQUIPMENT                                    |   |          |    |   |              |   |   |   |
| Land      and improvements                                     |   |          | 336     |   |              |   | 336 |   |
| Buildings      and improvements                                |   |          | 8,691   |   |              |   | 8,686 |   |
| Machinery      and equipment                                   |   |          | 92,772  |   |              |   | 92,693 |   |
|                                                           |   |          |    |   |              |   |   |   |
|                                                           |   |          | 101,799 |   |              |   | 101,715 |   |
| Less      - Accumulated depreciation                           |   |          | (70,672 | )      |              |   | (69,232 | ) |
|                                                           |   |          |    |   |              |   |   |   |
| Property      and equipment, net                               |   |          | 31,127  |   |              |   | 32,483 |   |
|                                                           |   |          |    |   |              |   |   |   |
| Total      assets                                              |   | $             | 72,027  |   |              | $      | 77,295 |   |
|                                                           |   |          |    |   |              |   |   |   |
| See      Notes to Condensed Consolidated Financial Statements. |   |          |    |   |              |   |   |   |

----

index

KATY INDUSTRIES, INC. AND SUBSIDIARIES

|                                                             |   | April      3, |     |   | December      31, |   |
|------------------------------------------------------------------|--------|---------------|----------|--------|-------------------|--------|
|                                                             |   | 2009          |     |   | 2008              |   |
| CURRENT      LIABILITIES:                                        |   |          |     |   |              |   |
|                                                             |   |          |     |   |              |   |
| Accounts      payable                                            |   | $             | 9,531    |   |              | $      | 10,283 |   |
| Book      overdraft                                              |   |          | 1,776    |   |              |   | 2,289 |   |
| Accrued      compensation                                        |   |          | 2,949    |   |              |   | 3,015 |   |
| Accrued      expenses                                            |   |          | 13,953   |   |              |   | 14,266 |   |
| Current      maturities of long-term debt                        |   |          | 1,500    |   |              |   | 1,500 |   |
| Revolving      credit agreement                                  |   |          | 8,957    |   |              |   | 9,118 |   |
|                                                             |   |          |     |   |              |   |   |   |
| Total      current liabilities                                   |   |          | 38,666   |   |              |   | 40,471 |   |
|                                                             |   |          |     |   |              |   |   |   |
| LONG-TERM      DEBT, less current maturities                     |   |          | 6,553    |   |              |   | 6,928 |   |
|                                                             |   |          |     |   |              |   |   |   |
| OTHER      LIABILITIES                                           |   |          | 9,804    |   |              |   | 10,603 |   |
|                                                             |   |          |     |   |              |   |   |   |
| Total      liabilities                                           |   |          | 55,023   |   |              |   | 58,002 |   |
|                                                             |   |          |     |   |              |   |   |   |
| COMMITMENTS      AND CONTINGENCIES (Note 8)                      |   |          |     |   |              |   |   |   |
|                                                             |   |          |     |   |              |   |   |   |
| STOCKHOLDERS’      EQUITY                                  |   |          |     |   |              |   |   |   |
| 15%      Convertible preferred stock, $100 par value; authorized |   |          |     |   |              |   |   |   |
| 1,200,000      shares; issued and outstanding 1,131,551 shares;  |   |          |     |   |              |   |   |   |
| liquidation      value $113,155                                  |   |          | 108,256  |   |              |   | 108,256 |   |
| Common      stock, $1 par value; authorized 35,000,000 shares;   |   |          |     |   |              |   |   |   |
| issued      9,822,304 shares                                     |   |          | 9,822    |   |              |   | 9,822 |   |
| Additional      paid-in capital                                  |   |          | 26,951   |   |              |   | 27,248 |   |
| Accumulated      other comprehensive loss                        |   |          | (1,776   | )      |              |   | (1,742 | ) |
| Accumulated      deficit                                         |   |          | (104,812 | )      |              |   | (102,397 | ) |
| Treasury      stock, at cost, 1,871,128 shares                   |   |          | (21,437  | )      |              |   | (21,894 | ) |
|                                                             |   |          |     |   |              |   |   |   |
| Total      stockholders' equity                                  |   |          | 17,004   |   |              |   | 19,293 |   |
|                                                             |   |          |     |   |              |   |   |   |
| Total      liabilities and stockholders' equity                  |   | $             | 72,027   |   |              | $      | 77,295 |   |
|                                                             |   |          |     |   |              |   |   |   |
| See      Notes to Condensed Consolidated Financial Statements.   |   |          |     |   |              |   |   |   |

----

index

KATY INDUSTRIES, INC. AND SUBSIDIARIES

|                                                                            |   | April      3, |   |   | March      31, |   |
|---------------------------------------------------------------------------------|--------|---------------|--------|--------|----------------|--------|
|                                                                            |   | 2009          |   |   | 2008           |   |
|                                                                            |   |          |   |   |           |   |
| Net      sales                                                                  |   | $             | 35,092 |   |           | $      | 41,691 |   |
| Cost      of goods sold                                                         |   |          | 29,955 |   |           |   | 37,863 |   |
| Gross      profit                                                               |   |          | 5,137  |   |           |   | 3,828 |   |
| Selling,      general and administrative expenses                               |   |          | 7,164  |   |           |   | 6,737 |   |
| Severance,      restructuring and related charges                               |   |          | -      |   |           |   | 138 |   |
| Loss      on sale or disposal of assets                                         |   |          | -      |   |           |   | 533 |   |
| Operating      loss                                                             |   |          | (2,027 | )      |           |   | (3,580 | ) |
| Interest      expense                                                           |   |          | (309   | )      |           |   | (483 | ) |
| Other,      net                                                                 |   |          | (73    | )      |           |   | (14 | ) |
|                                                                            |   |          |   |   |           |   |   |   |
| Loss      from continuing operations before income tax (provision)      benefit |   |          | (2,409 | )      |           |   | (4,077 | ) |
| Income      tax (provision) benefit from continuing operations                  |   |          | (6     | )      |           |   | 352 |   |
|                                                                            |   |          |   |   |           |   |   |   |
| Loss      from continuing operations                                            |   |          | (2,415 | )      |           |   | (3,725 | ) |
| Loss      from operations of discontinued businesses (net of tax)               |   |          | -      |   |           |   | (252 | ) |
| Gain      on sale of discontinued businesses (net of tax)                       |   |          | -      |   |           |   | 543 |   |
|                                                                            |   |          |   |   |           |   |   |   |
| Net      loss                                                                   |   | $             | (2,415 | )      |           | $      | (3,434 | ) |
|                                                                            |   |          |   |   |           |   |   |   |
| Loss      per share of common stock - Basic and diluted:                        |   |          |   |   |           |   |   |   |
| Loss      from continuing operations                                            |   | $             | (0.30  | )      |           | $      | (0.47 | ) |
| Discontinued      operations                                                    |   |          | -      |   |           |   | 0.04 |   |
| Net      loss                                                                   |   | $             | (0.30  | )      |           | $      | (0.43 | ) |
|                                                                            |   |          |   |   |           |   |   |   |
| Weighted      average common shares outstanding:                                |   |          |   |   |           |   |   |   |
| Basic      and diluted                                                          |   |          | 7,951  |   |           |   | 7,951 |   |
|                                                                            |   |          |   |   |           |   |   |   |
| See      Notes to Condensed Consolidated Financial Statements.                  |   |          |   |   |           |   |   |   |

----

index

KATY INDUSTRIES, INC. AND SUBSIDIARIES

|                                                           |   | April      3, |   |   | March      31, |   |
|----------------------------------------------------------------|--------|---------------|--------|--------|----------------|--------|
|                                                           |   | 2009          |   |   | 2008           |   |
| Cash      flows from operating activities:                     |   |          |   |   |           |   |
| Net      loss                                                  |   | $             | (2,415 | )      |           | $      | (3,434 | ) |
| Income      from discontinued operations                       |   |          | -      |   |           |   | (291 | ) |
| Loss      from continuing operations                           |   |          | (2,415 | )      |           |   | (3,725 | ) |
| Depreciation      and amortization                             |   |          | 1,656  |   |           |   | 1,823 |   |
| Amortization      of debt issuance costs                       |   |          | 96     |   |           |   | 96 |   |
| Stock-based      compensation                                  |   |          | 7      |   |           |   | (127 | ) |
| Loss      on sale or disposal of assets                        |   |          | -      |   |           |   | 533 |   |
|                                                           |   |          | (656   | )      |           |   | (1,400 | ) |
| Changes      in operating assets and liabilities:              |   |          |   |   |           |   |   |   |
| Accounts      receivable                                       |   |          | (1,479 | )      |           |   | (1,833 | ) |
| Inventories                                                    |   |          | 4,032  |   |           |   | 928 |   |
| Other      assets                                              |   |          | 1,148  |   |           |   | 134 |   |
| Accounts      payable                                          |   |          | (728   | )      |           |   | (1,489 | ) |
| Accrued      expenses                                          |   |          | (214   | )      |           |   | (853 | ) |
| Other                                                          |   |          | (749   | )      |           |   | (363 | ) |
|                                                           |   |          | 2,010  |   |           |   | (3,476 | ) |
|                                                           |   |          |   |   |           |   |   |   |
| Net      cash provided by (used in) continuing operations      |   |          | 1,354  |   |           |   | (4,876 | ) |
| Net      cash used in discontinued operations                  |   |          | -      |   |           |   | (320 | ) |
| Net      cash provided by (used in) operating activities       |   |          | 1,354  |   |           |   | (5,196 | ) |
|                                                           |   |          |   |   |           |   |   |   |
| Cash      flows from investing activities:                     |   |          |   |   |           |   |   |   |
| Capital      expenditures                                      |   |          | (186   | )      |           |   | (1,037 | ) |
| Proceeds      from sale of assets                              |   |          | -      |   |           |   | 35 |   |
|                                                           |   |          |   |   |           |   |   |   |
| Net      cash used in continuing operations                    |   |          | (186   | )      |           |   | (1,002 | ) |
| Net      cash provided by discontinued operations              |   |          | -      |   |           |   | 4,424 |   |
| Net      cash (used in) provided by investing activities       |   |          | (186   | )      |           |   | 3,422 |   |
|                                                           |   |          |   |   |           |   |   |   |
| Cash      flows from financing activities:                     |   |          |   |   |           |   |   |   |
| Net      (repayments) borrowings on revolving loans            |   |          | (131   | )      |           |   | 2,940 |   |
| Decrease      in book overdraft                                |   |          | (513   | )      |           |   | (2,110 | ) |
| Repayments      of term loans                                  |   |          | (375   | )      |           |   | (399 | ) |
|                                                           |   |          |   |   |           |   |   |   |
| Net      cash (used in) provided by financing activities       |   |          | (1,019 | )      |           |   | 431 |   |
|                                                           |   |          |   |   |           |   |   |   |
| Effect      of exchange rate changes on cash                   |   |          | 23     |   |           |   | (54 | ) |
| Net      increase (decrease) in cash                           |   |          | 172    |   |           |   | (1,397 | ) |
| Cash,      beginning of period                                 |   |          | 683    |   |           |   | 2,015 |   |
| Cash,      end of period                                       |   | $             | 855    |   |           | $      | 618 |   |
|                                                           |   |          |   |   |           |   |   |   |
| See      Notes to Condensed Consolidated Financial Statements. |   |          |   |   |           |   |   |   |

----

index

KATY INDUSTRIES, INC. AND SUBSIDIARIES

|                    |   | April      3, |   |   | December      31, |   |
|-------------------------|--------|---------------|--------|--------|-------------------|--------|
|                    |   | 2009          |   |   | 2008              |   |
|                    |   |          |   |   |              |   |
| Raw      materials      |   | $             | 10,089 |   |              | $      | 12,764 |   |
| Work      in process    |   |          | 606    |   |              |   | 718 |   |
| Finished      goods     |   |          | 9,549  |   |              |   | 12,054 |   |
| Inventory      reserves |   |          | (1,344 | )      |              |   | (1,345 | ) |
| LIFO      reserve       |   |          | (3,092 | )      |              |   | (4,280 | ) |
|                    |   | $             | 15,808 |   |              | $      | 19,911 |   |
|                    |   |          |   |   |              |   |   |   |

----

index

|                                 |   | Three      Months Ended |   |
|--------------------------------------|--------|-------------------------|--------|
|                                 |   | April      3,           |   |   | March      31, |   |
|                                 |   | 2009                    |   |   | 2008 |   |
|                                 |   |                    |   |   |   |   |
| Stock      option expense            |   | $                       | 161    |   |   | $ | 37 |   |
| Stock      appreciation right income |   |                    | (154   | ) |   |   | (164 | ) |
|                                 |   | $                       | 7      |   |   | $ | (127 | ) |
|                                 |   |                    |   |   |   |   |   |   |

|                         | April      3,        |   | March      31,      |
|------------------------------|----------------------|--------|---------------------|
|                         | 2009                 |   | 2008                |
|                         |                 |   |                |
| Expected      term (years)   | 0.1      - 4.6       |   | 3.0      - 4.5      |
| Volatility                   | 127.5%      - 203.4% |   | 92.3%      - 105.1% |
| Risk-free      interest rate | 0.2%      - 1.8%     |   | 1.8%      - 2.1%    |

|                                     |   | Three      Months Ended |   |
|------------------------------------------|--------|-------------------------|--------|
|                                     |   | April      3,           |   |   | March      31, |   |
|                                     |   | 2009                    |   |   | 2008 |   |
|                                     |   |                    |   |   |   |   |
| Net      loss                            |   | $                       | (2,415 | ) |   | $ | (3,434 | ) |
| Foreign      currency translation losses |   |                    | (34    | ) |   |   | (165 | ) |
| Comprehensive      loss                  |   | $                       | (2,449 | ) |   | $ | (3,599 | ) |
|                                     |   |                    |   |   |   |   |   |   |

----

index

----

index

|                      |   | April      3, |   |   | December      31, |   |
|---------------------------|--------|---------------|--------|--------|-------------------|--------|
|                      |   | 2009          |   |   | 2008              |   |
|                      |   | Gross         |   |   | Accumulated       |   |   | Net      Carrying |   |   | Gross |   |   | Accumulated |   |   | Net      Carrying |   |
|                      |   | Amount        |   |   | Amortization      |   |   | Amount |   |   | Amount |   |   | Amortization |   |   | Amount |   |
|  Patents             |   | $             | 1,136  |   |              | $      | (854 | ) |   | $ | 282 |   |   | $ | 1,118 |   |   | $ | (832 | ) |   | $ | 286 |   |
|  Customer      lists |   |          | 10,231 |   |              |   | (8,446 | ) |   |   | 1,785 |   |   |   | 10,231 |   |   |   | (8,406 | ) |   |   | 1,825 |   |
|  Tradenames          |   |          | 5,054  |   |              |   | (2,766 | ) |   |   | 2,288 |   |   |   | 5,054 |   |   |   | (2,710 | ) |   |   | 2,344 |   |
|  Total               |   | $             | 16,421 |   |              | $      | (12,066 | ) |   | $ | 4,355 |   |   | $ | 16,403 |   |   | $ | (11,948 | ) |   | $ | 4,455 |   |
|                      |   |          |   |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| 2009      (remainder) |   | $      | 354    |   |
|-----------------------|--------|--------|--------|--------|
| 2010                  |   |   | 511    |   |
| 2011                  |   |   | 484    |   |
| 2012                  |   |   | 459    |   |
| 2013                  |   |   | 438    |   |
| Thereafter            |   |   | 2,109  |   |
|                  |   | $      | 4,355  |   |
|                  |   |   |   |   |

|                                                                             |   | April      3, |   |   | December      31, |   |
|----------------------------------------------------------------------------------|--------|---------------|--------|--------|-------------------|--------|
|                                                                             |   | 2009          |   |   | 2008              |   |
|                                                                             |   |          |   |   |              |   |
| Term      loan payable under the Bank of America Credit Agreement,      interest |   |          |   |
| based      on LIBOR and Prime Rates (3.38% - 4.25%), due through 2010            |   | $             | 8,053  |   |              | $      | 8,428 |   |
| Revolving      loans payable under the Bank of America Credit Agreement,         |   |          |   |   |
| interest      based on LIBOR and Prime Rates (3.13% - 5.00%)                     |   |          | 8,957  |   |              |   | 9,118 |   |
| Total      debt                                                                  |   |          | 17,010 |   |              |   | 17,546 |   |
| Less      revolving loans, classified as current (see below)                     |   |          | (8,957 | )      |              |   | (9,118 | ) |
| Less      current maturities                                                     |   |          | (1,500 | )      |              |   | (1,500 | ) |
| Long-term      debt                                                              |   | $             | 6,553  |   |              | $      | 6,928 |   |
|                                                                             |   |          |   |   |              |   |   |   |

| 2009      (remainder) |   | $      | 1,125  |   |
|-----------------------|--------|--------|--------|--------|
| 2010                  |   |   | 6,928  |   |
|                  |   | $      | 8,053  |   |
|                  |   |   |   |   |

----

index

----

index

|                                          |   | Pension      Benefits   |   |   | Other      Benefits     |   |
|-----------------------------------------------|--------|-------------------------|--------|--------|-------------------------|--------|
|                                          |   | Three      Months Ended |   |   | Three      Months Ended |   |
|                                          |   | April      3,           |   |   | March      31,          |   |   | April      3, |   |   | March      31, |   |
|                                          |   | 2009                    |   |   | 2008                    |   |   | 2009 |   |   | 2008 |   |
| Components      of net periodic benefit cost: |   |                    |   |   |                    |   |   |   |   |   |   |   |
| Service      cost                             |   | $                       | -      |   |                    | $      | 3 |   |   | $ | - |   |   | $ | - |   |
| Interest      cost                            |   |                    | 19     |   |                    |   | 23 |   |   |   | 36 |   |   |   | 37 |   |
| Expected      return on plan assets           |   |                    | (13    | )      |                    |   | (25 | ) |   |   | - |   |   |   | - |   |
| Amortization      of net loss                 |   |                    | 11     |   |                    |   | 11 |   |   |   | - |   |   |   | 8 |   |
| Net      periodic benefit cost                |   | $                       | 17     |   |                    | $      | 12 |   |   | $ | 36 |   |   | $ | 45 |   |
|                                          |   |                    |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |

|                                         |   |    |      |   |     |   | Weighted    |   |                |   |
|----------------------------------------------|--------|---------|-----------|--------|----------|--------|-------------|--------|---------------------|--------|
|                                         |   |    |      |   | Weighted |   | Average     |   | Aggregate           |   |
|                                         |   |    |      |   | Average  |   | Remaining   |   | Intrinsic           |   |
|                                         |   |    |      |   | Exercise |   | Contractual |   | Value               |   |
|                                         |   | Options |      |   | Price    |   | Life        |   | (in      thousands) |   |
|                                         |   |    |      |   |     |   |        |   |                |   |
| Outstanding      at December 31, 2008        |   |    | 1,624,600 |   |     | $      | 2.41        |   |                |   |   |   |
|                                         |   |    |      |   |     |   |        |   |                |   |   |   |
| Granted                                      |   |    | -         |   |     | $      | -           |   |                |   |   |   |
| Exercised                                    |   |    | -         |   |     | $      | -           |   |                |   |   |   |
| Expired                                      |   |    | (14,300   | )      |     | $      | 17.00       |   |                |   |   |   |
| Cancelled                                    |   |    | (30,000   | )      |     | $      | 3.15        |   |                |   |   |   |
|                                         |   |    |      |   |     |   |        |   |                |   |   |   |
| Outstanding      at April 3, 2009            |   |    | 1,580,300 |   |     | $      | 2.26        |   | 7.06      years     |   | $ | - |   |
|                                         |   |    |      |   |     |   |        |   |                |   |   |   |   |
| Vested      and Exercisable at April 3, 2009 |   |    | 580,300   |   |     | $      | 4.11        |   | 3.39      years     |   | $ | - |   |
|                                         |   |    |      |   |     |   |        |   |                |   |   |   |   |

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index

|                                    |   |   |    |   | Weighted   |   |
|-----------------------------------------|--------|--------|---------|--------|------------|--------|
|                                    |   |   |    |   | Average    |   |
|                                    |   | SARs   |    |   | Fair Value |   |
|                                    |   |   |    |   |       |   |
| Non-Vested      at December 31, 2008    |   |   | 6,666   |   |       | $      | 0.80 |   |
|                                    |   |   |    |   |       |   |   |   |
| Granted                                 |   |   | -       |   |       | $      | - |   |
| Vested                                  |   |   | (6,666  | )      |       | $      | 0.66 |   |
| Cancelled                               |   |   | -       |   |       | $      | - |   |
|                                    |   |   |    |   |       |   |   |   |
| Non-Vested      at April 3, 2009        |   |   | -       |   |       | $      | - |   |
|                                    |   |   |    |   |       |   |   |   |
| Total      Outstanding at April 3, 2009 |   |   | 545,717 |   |       | $      | 0.52 |   |
|                                    |   |   |    |   |       |   |   |   |

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|                                                          |   |   |   |   |                                               | Three      months ended |          |
|---------------------------------------------------------------|--------|--------|--------|--------|----------------------------------------------------|-------------------------|---------------|
|                                                          |   |   |   |   |                                               | April      3,           |          |   | March      31, |   |
|                                                          |   |   |   |   |                                               | 2009                    |          |   | 2008 |   |
| Maintenance Products Group                                    |   |   |   |   |                                               |                    |          |   |   |   |
|      Net      external sales         |   |   |   |   |                                               | $                       | 35,092        |   |   | $ | 41,691 |   |
|      Operating      income (loss)    |   |   |   |   |                                               |                    | 289           |   |   |   | (875 | ) |
|      Operating      margin (deficit) |   |   |   |   |                                               |                    | 0.8           | % |   |   | (2.1 | %) |
|           Depreciation and amortization   |   |   |   |   | 1,638                                              |                    |          |   | 1,798 |   |
|      Capital      expenditures       |   |   |   |   |                                               |                    | 186           |   |   |   | 1,037 |   |
|                                                          |   |   |   |   |                                               |                    |          |   |   |   |   |   |
| Total                                                         |   |   |   |   |                                               |                    |          |   |   |   |   |   |
| Net      external sales                                       |   |   | -      |   | Segment                                            |                    | $             | 35,092 |   |   | $ | 41,691 |   |
|                                                          |   |   |   |   | Total                                              |                    | $             | 35,092 |   |   | $ | 41,691 |   |
|                                                          |   |   |   |   |                                               |                    |          |   |   |   |   |   |   |
| Operating      income (loss)                                  |   |   | -      |   | Segment                                            |                    | $             | 289 |   |   | $ | (875 | ) |
|                                                          |   |   | -      |   | Unallocated      corporate                         |                    |          | (2,316 | ) |   |   | (2,034 | ) |
|                                                          |   |   | -      |   | Severance,      restructuring, and related charges |                    |          | - |   |   |   | (138 | ) |
|                                                          |   |   | -      |   | Loss      on sale or disposal of assets            |                    |          | - |   |   |   | (533 | ) |
|                                                          |   |   |   |   | Total                                              |                    | $             | (2,027 | ) |   | $ | (3,580 | ) |
|                                                          |   |   |   |   |                                               |                    |          |   |   |   |   |   |   |
| Depreciation      and amortization                            |   |   | -      |   | Segment                                            |                    | $             | 1,638 |   |   | $ | 1,798 |   |
|                                                          |   |   | -      |   | Unallocated      corporate                         |                    |          | 18 |   |   |   | 25 |   |
|                                                          |   |   |   |   | Total                                              |                    | $             | 1,656 |   |   | $ | 1,823 |   |
|                                                          |   |   |   |   |                                               |                    |          |   |   |   |   |   |   |
| Capital      expenditures                                     |   |   | -      |   | Segment                                            |                    | $             | 186 |   |   | $ | 1,037 |   |
|                                                          |   |   |   |   | Total                                              |                    | $             | 186 |   |   | $ | 1,037 |   |
|                                                          |   |   |   |   |                                               |                    |          |   |   |   |   |   |   |
|                                                          |   |   |   |   |                                               |                    | April      3, |   |   | December      31, |   |
|                                                          |   |   |   |   |                                               |                    | 2009          |   |   | 2008 |   |
| Total      assets                                             |   |   | -      |   | Segment                                            |                    | $             | 68,137 |   |   | $ | 73,304 |   |
|                                                          |   |   | -      |   | Other      [a]                                     |                    |          | 1,200 |   |   |   | 1,200 |   |
|                                                          |   |   | -      |   | Unallocated      corporate                         |                    |          | 2,690 |   |   |   | 2,791 |   |
|                                                          |   |   |   |   | Total                                              |                    | $             | 72,027 |   |   | $ | 77,295 |   |
|                                                          |   |   |   |   |                                               |                    |          |   |   |   |   |   |   |

| [a]  Amount      shown as “Other” represents the note receivable from the sale of the Metal      Truck Box business unit. |
|-------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                |   | Contract    |   |
|-----------------------------------------------------|--------|-------------|--------|
|                                                |   | Termination |   |
|                                                |   | Costs       |   |
| Restructuring      liabilities at December 31, 2008 |   | $           | 569    |   |
| Additions                                           |   |        | -      |   |
| Payments                                            |   |        | (27    | ) |
| Restructuring      liabilities at April 3, 2009     |   | $           | 542    |   |
|                                                |   |        |   |   |

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index

|                  |   | Maintenance |   |
|-----------------------|--------|-------------|--------|
|                  |   | Products    |   |
|                  |   | Group       |   |
| 2009      (remainder) |   |        | 161    |   |
| 2010                  |   |        | 186    |   |
| 2011                  |   |        | 195    |   |
|                  |   | $           | 542    |   |
|                  |   |        |   |   |

|                                                 |   | Three      Months Ended |   |
|------------------------------------------------------|--------|-------------------------|--------|
|                                                 |   | April      3,           |   |   | March      31, |   |
|                                                 |   | 2009                    |   |   | 2008 |   |
|                                                 |   |                    |   |   |   |   |
| Net      sales                                       |   | $                       | -      |   |   | $ | - |   |
| Pre-tax      operating loss                          |   | $                       | -      |   |   | $ | (130 | ) |
| Pre-tax      gain on sale of discontinued operations |   | $                       | -      |   |   | $ | 543 |   |
|                                                 |   |                    |   |   |   |   |   |   |

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Item2.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION ANDRESULTS OF OPERATIONS

| -   | Increases      in the cost of, or in some cases continuation of, the current price levels      of thermoplastic resins, paper board packaging, and other raw      materials. |
|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | Our      inability to reduce product costs, including manufacturing, sourcing,      freight, and other product costs. |
|---------------|-----------------------------------------------------------------------------------------------------------------------|

| -   | Our      inability to reduce administrative costs through consolidation of      functions and systems improvements. |
|---------------|---------------------------------------------------------------------------------------------------------------------|

| -   | Our      inability to protect our intellectual property rights      adequately. |
|---------------|---------------------------------------------------------------------------------|

| -   | Our      inability to reduce our raw materialscosts. |
|---------------|------------------------------------------------------|

| -   | Our      inability to expand our customer base and increase corresponding      revenues. |
|---------------|------------------------------------------------------------------------------------------|

| -   | Our      inability to achieve product price increases, especially as they relate to      potentially higher raw materialcosts. |
|---------------|--------------------------------------------------------------------------------------------------------------------------------|

| -   | Competition      from foreign competitors. |
|---------------|--------------------------------------------|

| -   | The      potential impact of higher interest rates on our debt outstanding under      the Bank of America CreditAgreement. |
|---------------|----------------------------------------------------------------------------------------------------------------------------|

| -   | Our      inability to meet covenants associated with the Bank of America Credit      Agreement. |
|---------------|-------------------------------------------------------------------------------------------------|

| -   | Our      inability to access funds under our current loan agreements given the      current instability in the creditmarkets. |
|---------------|-------------------------------------------------------------------------------------------------------------------------------|

| -   | Our      failure to identify, and promptly and effectively remediate, any material      weaknesses or significant deficiencies in our internal controls over      financial reporting. |
|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | The      potential impact of rising costs for insurance for properties and various      forms of liabilities. |
|---------------|---------------------------------------------------------------------------------------------------------------|

| -   | The      potential impact of changes in foreign currency exchange rates related to      our Canadian operations. |
|---------------|------------------------------------------------------------------------------------------------------------------|

| -   | Labor      issues, including union activities that require an increase in production      costs or lead to a strike, thus impairing production and decreasing sales,      and labor relations issues at entities involved in our supply chain,      including both suppliers and those involved in transportation and      shipping. |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | Changes      in significant laws and government regulations affecting environmental      compliance and income taxes. |
|---------------|-----------------------------------------------------------------------------------------------------------------------|

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Item4T.  CONTROLS AND PROCEDURES

----

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PART II - OTHER INFORMATION

Item1.  LEGAL PROCEEDINGS

Item1A.  RISK FACTORS

Item2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OFPROCEEDS

Item3.  DEFAULTS UPON SENIOR SECURITIES

Item4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITYHOLDERS

Item5.  OTHER INFORMATION

Item6.  EXHIBITS

| ExhibitNumber |  Exhibit Title                                                                                                                                |    |
|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------|--------------|
|          |                                                                                                                                               |         |
| 31.1          | CEO Certification pursuant to Securities Exchange Act      Rule 13a-14, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act      of 2002. |         |
| 31.2          | CFO Certification pursuant to Securities Exchange Act      Rule 13a-14, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act      of 2002. |         |
| 32.1          | CEO Certification required by 18 U.S.C. Section 1350, as      adopted pursuant to Section 906 of the Sarbanes-Oxley Act of      2002.              | #            |
| 32.2          | CFO Certification required by 18 U.S.C. Section 1350, as      adopted pursuant to Section 906 of the Sarbanes-Oxley Act of      2002.              | #            |

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Signatures

----