Louisville, Ky. (WDRB) – A local roofing company that is accused of taking money from customers but never doing work has filed for bankruptcy.
The owner and CEO of Lexington Blue, Inc., Brad Pagel, submitted the bankruptcy case in Chapter 11 at the US insolvency court for the eastern district of Kentucky on Monday after a court closed its business.
The company said in the submission that it was overwhelmed by customer complaints and reimbursement inquiries in 2025. It began to dismiss the employees in February.
Insolvency documents describe hundreds of creditors who complain to the company unsecured claims, including several complaints. The application of the application vary between 400 and up to 700,000 US dollars. While the majority of the claims between around 2,000 and around 8,000 US dollars are between 10,000 and more than $ 70,000. According to insolvency documents, the total amount of claims is more than 3 million dollars.
Much of these claims come from Kentucky, especially from the areas of Louisville and Lexington, with several from Ohio and at least one from South Indiana.
According to the United States, the company could possibly restructure and pay the company according to the United States, according to the United States.
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Last month, the Attorney General of Kentucky Russell Coleman recently submitted an application to Fayette Circuit Court, who provided a temporary injunction against Lexington Blue and immediately complied with operations and marketing.
The company also prevents the company from transferring or liquidating assets and freezing all of its finances for both corporate and personal accounts, while the general prosecutor's office continues to be examined.
Coleman initiated an investigation by the company at the beginning of this year. His office said that Lexington Blue had made payments of almost 5 million US dollars for more than 300 projects last year, most of which were not completed.
The Attorney General said that more than 70 customers in Kentucky had submitted reports on the office of consumer protection, “with consistent complaints about the submission of considerable deposits for roof construction projects that have never occurred” at the beginning of this month. His office asks those who need help in relation to Lexington Blue to turn his office Click here Or call 888-432-9257.
According to court documents, insolvency hearing is planned for June 26.
This happens after a class action was submitted against the company at the end of April, just a few days after it closed his office in Louisville, “persistent financial burdens” quotes for more than two years. The lawsuit claims that there may be more than 100 people who paid Lexington Blue for the work that have never been done.
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