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Holtzman companies file liquidation bankruptcy
Four Holtzman LLCs have filed Chapter 7 bankruptcy, abandoning client projects across the area. FOX 10's Nicole Krasean reports.
MESA, Ariz. - A Mesa woman is living without a kitchen and out more than $12,000 after hiring an Arizona construction company accused of taking money from clients and leaving them with unfinished projects.
That company, Holtzman Remodeling LLC, officially filed for bankruptcy Friday, Oct. 2, and the situation has left homeowners stranded.
Local perspective:
In late June, Shirley Boyken discovered several water leaks in her kitchen, requiring a demolition and remodeling project. She chose Holtzman Remodeling, but now, that company, along with three other Holtzman LLCs, have filed for Chapter 7 bankruptcy, leaving Boyken and countless other clients stranded.
"I've been eating out a lot," Boyken said.
Takeout orders are about all Boyken eats these days, since this is what her kitchen looks like. The headache started when Boyken found a leak in one of her cupboards this summer.
After paying $12,000 for a kitchen remodel, Mesa woman, Shirley Boyken, faces an unfinished home as Holtzman companies file for liquidation bankruptcy.
"Then I opened the adjoining door and water sprayed me in the face and I thought this is very serious here," Boyken said.
By August, Boyken was ready to hire a company for the demo and remodel. She particularly wanted someone who would assemble a set of cabinets she had fallen in love with.
"They're glorious," Boyken said. "And I had decided that whoever I interviewed to do the work, well, actually, I had a little prayer before I went into it and I said, 'You're gonna have to help me get this. I want them so bad.'"
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Customers report more abandoned Holtzman construction jobs
Dozens of customers and subcontractors report unfinished work and missing funds from Holtzman Construction. One customer paid over $400,000 for a build that sits incomplete. FOX 10's Nicole Krasean reports.
'No word, no phone call':
Boyken says Holtzman representatives told her they would take care of the cabinets and the rest of the kitchen. But one day in mid-September, crews did not show up for scheduled work.
"The next day, still nobody. And no word, no phone call, no nothing. Then I tried the website. Whoops. It was gone, it was gone and when that happened I knew we were in trouble," Boyken said.
Boyken is out roughly $12,000 on the project. She says she filed a complaint with the Arizona Registrar of Contractors.
After paying $12,000 for a kitchen remodel, Mesa woman, Shirley Boyken, faces an unfinished home as Holtzman companies file for liquidation bankruptcy.
Big picture view:
On Friday, four different Holtzman companies filed for Chapter 7 bankruptcy, often called liquidation bankruptcy. Holtzman Construction and Holtzman Remodeling LLCs have also voluntarily canceled their licenses with the ROC.
FOX 10 asked ROC Director Tom Cole this week what a bankruptcy filing means for any agency investigation into a particular company.
"There's nothing that precludes us from continuing with our investigative process when a bankruptcy is filed, it does not stop our actions. And it would not even stop a homeowner from applying for an award from the Residential Contractors' Recovery Fund," Cole said.
But as FOX 10 has reported, that fund has a cap of $200,000 per contractor. Between the three customers interviewed this week, more than $800,000 has been paid for abandoned projects.
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Phoenix homeowners lose thousands to inactive contractor
Small business owners and homeowners face massive financial losses after an Arizona general contractor halts work and cites bankruptcy. FOX 10 Investigator Nicole Krasean hears from both subcontractors and customers, who are now out thousands.
What's next:
Boyken did receive a call from Shine Electric this week offering to complete her electrical work for free.
"When I got the call from them, that was … wow. I thought, 'Well Lord, you're taking care of it,'" Boyken said.
As for the rest of the work, including her dream cabinets, Boyken says she is looking into her options but feels rather lost.
"I'm not familiar with all the people around, you know, I have my little neighborhood here and that's about it. It's just overwhelming, what next?" Boyken said.
Neither the ROC nor the Attorney General's Office have commented on whether they are officially investigating any Holtzman company.
The Source: Information in this report was gathered from Shirley Boyken, Holtzman Remodeling customer; Tom Cole, director of the Arizona Registrar of Contractors; Shine Electric; the Arizona Attorney General's Office; and past FOX 10 investigative reports.