Kentucky roofing company accused of leaving paid jobs unfinished files for bankruptcy

LOUISVILLE, Ky. (WDRB) -- A local roofing company accused of taking money from customers but never doing any work has filed for bankruptcy.

Lexington Blue, Inc. owner and CEO Brad Pagel filed the Chapter 11 bankruptcy case Monday in the U.S. Bankruptcy Court for the Eastern District of Kentucky, two weeks after a court shut down its operations.

The company said in the filing it was overwhelmed by customer complaints and requests for refunds in 2025. It started laying off employees in February.

Bankruptcy documents detail hundreds of creditors who have unsecured claims with the company, including several lawsuits. Claim amounts vary from $400 to as much as $700,000. While a majority of claims fall between roughly $2,000 and about $8,000, some fall between $10,000 and more than $70,000. The total amount of the claims is more than $3 million, according to bankruptcy documents.

A majority of those claims come from Kentucky, specifically the Louisville and Lexington areas, with several from Ohio and at least one from southern Indiana.

Under Chapter 11 bankruptcy, the company could potentially restructure and pay creditors over time, according to the United States Courts.

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Last month, Kentucky Attorney General Russell Coleman filed a motion in Fayette Circuit Court last, which granted a temporary restraining order against Lexington Blue, ordering it to immediately cease operations and marketing.

The order will also stop the company from transferring or liquidating assets and freezes all of its finances, both corporate and personal accounts, while the attorney general's office continues to investigate.

Coleman launched an investigation into the company earlier this year. His office said Lexington Blue took nearly $5 million in payments last year for more than 300 projects, most of which were not completed.

The attorney general said more than 70 Kentucky customers have filed reports with the Office of Consumer Protection "with consistent complaints of making substantial deposits for roof construction projects that never occurred," as of early this month. His office is asking those who need assistance regarding Lexington Blue to contact his office by clicking here or calling 888-432-9257.

A bankruptcy hearing is scheduled for June 26, according to court documents.

This comes after a class-action lawsuit was filed against the company at the end of April, just days after it closed its Louisville office citing more than two years of "persistent financial strain." The suit claims there may be more than 100 people who paid Lexington Blue for work that was never done.

Previous Coverage:

Court shuts down operations at Louisville roofing company accused of leaving jobs unfinished

Class-action lawsuit filed against Louisville roofing company accused of leaving jobs unfinished

Louisville roofing company accused of leaving jobs unfinished closes

Former employee speaks out about Louisville roofing company accused of leaving jobs unfinished

Southern Indiana homeowner warns about roofing company's long-delayed storm damage repairs