News Summary
Lexington Blue, a roofing company in Lexington, KY, has filed for Chapter 11 bankruptcy while facing scrutiny from the Attorney General for allegedly taking payments for unfinished projects. The company’s owner is under fire as it owes over $3.2 million to customers and employees, with more than 300 projects reported incomplete. A temporary court order has frozen the owner’s assets amid growing customer dissatisfaction and claims of workplace discrimination. The upcoming bankruptcy hearing on June 26 may reveal further developments as investigations hint at potential fraudulent practices.
Lexington, KY – Lexington Blue, a local roofing company, has officially filed for Chapter 11 bankruptcy while facing a serious investigation led by the Kentucky Attorney General’s Office. The company’s owner, Brad Pagel, is under scrutiny for allegedly accepting payments for roofing projects that were never completed, leaving numerous customers dissatisfied and financially burdened.
The bankruptcy filing indicates that Lexington Blue owes over $3.2 million to various former customers, employees, as well as state and federal regulatory bodies. Additionally, the Attorney General’s investigation has revealed that the company accumulated nearly $5 million in payments for more than 300 roofing projects, most of which remain unfinished and unaddressed.
A temporary court order has been issued to freeze the assets of Brad Pagel and to halt all business operations of Lexington Blue, which has been inundated with complaints. Over 70 customers have reported the company’s failure to deliver on paid work, contributing to a growing sense of discontent with the company.
Former employee Dacoda Mays has detailed severe financial consequences arising from the company’s operational issues, highlighting that employee paychecks regularly bounced. This instability reportedly led Mays to lose vehicles and nearly face foreclosure on his home. In yet another instance of customer grievance, Lindsay Truong stated she is out more than $10,000 due to payments made for a roof replacement that never took place. To foster support and solidarity among affected customers, Truong initiated a private Facebook group.
Bankruptcy documents reveal that Lexington Blue is now facing nearly 300 creditors, with claims not only from disgruntled customers but substantial claims for unpaid wages and damages due to allegations of workplace discrimination. Among these creditors, a class of at least 28 former employees has filed claims for $700,000 in punitive damages due to a hostile work environment, while the Kentucky Education and Labor Cabinet has a pending claim for $700,000 related to workers’ compensation claims. The IRS and the Kentucky Department of Revenue are also listed as creditors in the bankruptcy proceedings.
Despite reporting sales of $6.3 million in 2023, Lexington Blue incurred a business loss of $129,611 after necessary deductions. Brad Pagel has cited the company’s dependence on high-interest loans as a significant factor contributing to its financial troubles, stating that this reliance initiated a damaging cycle of financial strain. He also acknowledged severe operational failures, including account freezes and job delays that stemmed from the company’s inability to pay its vendors.
In a desperate attempt to stabilize finances, Pagel sold his home earlier in 2025 for over $1 million. He expressed that he has not been involved in the company’s day-to-day operations for some time, attributing the firm’s decline to various mismanagement issues that persisted over an extended period.
An upcoming bankruptcy hearing is scheduled for June 26, 2025, where further details may emerge regarding the future of Lexington Blue and the ongoing investigation. The Attorney General’s office has cautioned that the operational model of the company bears alarming similarities to a Ponzi scheme, suggesting the potential for fraudulent intentions behind the actions of its owner.
The unfolding situation with Lexington Blue illustrates the significant ramifications of business mismanagement, particularly within a service industry that impacts the lives and finances of local customers and employees. As investigations continue, many victims remain hopeful for justice and restitution.
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Additional Resources
- Lex18: Lexington Blue Files for Chapter 11 Bankruptcy
- Kentucky.com: Lexington Blue Roofing Company Bankruptcy
- Fox56 News: Lexington Blue Roofing Files Bankruptcy
- WKYT: Lexington Blue Customers Organize for Answers
- WDRB: Kentucky Roofing Company Files for Bankruptcy
- Wikipedia: Bankruptcy
- Google Search: Lexington Blue Roofing
- Google Scholar: Lexington Blue Bankruptcy
- Encyclopedia Britannica: Bankruptcy
- Google News: Lexington Blue
