Roofing Customers Hung Out To Dry As City Wide Closes

DENVER (CBS4) – After decades in business a local roofing company unexpectedly closed its doors, leaving several customers out thousands of dollars.

The victims say they’re shocked because City Wide Roofing scored top marks from consumer guides. City Wide also had an “A” rating with the Better Business Bureau. But 3 days after signing a contract with the roofing company and paying for the work, Debra Kendle learned there was trouble. A note on the company door states the company is no longer in business and is filing for bankruptcy.

“Eveything may be clean and look wonderful, but realistically you’ve got to trust your gut instinct, and my gut instinct is what saved me $10,000 in this project,” Kendle said.

Kendle wrote a $10,000 check to the roofing supply company for the materials needed. She wrote on the back of the check it was specifically for supplies for her home. Now that money is safe with the supplier.

Kendle did write a second check to City Wide for labor costs. That $4,600 is gone.
space Roofing Customers Hung Out To Dry As City Wide Closes

Buzz Frankel, City Wide’s former general manager, told CBS4 in addition to writing a separate check to the supplier, be sure to set payment terms. He suggested not paying labor costs until the work is done.

“Great companies and good people hit walls like this,” Frankel said.

Frankel worked as City Wide Roofing’s general manager for 2 years. He said late insurance checks created a cash flow problem. City Wide also had a loan with Solera National Bank. Court papers show the bank claims City Wide misrepresented itself when the loan was executed. The bank now demands its money.

“The line of credit being called due early actually created this crisis,” Frankel said.


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