28-04-2025
Lexington roofer, under investigation by Kentucky Attorney General, shuts down
A multistate roofing company with headquarters in Lexington that's under investigation by the Kentucky Attorney General's office, abruptly went out of business over the weekend, leaving customers high but not necessarily dry.
Lexington Blue, with offices in Lexington, Louisville and Cincinnati, sent customers an email saying it was closing its doors as of April 26 and has handed over all existing contracts to another company, Skyline GC.
'We have formally transferred our backlog of outstanding projects and warranties to Skyline GC LLC, a local roofing company that shares Lexington Blue's values of excellence, integrity, and community care,' according to the email to customers. 'If you have a pending project or warranty, you can expect direct communication from Skyline GC within the next 30 days.'
Lexington Blue said it has defaulted 'on all credit lines and loans.'
The news is not settling well with some homeowners.
Tim Buckingham, contacted the Herald-Leader to say he had filed an insurance claim in February 2024 with Lexington Blue and paid 'a significant amount of money ... and still no roof,' the Lexington homeowner emailed.
He hadn't heard from the company since September until the going-out-of-business email arrived.
An office manager in Louisville told WDRB-TV, which has reported on issues involving Lexington Blue in Jefferson County, she estimates more than 80 customers in Louisville are waiting on roofing work there.
No phone number or contact information was immediately available for Skyline GC. The Kentucky Secretary of State's office lists the organizer as Cesar Gutierrez Arreaga and says the office is on Chantilly Street in Lexington.
Lexington Blue was founded in 2015 by Bradly Pagel Jr. of Lexington. A Herald-Leader call on April 28 to Lexington Blue's office ended in a voicemail box that is full.
Lexington Blue is under investigation by the Kentucky Attorney General's office and is facing multiple lawsuits in Fayette Circuit Court.
Kentucky Attorney General Russell Coleman's office served Lexington Blue with a subpoena and Civil Investigative Demand in March. He demanded business records for Lexington Blue Lexington, Lexington Blue Cincinnati and Lexington Blue University from Jan. 1, 2023, to March 1, 2025.
The Attorney General's office asked for all contracts, payments, communications, work documents, building permits, licenses and list of sub-contractors as well as bank account information, refund information and marketing.
Coleman's office requested the documents be turned over within 20 days, by March 25. The business attempted to fend off this request by asking Franklin Circuit Court Judge Philip Shepherd to dismiss the demand, which it called overly broad in the court filing. Or, failing that, to ask Coleman's office to establish reasonable justification for the demand, modify it and/or extend the return date.
No ruling has been made in that case.
Coleman's office did not immediately respond to a request for comment Monday.
But Coleman's demand letter requests names of customers Lexington Blue or affiliated entities entered into an agreement with for home construction, repair or reconstruction services over the past two years.
Coleman's office asked the company to identified any contracts where Lexington Blue 'failed to perform its obligations within the initial time period called for the Agreement; and/or Lexington Blue ... failed to completely perform its obligations' and why.
The letter also asks if Lexington Blue 'obtained building permits and/or licenses from local municipalities and counties before commencing work.'
According to the Better Business Bureau in Lexington, the company had a pattern of complaints involving communication issues, services delays and refund issues.
Lexington Blue was not accredited by the BBB and various review websites offer harsh critiques.
There are several cases pending in Fayette Circuit Court, including two that appear to involve roofing repairs that were not made or completed and three involving suppliers.
One homeowner, James Greathouse on Gulfstream Drive, sued in February 2024, alleging that Lexington Blue agreed to fix the roof of his home and shed, damaged in a March 2023 wind and hailstorm. Despite paying more than half of the nearly $7,500 cost up front, Lexington Blue never started the work, according to the lawsuit.
Another couple, Stuart and Brenda Goldsborough on Old Richmond Road, hired Lexington Blue in October 2024 to replace their roof, which had a leak and was under temporary tarps at the time, and paid a deposit of more than $5,500.
After Lexington Blue failed to do any work, the homeowners had to cancel and find another contractor before winter, according to a lawsuit filed in March 2025.
Meanwhile, Lexington Blue had contacted their insurance company and not only asked for the full cost of the new roof up front but had told the insurer the work had been completed by Lexington Blue, when it had not, according to the complaint.
One supplier from Florida, Gulfside Supply, claims Lexington Blue owes more than $70,000 on a line of credit for roofing and lumber provided. Another supplier, Corken Steel Products of Florence, alleges Lexington Blue and Pagel owe more than $49,000 as of January 2025 for goods.
Another Fayette Circuit Court lawsuit filed against Lexington Blue in October 2024 alleges they had not paid their computer and IT services provided and owed almost $7,000.
Another case involves a van that Lexington Blue sold that apparently did not have a clear title because there was a lien on it.
