A house renovation firm endorsed by celeb contractor Mike Holmes stated Tuesday it’s closing down, blaming CBC Information protection.
“Attributable to actions taken by CBC, our firm’s popularity has been severely impacted, making it financially not possible for us to proceed operations,” wrote Ivan Atanasov, CEO of Ontario-based AGM Renovations, in a letter to the corporate’s tradespeople, distributors and contractors.
“Regardless of our relentless efforts to get better, the extent of the injury has left us with no viable path ahead,” he wrote. “AGM… might be completely closed.”
CBC Information reported two tales on AGM this month: the primary by Marketplace, about celebrity-backed house initiatives, and the second, an investigation focused on electrical problems.
Every featured AGM prospects who complained of shoddy work, and say Holmes’ endorsement influenced their resolution to rent AGM — a choice they now remorse.
Within the second report, two prospects complained that AGM did “hazardous” electrical work. In a single case, opposite to provincial legislation, the corporate used an unlicensed electrician, based on documentation seen by CBC. AGM denied any wrongdoing.
WATCH | AGM adverts that includes Holmes disappear:
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The report additionally revealed that AGM is beneath investigation by Ontario’s Electrical Security Authority (ESA).
And it famous that, whereas Holmes was endorsing AGM, he was additionally getting paid by the ESA to seem in movies about electrical security.
Mike Holmes’ firm, The Holmes Group, didn’t reply to repeated requests for remark about AGM and the ESA investigation. However after CBC reached out, an AGM webpage embedded on Holmes’s web site disappeared. AGM video adverts that includes Holmes have been additionally pulled from the web.
‘Immovable crimson line’
Following CBC’s report on AGM’s electrical points, Holmes posted an announcement on Fb concerning the significance {of electrical} security, stating that it is “important and is an immovable crimson line for my staff and associations.”
That put up appeared to counsel he had suspended ties with AGM because of the ESA investigation.
Atanasov’s letter did not tackle whether or not the sudden disappearance of firm adverts that includes Holmes affected its backside line.
Atanasov ended his letter on a optimistic be aware, stating that he takes “nice satisfaction within the work we now have completed collectively and within the 1000’s of householders we now have helped.”
House owner Peter Mikhail, who was featured within the CBC Information story, stated he would not really feel AGM ought to take satisfaction within the work accomplished at his house in Caledon, Ont.
Mikhail employed the corporate to do a significant kitchen renovation in Might 2022. His complaints embrace broken flooring, incorrectly put in fixtures and unsafe electrical work.
Mikhail says he is relieved AGM is not in enterprise, however worries about prospects who’re mid-renovation, and people who have been dissatisfied with their reno and are attempting to get compensation.
A number of sad prospects, together with Mikhail, have filed lawsuits concentrating on AGM.
Mikhail estimates he must pay 1000’s of {dollars} to repair the work accomplished in his house. He figures he’ll get no cash from AGM now, and says the renovation trade must be regulated to guard owners.
“[It’s] a bizarre sort of feeling proper now, as a result of I really feel like I’ve received one thing, and but I have not,” he stated. “I am unable to think about how many individuals that at the moment are in monetary misery and don’t have any recourse… What is going on to occur to those individuals?”
AGM says it could’t touch upon instances earlier than the courts and, in its assertion of defence for every case, denies any wrongdoing.
Mikhail suggests that Holmes, whose motto is “make it proper,” might help AGM prospects who need assistance.
Celebrities together with Mike Holmes and former CFL participant Graeme Bell make the pitch for renovations and customized house builds accomplished proper, however an extended checklist of consumers with house construct and reno nightmares exhibits that though these celebs make the pitch to belief them, there may be little accountability when issues go incorrect.
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