Bogged down with depleting revenue and four pending lawsuits, Illinois roofing contractor Applaudable Roofing & Construction filed a voluntary petition for Chapter 7 bankruptcy on January 8, 2021, according to the US Bankruptcy Court for the Northern District of Illinois.
The Elgin, Illinois-based roofing contractor claims in their bankruptcy petition that they suffered a 64% decrease in gross revenue between 2019 and 2020.
In 2019, Applaudable Roofing & Construction reported $1,166,357 in gross revenue, followed by $423,834 in 2020.
Dating back to 2016, the roofing contractor has been labeled the defendant party in at least five lawsuits, one of which was closed in 2018 when a judgement verdict worth nearly $30,000 was awarded to the plaintiff party during a contract dispute.
According to the bankruptcy petition, the roofing contractor lists the following:
- $0–$50,000 in estimated liabilities
- $5,000 in assets
- $900 in checking
- $1,400 in accounts receivable
Applaudable Roofing & Construction bankruptcy petition lists seven nonpriority unsecured claims, all of which include an “unknown” claim amount. The roofing contractor lists no priority unsecured claims and no secured claims in the bankruptcy petition.
The roofing contractor was incorporated in February of 2011, and according to the Illinois Secretary of State, the entity’s current business status is listed as “active.”
Chapter 7 bankruptcy requires a debtor’s assets to undergo the process of liquidation, which is the sale of the nonexempt property. Liquidation is administered by a bankruptcy court-appointed trustee. Upon liquidation, the debtor’s remaining assets are distributed to pay back creditors.
Typically, secured claims are paid out first during a Chapter 7 bankruptcy case. Creditors with priority unsecured claims are next to be paid out, following creditors with nonpriority unsecured claims.
Four pending, one closed lawsuit involving Applaudable Roofing & Construction in Illinois
The now-bankrupt Applaudable Roofing & Construction is currently faced with four pending and disputed lawsuit filings taking place within two separate county courts in Illinois.
In the Circuit Court of Kane County, plaintiff party Robert Cooke filed a contract-related lawsuit for monetary damages ranging from $15,000–$50,000 against Applaudable Roofing & Construction on January 18, 2019. According to the Kane County clerk’s office, the case is slated to be addressed again on January 12, 2021.
The remaining three pending contract lawsuits were all heard with the Circuit Court of Cook County between December of 2016 and August of 2020.
A closed contract dispute involving the bankrupt roofing contractor was also heard with the Circuit Court of Kane County in 2018. Plaintiff ABC Supply Co, Inc. was awarded a judgment verdict of $28,149.75 on January 9, 2019.
A client of Applaudable Roofing & Construction and insurer Perkin Insurance Company are also tangled in ongoing contract-related lawsuit filings, while condominium complex Carriage Way of Burr Ridge has filed a lawsuit alleging consumer fraud.