Watershed Holdings, LLC filed for Chapter 11 bankruptcy on February 3, 2021. The filing comes on the heels of dozens of lawsuits and liens filed against Watershed and its executive vice president, Marc Wilson.
According to the petition, the Kirkland, Washington-based general contractor’s liabilities total $7,076,083.38. Watershed and Wilson have faced multiple lawsuits — as well as a plethora of angry online reviews from disgruntled subcontractors.
Watershed Holdings’ Contractor Payment Profile displays a current subcontractor rating of 1.9 out of 5 stars — with 76% of the 17 subcontractors who rated Watershed giving them a 1-star rating.
“Stay away from Marc,” says one reviewer. “Do not do any business with watershed holdings, you WILL regret it.”
“Did not pay last installment, though legally required to,” says another contractor.
“BEWARE!! Marc Wilson DOES NOT PAY HIS VENDORS,” another reviewer says. “Cannot keep his word, does not show up to meetings. Lies to his tenants as well. If you’re reading this, it’s probably already too late! DON’T DO WORK FOR THIS GUY.”
The latest review left for Watershed Holdings was from late 2020, and reads “Screwed us out of 17k. We paid our crews and material; they paid nothing.”
A paper trail of unpaid debts
From tile manufacturers to HVAC installation experts, vendors across the Pacific Northwest have taken their complaints with Watershed to court.
The Washington State Department of Labor and Industries lists eight active mechanics liens against Watershed.
A mechanics lien is a legal document contractors and subcontractors file for unpaid labor or supplies on a property. The lien gives the claimant a security interest in the property, as the lien attaches to the property and can impede the owner from selling or refinancing until the claimant receives payment.
Claimants include Foundation Specialists, Alexander’s Heating & Air Conditioning, and Northwest New Construction & Excavating. Complaint amounts ranged from $14,893.12 (DMS Supply) to $135,976.12 (Northwest).
According to the lien documents, Watershed has gone months — sometimes even years — without paying their contractors. Liens filed by HVAC contractor Forbes Mechanical list debts for services provided as far back as February 2018.
The same handful of addresses reappear throughout different liens, suggesting Watershed refused to pay or didn’t have the money to pay for entire projects.
Eastlake Concrete, Cadman Inc., and Ralph’s Concrete filed liens against Watershed for a property at 2470 E. Helen St., Seattle, WA 98112.
One of the six properties Alexander’s Heating & Air Conditioning lists in its May 1, 2020 lien also appears in the lien filed by Landmark Building Products Inc. and All Faze Construction LLC: 1523 17 Avenue S, Seattle, WA 98144.
At least one financial institution has also taken legal action against Watershed: The contractor received a foreclosure notice from Civic Financial Services LLC in April 2020. According to the notice, Watershed failed to make any payments on the $1.28 million loan it took from the lender to buy two properties in Kirkland.
Watershed’s bankruptcy petition lists 20 claims against the company from creditors ranging from the IRS, WaFd Bank, and King County Treasury Operations, to Seattle Performance Remodelers and Versatile Drilling Contractors.
Additionally, the bankruptcy petition shows other legal actions organizations have taken against Watershed, including a tax warrant from the Washington Department of Revenue.