Mike Holmes-endorsed reno company says it's closing down, blames News investigation | News
A home renovation company endorsed by celebrity contractor Mike Holmes said Tuesday it is closing down, blaming News coverage.
A home renovation company endorsed by celebrity contractor Mike Holmes said Tuesday it is closing down, blaming CBC News coverage.
"Due to actions taken by CBC, our company's reputation has been severely impacted, making it financially impossible for us to continue operations," wrote Ivan Atanasov, CEO of Ontario-based AGM Renovations, in a letter to the company's tradespeople, vendors and contractors.
"Despite our relentless efforts to recover, the extent of the damage has left us with no viable path forward," he wrote. "AGM… will be permanently closed."
CBC News reported two stories on AGM this month: the first by Marketplace, about celebrity-backed home projects, and the second, an investigation focused on electrical problems.
Each featured AGM customers who complained of shoddy work, and say Holmes' endorsement influenced their decision to hire AGM — a decision they now regret.
In the second report, two customers complained that AGM did "hazardous" electrical work. In one case, contrary to provincial law, the company used an unlicensed electrician, according to documentation seen by CBC. AGM denied any wrongdoing.
The report also revealed that AGM is under investigation by Ontario's Electrical Safety Authority (ESA).
And it noted that, while Holmes was endorsing AGM, he was also getting paid by the ESA to appear in videos about electrical safety.
Mike Holmes's company, The Holmes Group, did not reply to repeated requests for comment about AGM and the ESA investigation. But after CBC reached out, an AGM webpage embedded on Holmes's website disappeared. AGM video ads featuring Holmes were also pulled from the internet.
Following CBC's report on AGM's electrical issues, Holmes posted a statement on Facebook about the importance of electrical safety, stating that it's "essential and is an immovable red line for my team and associations."
That post appeared to suggest he had suspended ties with AGM due to the ESA investigation.
Atanasov's letter didn't address whether the sudden disappearance of company ads featuring Holmes affected its bottom line.
Atanasov ended his letter on a positive note, stating that he takes "great pride in the work we have accomplished together and in the thousands of homeowners we have helped."
Atanasov sent this letter to its tradespeople, vendors and contractors. (AGM Renovations)Homeowner Peter Mikhail, who was featured in the CBC News story, said he doesn't feel AGM should take pride in the work done at his home in Caledon, Ont.
Mikhail hired the company to do a major kitchen renovation in May 2022. His complaints include damaged flooring, incorrectly installed fixtures and unsafe electrical work.
Mikhail says he's relieved AGM is no longer in business, but worries about customers who are mid-renovation, and those who were dissatisfied with their reno and are trying to get compensation.
Peter Mikhail of Caledon, Ont., hired AGM to renovate his kitchen. He says the job was fraught with problems including electrical defects. (Rob Krbavac/CBC)Several unhappy customers, including Mikhail, have filed lawsuits targeting AGM.
Mikhail estimates he will have to pay thousands of dollars to fix the work done in his home. He figures he will get no money from AGM now, and says the renovation industry needs to be regulated to protect homeowners.
"[It's] a weird kind of feeling right now, because I feel like I've won something, and yet I haven't," he said. "I can't imagine how many people that are now in financial distress and have no recourse… What's going to happen to these people?"
Eric Cartier of Barrie, Ont., who was also featured in the CBC story, is suing AGM, too. He hired the company in August 2023 to renovate three bathrooms and one powder room in his Barrie home. Cartier's complaints include peeling paint, improperly installed fixtures, multiple leaks and, like Mikhail, unsafe electrical work.
Two of Cartier's bathrooms never got past the demolition stage and remain unfinished. He too says he's relieved AGM is no longer taking new clients.
"We are very happy we are protecting others," he said in a written message to CBC News. "That has been one of our reasons for keeping the fight. Half the battle feels won."
AGM says it can't comment on cases before the courts and denies any wrongdoing.
Mikhail suggests that Holmes, whose motto is "make it right," could assist AGM customers who need help.
WATCH |Marketplaceexamines the celebrity sell on home projects:Celebrity-backed home projects leave a trail of unhappy customers
15 days agoDuration 21:13
Celebrities including Mike Holmes and former CFL player Graeme Bell make the pitch for renovations and custom home builds done right, but a long list of customers with home build and reno nightmares shows that even though these celebs make the pitch to trust them, there is little accountability when things go wrong.
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