A home improvement business endorsed by renowned TV contractor Mike Holmes announced its closure on Friday, attributing it to negative coverage by CBC News. Ivan Atanasov, the CEO of AGM Renovations based in Ontario, conveyed in a letter to the company’s associates that the firm’s reputation had been severely damaged by CBC’s actions, rendering it financially unviable to continue operations. Despite extensive efforts to recover from the impact, the damage was irreparable, leading to the permanent shutdown of AGM.
CBC News published two articles on AGM in recent times. The first, by Marketplace, scrutinized celebrity-supported home projects, while the second delved into electrical issues within AGM, including complaints from customers about subpar work quality and the influence of Holmes’ endorsement on their decision to engage AGM for renovations.
The investigation revealed instances of unsafe electrical practices by AGM, such as employing unlicensed electricians, contrary to provincial regulations. AGM refuted any allegations of misconduct but is currently under scrutiny by Ontario’s Electrical Safety Authority (ESA). It was also disclosed that Holmes, while endorsing AGM, was concurrently remunerated by the ESA for participating in electrical safety videos.
Following CBC’s coverage of AGM’s electrical concerns, Holmes posted a statement emphasizing the significance of electrical safety on social media, which hinted at a potential suspension of ties with AGM amid the ESA investigation. Atanasov’s letter did not touch upon the impact of the sudden removal of AGM ads featuring Holmes on the company’s financial performance.
Despite Atanasov expressing pride in their collective accomplishments and assistance to numerous homeowners, individuals like Peter Mikhail, who engaged AGM for a kitchen renovation, expressed dissatisfaction with the work quality and unsafe electrical installations. Mikhail, along with other aggrieved customers, has resorted to legal action against AGM to rectify the deficiencies in their renovations.
While some customers like Mikhail and Eric Cartier feel relieved that AGM is no longer operational, they remain concerned about ongoing renovations and compensation for dissatisfied clients. Mikhail stressed the necessity for regulatory measures in the renovation industry to safeguard homeowners and suggested that Holmes, known for his “make it right” philosophy, could assist affected AGM customers in need.
AGM declined to comment on ongoing legal proceedings and refuted any accusations of malpractice. The company insists it acted in good faith during its operations and regrets any discontent among its clientele.
