As this downturn/recession/depression (pick
whichever term you like) wears on, we are hearing some ugly stories of fabrication
shops closing down, but I recently heard one of the worst ones yet. The
fabrication shop at issue is Rock Tops, which is based in Michigan and operated
in several states, and they apparently ceased fabrication in late December of
2008.
Going beyond the stories I heard from several
employees of the firm, who stated that they were let go without receiving their
final paychecks (something a conscientious owner would never let happen), this
closing made for disturbing headlines in the mainstream
media.
According to an issue of The Macomb Daily of Michigan
last month, Rock Tops “fleeced” more than 100 customers out of hundreds of
thousands of dollars by collecting deposits and then disappearing. The article
headline, simple and to the point, sums up the story: “Customers never got
granite; company vanished.”
The article states Rock Tops may
have bilked customers out of as much as $850,000. “Customers told The Macomb
Daily they paid anywhere from $2,500 to $5,000 to have Rock Tops make and
install their granite or marble countertops,” reads the article. “But the
company suddenly and without warning closed its doors on December 19 and the
customers, many from out of state, were left high and
dry.”
Without reciting the entire ugly article, other
low-lights of the piece include a potential criminal investigation being cited
by the Macomb County Sheriff and quotes from defrauded customers in both
Michigan and Ohio, who recount their financial losses and personal
disappointment over the situation.
At a time when it is hard
enough to convince people to buy granite kitchen countertops in the first
place, is this something we really need to hear? Moreover, with the ongoing
challenge of competing with Big Boxes and all the other mega-shops, this makes
matters even more difficult. As one fabricator assessed the situation, stories
like this “muddy the waters” for every decent, hard-working shop in the
field.
Since I don’t have ready access to The Macomb Daily
at my local newsstand, I read the article online by visitingwww.macombdaily.comand doing a quick search. And like most editions of online
newspapers, The Macomb Daily gives readers a chance to comment on each story.
Responses to this particular article ranged from resignation (remember, this is
in Michigan,
where it seems there is no good economic news anymore) to outright fury. Some
Rock Tops customers stated that they not only lost their deposit, but even
their sink and faucets. Others, who hadn’t upgraded their kitchen yet, said
that they would now be wary about working with any fabrication shop that asks
for a deposit. No deposit? How’s that going to work for a small shop, or even a
larger one?
One of the worst comments reads as follows:
“I’ve been saying for years that the granite business is one of the most
crooked industries around. Lots of profit, no warranty, no quality standards.
The huge profits and demand for granite countertops have always attracted the
wrong kind of people.” And remember, since someone took the time to write these
thoughts down, a certain portion of the population will believe
them.
The story was also picked up by Detroit’s NBC
affiliate, WDIV, and it can be found atwww.clickon
detroit.com/news/18403357/detail.html- complete with a link to the video
report that aired on television. This piece is similar to the newspaper
article, but also includes video images of the closed-down, darkened shop and
an interview in the living room of a homeowner who very calmly and gracefully explained
how she was ripped off of thousands of dollars because she decided to buy
granite countertops.
Vendors out
millions
Of course, I haven’t even touched on Rock Tops’
many unfortunate vendors - the suppliers of stone, machinery and tooling - who
now have to deal with the aftermath of this situation, and who will be
scrambling to recoup lost dollars and lost materials. For these vendors, who
are already facing the same obstacles as the rest of the industry, situations
like this are truly a nightmare.
In a follow-up story, The
Macomb Daily reported that Rock Tops has been sued by at least one vendor for
nonpayment of bills of nearly $900,000. The lawsuit, filed last month by Dwyer
Marble and Stone of Farmington Hills, MI, claims that Rock Tops never paid for
$890,395 in granite and marble. As of press time for this issue of Stone World,
a hearing was adjourned to January 26.
Several other
suppliers of natural stone, equipment and tooling also informally told Stone
World of six-figure debts owed to them by Rock Tops. While portions of some of
these debts may be repaid through accounts payable insurance, it is certain
that a portion of the money owed by Rock Tops will never be seen
again.
A very public
disgrace
In the wake of this ongoing situation - which
continues to be covered in multiple mainstream media outlets - many reputable
stone fabricators out there are finding themselves having to explain Rock Tops’
transgressions as if all granite shops should share in the blame. (Blanket
statements like “The granite business is one of the most crooked industries
around” tend to be quite damaging, as one might expect.) It is a sad state of
affairs, but unfortunately, a stone fabrication shop will not make headlines by
doing quality work and being fair to their customers, employees and
vendors.
A few years back, I would get a kick out of hearing
about the stone industry in mainstream media. Usually, it was some sort of
piece on “How stone will beautify your home.” Sometimes, they even called Stone
World Magazine for a quote or some statistics. But recently, all of that has
changed. For the past six months, the stone industry has received more than its
share of negative attention in the mainstream media. First, it was largely
centered on whether or not radon exposure from granite would kill you. Now, as
we start a new year, we get to see stories like the one I have outlined above,
and it wasn’t just limited to Michigan.
The NBC story mentioned that Rock Tops customers in Kansas, Ohio and Tennessee
have also come forward with claims that they were ripped
off.
In my personal experience, I have found most
fabrication shop owners to be honest, forthright people, but the damage that
comes from stories like this can be irreparable. As one of the many people who
rely on the success and reputation of the stone industry for their livelihood,
I pray that stories like this remain the dark exception and not a regular
occurrence.
Michigan Granite Shop Closing is Worst “Disaster†Yet