Holtzman Construction owner blames staff for unfinished jobs at Chapter 7 bankruptcy hearing
Brandon Holtzman, co-owner of Holtzman Construction and Holtzman Remodeling in Arizona, testified under oath Monday in the Chapter 7 bankruptcy of four Tempe-based LLCs, including Holtzman Construction LLC. He blamed two employees for money-losing jobs and said the company kept taking progress payments after learning it could not pay its debts.
Brandon Scott Holtzman, who owns half the business with Danny Holtzman, testified on Nov. 9 with his lawyer present. Questions came from Chapter 7 panel trustee Eric Haley, bankruptcy attorney Philip Rudd and customers on Zoom, FOX 10 Phoenix reported. Holtzman pinned the unfinished jobs on two employees: a salesperson who, he said, priced large projects at a loss to earn commissions, and an operations manager who let those bids pass through the company's in-house system as profitable. Neither held an ownership or management role, he said, and he built the system himself.
Leadership learned about two weeks before the Oct. 2 filing that the companies could not pay their debts, Holtzman testified. From then on they took no money for new projects but kept collecting progress payments on jobs already underway. He said no internal review of possible misuse of funds was done, that company vehicles and other property sit at a site the bankruptcy auctioneer knows about, and that an HR employee handled insurance records. He said he stepped away from the company for a break in May 2025.
Customers asked about their own jobs. One said the company cashed a check after going months without contacting Pinal County about the customer's permit; another asked why it took a large deposit for a disabled veteran's project. Holtzman said the company had run into unexpected trouble. Asked whether he runs construction firms elsewhere, he said no. FOX 10 found a Brandon Scott Holtzman linked to a Holtzman Construction LLC in California whose license still shows as active with the California State License Board.
Holtzman Construction and Holtzman Remodeling voluntarily canceled their Arizona licenses. Their bankruptcy attorney, Joel Sannes, told Arizona's Family in October that customers, suppliers and other creditors are owed $8 million and that any recovery could take months or years. The Arizona Attorney General's Criminal Division is reviewing consumer complaints but has not said whether it opened an investigation. FOX 10 did not report a date for the sale of company assets.
Why it matters: Arizona's Recovery Fund pays only homeowners, up to $30,000 per residence and $200,000 per license, and does not accept claims from subcontractors or suppliers. Trades Holtzman left unpaid have their claims in the bankruptcy and their lien rights under state law.
If this affects you
- Arizona's Residential Contractors' Recovery Fund pays eligible homeowners up to $30,000 per residence and no more than $200,000 per contractor license, and it does not accept claims from subcontractors or suppliers. roc.az.gov
- The Arizona Registrar of Contractors takes formal complaints against licensed contractors; for remodels and repairs, the deadline is two years from the date work was last performed. roc.az.gov
- The Arizona Attorney General's Office accepts consumer fraud complaints online, by fax or by mail. consumer-complaint.azag.gov
- According to the Registrar, a contractor's bankruptcy filing generally does not prevent it from authorizing a Recovery Fund payout to an eligible homeowner. roc.az.gov
Sources
- Homeowners face millions in unfinished projects as Tempe contractor declares bankruptcyArizona's Family (AZFamily), Oct 6
- Attorney General reviewing complaints against Holtzman Construction after bankruptcyFOX 10 Phoenix, Oct 9
- Holtzman Construction bankruptcy: Owner questioned by clients under oathFOX 10 Phoenix, Nov 9