Colorado Tiny Home Builder Owes $2.7 Million, Files For Bankruptcy
Colorado Springs-based Tumbleweed Tiny House Co. filed for Chapter 11 bankruptcy on March 4 to reorganize and help keep the business alive by paying creditors over time.
This happened about three years after being featured on the show 'The Profit'.
The tiny house manufacturer said in the filing it owes at least $2.75 million in loans and $273,500 in material costs to approximately 100 and 199 creditors.
The company listed assets totaling between $500,000 and $1 million.
According to the company’s website, the company offers four styles of tiny homes, ranging from about $57,000 for 166 square feet to about $77,000 for 245 square feet.
Founded in 1999 Tumbleweed, the company dubbed Steve Weissmann the CEO in 2007.
In November 2017, Tumbleweed appeared on The Profit.
According to CNBC, the tiny home company was over $1 million in debt and one week from bankruptcy when the show aired.
Lemonis gave Tumbleweed a $3 million loan in return for 75 percent equity in the business, according to CNBC.
Lemonis’ FreedomRoads Holding Co. is owed $2.7 million by Tumbleweed, according to the filing.
Marcus Lemonis accuses this tiny home business owner of running a ‘smoke and mirrors’ operation from CNBC.