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Menoken company owner files for bankruptcy, owes $1.8 million

(KFYR)
Published: Mar. 9, 2020 at 6:19 PM CDT
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A Menoken construction company owner filed for Chapter 7 bankruptcy in South Dakota in February.

Tyler Hofland, the owner of Hofland Homes LLC and Hofland Enterprises, Inc., filed for bankruptcy on Feb. 6, claiming he owes more than $1.8 million to residents and businesses in a dozen states.

Fifty-five businesses in Bismarck were named as a creditors, eight are located in Mandan.

Tyler Hofland opened an account with Hebron Brick in June of 2017 as his business started.

"We try to have good collecting procedures in place to help with that. But it is rather amazing to me that, that amount and that volume can happen in our small state. It's very surprising," said Gene Thurston, vice president at Hebron Brick and Block Supply.

A year later when payments were due, Hebron Brick could only get a hold of Hofland via text.

"The excuses were that he had a lot going on, and there's change orders, and there was always assurance of payments but he just got behind because of busyness," said Thurston.

When Hebron Brick did get payments, funds were insufficient.

"He paid us with two checks that in order to close on two projects he had, both of them which bounced," said Thurston.

They received notice in February of 2019 Hofland Homes planned to cease operations immediately.

Hebron Brick field a lawsuit shortly after.

"When you look at any time we have to write something off, it really affects every one of our employees," said Thurston.

But the thousands of dollars due to Hebron Brick are just a fraction of the 1.8 million owed to the 107 creditors listed in the bankruptcy notice.

According to the North Dakota Court System, Hofland owes more than $178,000 in judgements in Burleigh, Cass, and Stark County.

ND Courts also shows Hofland Homes LLC owes $47,000 in judgments in Burleigh and Morton County.

Federal documents show Hofland owes $1,834,534.46 to 107 different creditors.

The credit owed ranges from $1.00 to $177,000 to a single company.

Many of the companies listed on the 82 page document are construction companies, banks, and health care facilities.

We reached out to Hofland's attorney.

He said he would have to confer with Hofland regarding a statement to us.