A construction firm tasked with installing fiber optic internet in Arizona’s East Valley has filed for bankruptcy, triggering a cascade of lawsuits and financial hardship for local businesses, according to KPNX-TV. Tilson Technology Management filed for Chapter 11 bankruptcy in late May, blaming Gigapower, AT&T and BlackRock’s joint venture, for withholding payments. Gigapower, in turn, has sued Tilson in Arizona, accusing the company of refusing to release fiber installation materials stored in a Valley warehouse.
The relationship between the two collapsed earlier this year, with Gigapower terminating Tilson’s work in the state. Tilson also faces a class-action lawsuit from 117 former employees who were terminated in May. The employees allege they were let go without the legally required notice.
While legal disputes unfold, local business owners say they’ve been left in the lurch by Tilson’s financial collapse. Among them is Shelley Kranich, owner of Mobile Mix Inc., a family-run concrete delivery business in operation for 25 years.
Kranich said Tilson approached her company for services while working on fiber installation in Gilbert and Chandler. Though initially wary, she agreed after going through an extensive vetting process that gave the impression Tilson was a stable, multistate operation.
“We were a little bit suspicious with Tilson going in, but they seemed to be a large, reputable company,” Kranich said.
Unbeknownst to her, Tilson was already the subject of multiple nonpayment complaints and residential damage reports, including cracked driveways and sewage backups caused by damaged lines. “It feels like a slap in the face,” she said, noting her company was brought in only after Tilson had allegedly failed to pay two previous vendors.
Mobile Mix performed work for about a month earlier this year, restoring concrete in areas Tilson had excavated. When it came time to collect the $31,000 owed, Tilson abruptly halted operations and ceased communications.
Reader Interactions