Saturday, February 15, 2020

Police Investigating Tennessee Modular Home Factory

Franklin, TN Police are investigating a modular cabin company that took some customers' life savings before declaring bankruptcy

Riverwood Cabins, which had administrative offices in Franklin and a factory in Lebanon, took in more than $4 million in customer deposits for prefabricated cabins, before it declared bankruptcy on Monday.

The company was collecting deposits from new customers as recently as mid-January, even as purchasers who said they placed orders as long ago as December 2018 grew increasingly concerned because their cabins were never delivered.

Kent Lapp, CEO of Riverview Cabins

G. Rhea Bucy, an attorney for Riverwood CEO Kent Lapp, said he was unaware of the investigation and could not comment.

Lapp said in a statement Thursday he had invested a "substantial amount of fresh capital" into the company, including his own personal assets, but it proved "inadequate to meet the need."

Bankruptcy filings list more than 60 people with deposits ranging from $5,000 to $167,000 on modular log cabin homes. The homes are built in a factory, shipped in pieces to a customer's property, then fully reassembled.

CLICK HERE to read the entire Tennessean article

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