MN Consumer Alert: Homeowners Warned About Minnesota Rusco’s Sudden Shutdown

ST. PAUL, MN — Minnesota Attorney General Keith Ellison is urging Minnesotans to act quickly if they lost money when Minnesota Rusco suddenly shut down in late October, leaving customers with unfinished home renovation projects and large, unrecovered deposits.

Minnesota Rusco, a home renovation company that operated in the state for 70 years, ceased all operations on Oct. 29 with no warning.

The closure left a long list of Minnesota homeowners with half-finished work and thousands of dollars in deposits that may never be recovered.

The company filed for Chapter 7 bankruptcy in Delaware on Nov. 3

Court filings show that Minnesota Rusco and 15 other affiliated firms across at least nine states were all shuttered at the same time.

Renovo Home Partners, which bought the businesses in 2022, is backed by private equity and owned by BlackRock TCP Capital Corp. Its investment adviser is an indirect subsidiary of BlackRock, the world’s largest asset manager.

According to Ellison’s office, media reports have tied the closures to private-equity "roll-up” strategies, where firms buy local companies using heavy debt, shift financial risk to the acquired businesses, and leave customers exposed when those companies collapse.

“Private equity firms should not be allowed to gamble with your hard-earned savings and then hide behind corporate structures to avoid accountability,” Ellison said, calling the closures “deeply troubling” for Minnesota families.

What Impacted Consumers Should Do

Ellison’s alert outlines several steps Minnesotans can take now:

1. Save all documentation.

Contracts, receipts, invoices, photos, emails, and texts will be important for any claim or court process.

2. If you paid by credit card or financing, contact the lender.

Credit card companies may allow chargebacks for undelivered services.

Consumers who financed their projects may be protected under the federal Holder Rule, which allows borrowers to stop payments or seek refunds if a seller fails to deliver the services.

3. File a complaint with the Attorney General’s Office.

The office can help mediate with lenders, provide updates on the bankruptcy case, and track the number of affected Minnesotans.

4. You may qualify for the State Contractor Recovery Fund.

The Minnesota Department of Labor and Industry can pay up to $100,000 per consumer, with a $550,000 cap per contractor. Consumers will need a court judgment against Minnesota Rusco for the claim, which may require petitioning the bankruptcy judge to lift the automatic stay.

5. The AG’s office will participate in the bankruptcy case.

A bankruptcy judge will oversee the liquidation of Minnesota Rusco’s assets. Consumers are considered “unsecured creditors,” meaning they are typically last in line for repayment.

State officials are also investigating why Minnesota Rusco and Renovo Home Partners collapsed so abruptly and whether consumers were misled or left without warning before the shutdown.

Minnesotans impacted by the closure can file a complaint online or contact the Attorney General’s Office at (651) 296-3353.

More information about the state Contractor Recovery Fund is available through the Department of Labor and Industry at contractor.recoveryfund@state.mn.us or 651-284-5057.