Attorney General Ellison issues consumer alert about Minnesota Rusco’s abrupt closing

Private equity backed home renovation company, Minnesota Rusco, ceased operations without warning on October 29 leaving many consumers out thousands of dollars and with unfinished work

November 21, 2025 (SAINT PAUL) — Minnesota Attorney General Keith Ellison is alerting Minnesotans harmed by the abrupt closure of Minnesota Rusco what options they may have to recover funds paid to Rusco for work that was never completed. Attorney General Ellison’s alert comes after Minnesota Rusco, a home renovation company that operated in the state for 70 years, abruptly ceased all operations on October 29, 2025, leaving a large number of consumers who had signed contracts and paid sizeable deposits to Minnesota Rusco with unfinished work.

On November 3, 2025, Minnesota Rusco filed for Chapter 7 bankruptcy in the United States Bankruptcy Court in Delaware.  See Case No. 25-11951-TMH.  Although Minnesota Rusco had a long history of local ownership it was sold in 2022 to Texas-based Home Renew Buyer, Inc. d/b/a Renovo Home Partners, backed by private equity.  In late October, Renovo Home Partners closed its doors, simultaneously shuttering sixteen affiliated subsidiaries, including Minnesota Rusco, operating in at least 9 states. 

Renovo Home Partners is currently owned by BlackRock TCP Capital Corp., whose investment adviser is an indirect subsidiary of the world’s largest asset manager, BlackRock, based in New York.  Media reports have linked Minnesota Rusco’s closure to “roll-up” strategies used by private equity firms in which firms buy up local businesses in the same industry and finance the acquisitions with heavy debt, leaving the businesses vulnerable and highly leveraged. This is done to maximize returns for the private equity firm by shifting the risk of that debt to the businesses they acquire, while the private equity firm reaps most of any resultant financial benefits. In turn, this tactic also leaves consumers vulnerable. Under federal law, “secured creditors,” those with collateral backing their claims, are first in line for repayment when a company files for bankruptcy.  In contrast, customers who put down large deposits for unfinished work are treated as “unsecured creditors” and often recover little.   See 11 U.S.C.A. §§ 506—507.

“Private equity firms should not be allowed to gamble with your hard-earned savings and then hide behind corporate structures to avoid accountability,” said Attorney General Keith Ellison. “I am outraged on behalf of the families across Minnesota who trusted this well-known, Minnesota company, only to have the rug pulled out from under them by private equity firms pulling strings behind the scenes. These firms’ relentless pursuit of short-term profit at the expense of Minnesota jobs, businesses, and families is deeply troubling and raises fundamental questions about how we treat consumers and regulate private equity.”

If you are a Minnesota consumer who was impacted by Minnesota Rusco’s sudden closure and bankruptcy, here’s what you need to know:

1. Preserve your records.

Keep copies of all contracts, invoices, receipts, photos, and communications like emails or text messages to document any money paid to Minnesota Rusco in exchange for services that were not delivered.  These documents will be important in efforts to get your money back through any court proceedings.

2. If you paid with credit or financing, contact your payment source as soon as possible. 

Credit card companies often allow “chargebacks” for undelivered services.  If you paid Minnesota Rusco for services you did not receive with a credit card, contact your credit card company directly to request a chargeback and learn more about the process.  You may be asked to submit documentation to support your chargeback request.  

If you paid Minnesota Rusco for services you did not receive by entering a financing arrangement, a federal regulation known as the Holder Rule may help.  The Holder Rule is a federal regulation intended to help consumers when a defective or fraudulent product or service is purchased with credit extended directly by the seller or arranged by the seller. If the Holder Rule applies to your financing arrangement, you may be able to stop paying on the loan and possibly obtain a refund of any payments you made on the loan if a product or service is defective or not provided.  More information about the Holder Rule and how to proceed if you believe the Holder Rule applies to your loan can be found at https://www.ag.state.mn.us/Brochures/pubHolderRule.pdf.

If you believe the Holder Rule may apply to you, check your financing agreement for a statement similar to the following:

ANY HOLDER OF THIS CONSUMER CREDIT CONTRACT IS SUBJECT TO ALL CLAIMS AND DEFENSES WHICH THE DEBTOR COULD ASSERT AGAINST THE SELLER OF GOODS OR SERVICES OBTAINED PURSUANT HERETO OR WITH THE PROCEEDS HEREOF. RECOVERY HEREUNDER BY THE DEBTOR SHALL NOT EXCEED AMOUNTS PAID BY THE DEBTOR HEREUNDER.

Even if you believe the Holder Rule applies, always be cautious about stopping payment to a creditor to avoid any collections proceedings or negative credit reporting. 

3. File a complaint with our Office.

If you have been impacted, submit a complaint to the Minnesota Attorney General’s Office.  The Office is tracking this matter as it develops and can help provide consumers with additional information about their rights, help mediate disputes with their credit card or financing companies, and keep consumers informed about the latest developments in Minnesota Rusco’s bankruptcy proceeding, but we need to hear from consumers in order to do so.

Online complaint forms can be found here.  You can also reach the Office of the Minnesota Attorney General at 651-296-3353.

4. You may be able to get your money back through the State Contractor Recovery Fund.

The Minnesota Department of Labor and Industry (DLI) Contractor Recovery Fund is limited but can pay up to $550,000 on behalf of a licensed residential contractor or remodeler, such as Minnesota Rusco, with a limit of $100,000 per consumer.  To qualify for recovery through the Contractor Recovery Fund, harmed consumers must first obtain a final judgment against Minnesota Rusco and formally docket and enter that judgment in District Court. 

Obtaining a final judgment against Minnesota Rusco is currently more difficult because the company has filed for bankruptcy, resulting in an automatic stay on lawsuits seeking to recover money from the company.  Consumers who intend to file a lawsuit against Minnesota Rusco for the purpose of accessing the DLI Contractor Recovery Fund may petition the Judge of Bankruptcy Court to lift the automatic stay, by explaining that their lawsuit is only to obtain compensation from the Fund, and that they understand that they will not be able to collect the judgment from the contractor directly. Consumers pursuing this option may want to consult an attorney for additional information regarding how to lift an automatic stay in a bankruptcy proceeding.

The Minnesota Attorney General’s Office is currently assessing additional ways impacted consumers might obtain a final judgment against Minnesota Rusco for the limited purpose of accessing state funds set aside to restitute harmed consumers.   

More information about the Contractor Recovery Fund can be found here.  Questions about how to apply for recovery from the Fund can be directed to contractor.recoveryfund@state.mn.us or 651-284-5057.  

5. The Minnesota Attorney General’s Office will monitor and participate in Minnesota Rusco’s bankruptcy case and advocate for Minnesota consumers.

A bankruptcy proceeding means that a court will supervise the liquidation of Minnesota Rusco’s remaining assets.  Unfortunately, consumers harmed by unreturned down payments and unfinished work are typically considered “unsecured creditors” in bankruptcy proceedings.  Unsecured creditors are often last in line to receive money they are owed and sometimes end up with little to no recovery when a company does not have the assets to satisfy all their creditors.

The Minnesota Attorney General’s Office is currently investigating what caused the abrupt closure of Minnesota Rusco and Renovo Home Partners, as well as why consumers were not provided advance warning of any impending closure or bankruptcy.  The Office will also continue to monitor and participate in the bankruptcy proceedings to advocate for harmed consumers, and will make consumers aware of their rights, including any future claim deadlines.