Minnesota Rusco bankruptcy spurs at least 10 lawsuits; recovery fund capped at $550K per contractor
Minnesota Rusco, a 70-year-old New Hope home‑improvement company, abruptly ceased operations after parent Renovo Home Partners filed Chapter 7 bankruptcy for itself and 19 subsidiaries, leaving employees — who received only three days of health insurance — and customers with unfinished work and large prepaid sums; court filings list $100–$500 million in liabilities against $1–$10 million in assets, and at least 10 lawsuits have been filed. Because Rusco was DLI‑licensed, affected homeowners must first sue and obtain a court judgment to seek reimbursement from Minnesota’s Contractor Recovery Fund, but recoveries are constrained by limits of up to $550,000 per licensed contractor (and $100,000 per consumer), and state officials are urging consumers to file complaints and dispute charges.
📌 Key Facts
- Minnesota Rusco, a New Hope‑based home improvement company operating since 1955, has ceased all operations; its website posted a shutdown notice and its Facebook and LinkedIn profiles were taken down.
- Employees say they were blindsided by an abrupt Oct. 29 shutdown/notice (some were told around 8 a.m.), received only three days of health insurance, and were told the parent company, Renovo Home Partners, filed for bankruptcy that morning.
- Minnesota Rusco has filed for Chapter 7 bankruptcy as part of Renovo’s filings for all 19 subsidiaries nationwide; bankruptcy schedules list estimated liabilities of $100 million–$500 million and assets of $1 million–$10 million, and name creditors including Xcel Energy, Thomson Reuters, Marvin Windows, the City of South St. Paul, law firm Fredrikson & Byron and dozens of local contractors/vendors.
- At least 10 local lawsuits have been filed and the Minnesota Department of Labor and Industry (DLI) says it has heard from roughly 25–30 homeowners; new small‑claims filings and consumer reports include large unpaid prepayments — examples: a customer prepaid $48,000 for windows, a Lino Lakes customer paid $15,894, a New Hope customer paid $10,033.50, and others paid roughly half of a $30,000 contract shortly before the shutdown.
- Homeowners may be eligible to seek reimbursement from Minnesota’s Contractor Recovery Fund only after suing Minnesota Rusco and obtaining a court judgment; the fund is limited to up to $550,000 total per licensed contractor and up to $100,000 per consumer, which could limit recoveries given expected claim volume.
- DLI confirmed Minnesota Rusco is licensed, has provided contact and complaint submission channels for impacted consumers, and state Attorney General Keith Ellison urged affected consumers to file complaints and dispute credit‑card charges, offering phone assistance.
- Local vendors, advertisers and subcontractors are also exposed to unpaid receivables tied to the closure, compounding the financial fallout in the community.
📰 Sources (6)
Minnesota Rusco's sudden closure leaves customers facing losses
New information:
- At least 10 local lawsuits have already been filed against Minnesota Rusco/Renovo.
- Minnesota’s contractor recovery fund payouts are capped at $550,000 per contractor, likely limiting homeowner recoveries given expected claim volume.
- Renovo filed bankruptcy for all 19 of its subsidiaries nationwide (Minnesota Rusco among them).
- Customer specifics: homeowners paid roughly half of a $30,000 window contract one week before the abrupt shutdown.
- Local vendors/advertisers are also exposed to unpaid receivables tied to Minnesota Rusco’s closure.
Minnesota Rusco files for bankruptcy after abrupt closure
New information:
- Minnesota Rusco has filed for Chapter 7 bankruptcy, signaling liquidation.
- Bankruptcy schedules estimate liabilities between $100 million and $500 million and assets between $1 million and $10 million.
- Listed creditors include Xcel Energy, Thomson Reuters, Marvin Windows, the City of South St. Paul, Fredrikson & Byron, and dozens of local contractors.
- New small-claims filings detail individual losses: a Lino Lakes customer paid $15,894 on Oct. 16, 2025 for work never performed; a New Hope customer paid $10,033.50 for an unfinished shower remodel.
- Report notes six Renovo-owned companies have closed and employees received only three days of health insurance after the Oct. 29 shutdown notice.
Rusco employees 'blindsided' by sudden closure after 70 years in business
New information:
- Parent company Renovo Home Partners filed for bankruptcy Wednesday morning, according to employees notified at 8 a.m.
- Minnesota Rusco posted an official website statement confirming it has ceased all operations.
- Former employees say they had no advance notice and received only three days of health insurance.
- Attorney General Keith Ellison urged affected consumers to file complaints and dispute credit‑card charges; AG office provided phone contacts for assistance.
Minnesota Rusco fallout: What can current customers do?
New information:
- DLI says customers must first sue Minnesota Rusco and obtain a court judgment to claim from the Contractor Recovery Fund.
- Contractor Recovery Fund limits: up to $550,000 total per licensed contractor and up to $100,000 per consumer.
- DLI reports hearing from approximately 25–30 homeowners affected by the closure.
- Minnesota Rusco is confirmed as DLI-licensed, making affected homeowners potentially eligible for fund reimbursement.
- DLI provided contact and complaint submission channels for impacted consumers.
Minnesota Rusco, a 70-year-old home improvement company, appears to have closed
New information:
- Customer Jeremy Frahm says he prepaid $48,000 for window installation; crew did not show on Wednesday and the company is unreachable.
- Minnesota Rusco’s Facebook and LinkedIn profiles have been taken down.
- No bankruptcy filings or WARN/layoff notices were available as of Wednesday.
- A LinkedIn post by former Reborn Cabinets head Vince Nardo states Renovo Home Partners, Minnesota Rusco, Reborn Cabinets and two other companies have closed.
- Minnesota Rusco is based in New Hope and has operated since 1955.