Minnesota Rusco Lawsuit, Breaking News on Company Closure, Customer Rights & Legal Recovery Options [2025]

Minnesota Rusco officially ceased all operations on October 31, 2025, after 70 years in business, leaving hundreds of customers with an estimated $15 million in unfinished projects. Customers like Kari and Jeremy Frahm lost nearly $48,000 for window installations that were never completed. While no class action lawsuit has been filed yet, Minnesota Attorney General Keith Ellison and his consumer protection team are investigating the closure, and affected customers are exploring multiple legal recovery options through state funds and potential litigation.

What Happened to Minnesota Rusco? The Sudden Shutdown Explained

The New Hope-based home remodeling company shut down without warning on Tuesday, October 29, 2025, with staff notified that morning. Minnesota Rusco was acquired by Dallas-based Renovo Home Partners in 2022, which was backed by private equity. Signs of financial trouble emerged as early as late 2024, when BlackRock executives placed Renovo on non-accrual status, citing challenges integrating acquisitions and a cooling home-remodeling market.

Renovo Home Partners, the parent company, filed for Chapter 7 bankruptcy, affecting all six companies under its umbrella including Minnesota Rusco. Six similar companies owned by Renovo closed simultaneously, suggesting systematic corporate failure rather than isolated mismanagement.

Is There a Minnesota Rusco Class Action Lawsuit?

No formal class action lawsuit has been filed against Minnesota Rusco as of October 31, 2025. However, several factors indicate potential litigation:

The Minnesota Attorney General’s Office is investigating and has asked affected consumers to file complaints. The Better Business Bureau is directing impacted customers to both the Attorney General’s Office and the Minnesota Department of Labor and Industry. Legal experts anticipate consumer protection lawsuits may emerge as affected parties organize their claims.

Multiple legal theories could support future litigation:

• Breach of contract for unfinished work
• Fraudulent practices if the company accepted deposits while insolvent
• Violation of Minnesota consumer protection statutes
• Potential claims against parent company Renovo and its owners

Minnesota Contractor Recovery Fund: Your Primary Legal Remedy

The Minnesota Department of Labor and Industry’s Contractor Recovery Fund compensates residential property owners who suffered losses due to a licensed contractor’s fraudulent, deceptive or dishonest practices, conversion of funds, or failure of performance.

Key Recovery Fund Details:

Eligible claimants may receive up to $100,000 per claim for unfinished work. The fund specifically compensates owners or lessees of residential property in Minnesota for actual and direct out-of-pocket losses.

Eligibility Requirements:

• Must be a Minnesota residential property owner or lessee
• Contractor must have been properly licensed
• Must obtain a final judgment against the contractor
• Must demonstrate diligent pursuit of other remedies
• Application must be filed within specific timeframes

You can file an application to the Contractor’s Recovery Fund even if the judgment against the contractor has been discharged in bankruptcy. If Minnesota Rusco filed bankruptcy before you obtained a judgment, you can file a motion to the bankruptcy court to stay proceedings solely to obtain a judgment for your recovery fund claim.

How to File a Claim: Step-by-Step Recovery Process

1. Document Everything Immediately

Gather all contracts, receipts, canceled checks, correspondence, photos of incomplete work, and payment records. The Attorney General’s Office advises consumers to keep contracts, receipts and other financial documents from Rusco.

2. File Complaints with Multiple Agencies

File a complaint with the Minnesota Attorney General’s Office consumer protection division. This helps build a pattern of complaints that could support future enforcement action or class litigation.

Contact the Minnesota Department of Labor and Industry to begin the Contractor Recovery Fund process at [email protected] or (651) 284-5057.

3. Pursue Credit Card Chargebacks

Consumers who made down payments by credit card can dispute those charges. Contact your credit card company immediately to initiate a chargeback for goods or services not received.

4. Consider Small Claims Court

For losses under Minnesota’s small claims limit, you may file directly in conciliation court without needing an attorney. This provides a faster, less expensive path to obtaining a judgment for your recovery fund application.

5. Monitor Bankruptcy Proceedings

With Renovo filing Chapter 7 bankruptcy, affected customers should file claims in bankruptcy court. While recovery through bankruptcy is limited, it preserves your rights and may yield partial compensation.

What Compensation Can Minnesota Rusco Customers Recover?

Affected customers have multiple potential recovery sources:

Contractor Recovery Fund: Up to $100,000 per claim, though recovery is limited to actual and direct out-of-pocket losses, excluding attorney fees and litigation costs.

Credit Card Chargebacks: Full refund of amounts charged to credit cards, typically processed within 60-90 days.

Bankruptcy Claims: Limited recovery depending on available estate assets and priority of claims.

Future Class Action Settlement: If a class action lawsuit materializes, settlement amounts would be determined through litigation or negotiation.

TWS Remodeling Assistance: TWS Remodeling is offering 50% discounts on contracts for customers who can demonstrate previous agreements or deposits with Minnesota Rusco.

Minnesota Rusco Warranty Issues: What Happens Now?

Minnesota Rusco offered a limited lifetime transferrable warranty on home improvement products and a one-year warranty for labor. With the company’s closure, warranty coverage is uncertain.

Check Your Manufacturer Warranties: If the warranty was issued by the manufacturer rather than Minnesota Rusco, you may still have coverage. Contact product manufacturers directly with model numbers and installation dates.

Document Warranty Issues: Photograph any defects or problems with completed work. This documentation will be crucial for any future claims.

Who’s Eligible for Minnesota Rusco Legal Recovery?

You may be eligible for recovery if you:

• Paid Minnesota Rusco for home improvement work that was never started
• Have partially completed projects that were abandoned
• Paid deposits for materials or services not delivered
• Have defective work covered under warranty
• Are a Minnesota resident with a residential property
• Have written contracts, receipts, or payment documentation

Subcontractors and suppliers who provided materials and labor but weren’t paid also face losses, though their recovery options differ from homeowner claims.

What Legal Action Is the Minnesota Attorney General Taking?

Minnesota Attorney General Keith Ellison’s consumer protection team is investigating the closure and is committed to helping consumers who suffered financially. The AG’s office encouraged those financially harmed to file complaints.

The Attorney General’s Office typically investigates whether consumer protection laws were violated, such as:

• Accepting deposits while knowing the company was insolvent
• Deceptive business practices
• Violation of contractor licensing requirements
• Patterns of consumer harm requiring enforcement action

While the AG cannot file lawsuits on behalf of individual consumers, they can pursue enforcement actions against companies with patterns of illegal behavior, potentially resulting in restitution for victims.

Private Equity’s Role: Can You Sue Renovo or BlackRock?

Minnesota Rusco operated under a complex corporate structure involving Dallas-based Renovo Home Partners and ultimately BlackRock TCP Capital Corp. BlackRock TCP Capital’s investment adviser is an indirect subsidiary of global asset manager BlackRock.

This corporate structure creates potential “piercing the corporate veil” claims if:

• Parent companies exercised excessive control over operations
• Corporate formalities weren’t observed
• The subsidiary was inadequately capitalized
• Assets were improperly transferred before closure

BlackRock recorded $66 million in realized losses related to Renovo in its second-quarter 2025 earnings report, indicating awareness of financial distress months before the closure.

Consumer attorneys may explore whether parent company liability exists, though these cases are complex and require demonstrating the subsidiary was merely an “alter ego” of the parent.

Similar Cases: Renovo’s Other Closures

Six companies within the Renovo network closed simultaneously. Former executives have spoken out about the collapse. Vince Nardo, former president of Reborn Cabinets (another Renovo subsidiary), stated he stepped away in late 2024 as he was “unable to keep watching what was unfolding,” noting how private equity “can easily destroy great companies”.

This pattern of simultaneous closures across multiple states may support coordinated legal action or multi-state litigation against Renovo and its owners.

Timeline: What Happens Next for Minnesota Rusco Customers?

Immediate (October-November 2025):

• File complaints with AG’s office and Better Business Bureau
• Initiate credit card chargebacks
• Document all losses with photos and receipts
• Contact Minnesota Department of Labor and Industry about recovery fund

Short-term (December 2025-March 2026):

• Renovo bankruptcy proceedings unfold
• File claims in bankruptcy court
• Begin obtaining judgments through small claims court
• Monitor for class action lawsuit announcements

Medium-term (Spring-Summer 2026):

• Submit applications to Contractor Recovery Fund with judgments
• Participate in any class action certification
• AG’s office may announce enforcement actions

Long-term (Fall 2026 and beyond):

• Recovery Fund processes applications (120-day review period)
• Class action settlement negotiations or trial
• Distribution of any bankruptcy estate assets

How to Protect Yourself When Hiring Contractors

The Minnesota Rusco collapse highlights critical consumer protections:

Check Contractor Licensing: Verify licenses through the Minnesota Department of Labor and Industry’s online lookup tool.

Limit Down Payments: Minnesota law limits contractor down payments. Never pay the full amount upfront.

Use Credit Cards: Payment by credit card provides chargeback protection unavailable with cash, checks, or bank transfers.

Research Company Finances: Check for bankruptcy filings, liens, and lawsuits before hiring contractors for large projects.

Get Multiple Bids: Compare proposals from several licensed contractors before making decisions.

Understand Your Rights: Familiarize yourself with the Contractor Recovery Fund and your legal protections before starting projects.

Related Resources for Minnesota Rusco Customers

Minnesota Attorney General Consumer Complaints: https://www.ag.state.mn.us/Office/Complaint.asp Phone: (651) 296-3353 (Twin Cities) or (800) 657-3787 (Outside Twin Cities)

Minnesota Department of Labor and Industry Contractor Recovery Fund: https://www.dli.mn.gov/workers/homeowners/contractor-recovery-fund Email: [email protected] Phone: (651) 284-5057

Better Business Bureau Minnesota: File complaints and check contractor ratings

For assistance with related consumer protection matters, see our guides on how to sue a contractor, consumer protection attorneys, and debt collection defense.

FAQs About Minnesota Rusco Legal Issues

Is there a class action lawsuit against Minnesota Rusco?

No class action lawsuit has been filed as of October 31, 2025. However, the Minnesota Attorney General is investigating, and consumer attorneys are evaluating potential claims. Class actions typically emerge several months after mass consumer harm as affected parties organize.

How much can I recover from the Minnesota Contractor Recovery Fund?

You may receive up to $100,000 per claim for unfinished work. The fund compensates actual out-of-pocket losses but doesn’t cover attorney fees, litigation costs, or interest.

What if I paid Minnesota Rusco with a credit card?

You can dispute charges with your credit card company. File a chargeback claim immediately, explaining that goods and services were not delivered. Credit card companies typically have 60-day dispute windows.

Can I still file a claim if Minnesota Rusco is in bankruptcy?

Yes. You can file an application to the Contractor’s Recovery Fund even if the judgment against the contractor has been discharged in bankruptcy. You may also file claims in bankruptcy court.

What happened to Minnesota Rusco’s warranties?

It’s unclear what recourse customers have for warranties, but you should check whether warranties were issued by product manufacturers rather than Minnesota Rusco. Manufacturer warranties may still be valid.

How long does the Contractor Recovery Fund process take?

The Minnesota Department of Labor and Industry has 120 days after receipt of your application to accept, modify, or deny your claim. However, you must first obtain a judgment against the contractor.

What should I do if my Minnesota Rusco project is incomplete?

Document everything with photos and written descriptions. File complaints with the Attorney General and Better Business Bureau. Consider hiring another licensed contractor to complete work, saving all receipts for potential recovery fund claims.

Legal Disclaimer: This information is for educational purposes only and does not constitute legal advice. The Minnesota Rusco situation is rapidly developing, and legal options may change as investigations progress and potential litigation emerges. Consult an attorney specializing in consumer law for legal guidance specific to your situation. Facts presented are based on public reports and court documents available as of October 31, 2025.

Last Updated: October 31, 2025

About the Author

Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
Her writing blends real legal insight with plain-English explanations, helping readers stay informed and legally aware.
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