Minnesota Attorney General Keith Ellison has issued a consumer alert following the sudden closure of Minnesota Rusco, a home renovation company that operated in the state for 70 years. The company ceased operations without warning on October 29, 2025, leaving many customers with unfinished projects and financial losses.
Minnesota Rusco filed for Chapter 7 bankruptcy in Delaware on November 3, 2025. The company was acquired in 2022 by Texas-based Home Renew Buyer, Inc., also known as Renovo Home Partners, which is backed by private equity. In late October, Renovo Home Partners closed its doors and shut down sixteen affiliated subsidiaries across at least nine states.
Renovo Home Partners is owned by BlackRock TCP Capital Corp., whose investment adviser is connected to BlackRock, one of the world’s largest asset managers based in New York. Media reports have associated Minnesota Rusco’s closure with “roll-up” strategies used by private equity firms. These strategies involve acquiring local businesses in the same industry and financing purchases with significant debt. As a result, these businesses can become highly leveraged and vulnerable to financial distress while most benefits go to the private equity firm.
Federal law prioritizes repayment to secured creditors—those with collateral backing their claims—in bankruptcy proceedings. Customers who paid deposits for unfinished work are considered unsecured creditors and often recover little from such proceedings.
“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.”
The Attorney General’s Office advises affected consumers to keep all documentation related to contracts or payments made to Minnesota Rusco for services not delivered. Consumers who paid by credit card may request chargebacks through their credit card companies if services were not received.
Those who financed their payments may be protected under a federal regulation called the Holder Rule if credit was extended directly or arranged by the seller. This rule could allow consumers to stop paying on loans or seek refunds if products or services were defective or undelivered. More information about this regulation is available at https://www.ag.state.mn.us/Brochures/pubHolderRule.pdf.
Consumers impacted by Minnesota Rusco’s closure are encouraged to file complaints with the Minnesota Attorney General’s Office so they can receive updates about their rights and assistance during ongoing bankruptcy proceedings.
The Minnesota Department of Labor and Industry (DLI) Contractor Recovery Fund may provide compensation up to $100,000 per consumer harmed by licensed residential contractors like Minnesota Rusco; however, consumers must first obtain a final judgment against the contractor before accessing these funds. Because bankruptcy proceedings place an automatic stay on lawsuits seeking recovery from assets held by Minnesota Rusco, affected individuals may need legal advice on how best to proceed if they wish to access this fund.
A court-supervised liquidation process will determine how remaining assets are distributed among creditors; typically unsecured creditors—including those owed money for incomplete work—are last in line for payment when assets are limited.
The Attorney General’s Office continues investigating what led up to both closures and why customers were not warned beforehand. The office will also monitor developments in bankruptcy court as it advocates for those harmed.
