How to Recover Funds After Minnesota Rusco Closes Its Doors For Good

This has been a topic that many  people are concerned about. Minnesota Rusco abrubtly closed and without any warning on October 29th.  This left several of their customers with unfinished projects.  Remodel customers were left that day with no communication as to what was going on, there was no communication as to what would happen now, or what the plan was, or at the top of the list - what happened to the money that they had already paid to Minnesota Rusco??

Now that it's been almost a month since they closed, Minnesota Attorney General, Keith Ellison is stepping in with what the options are for Minnesota Rusco's former customers.

MINNESOTA RUSCO FILED FOR CHAPTER 7 BANKRUPTCY

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. 

When that happened, because MN Rusco was owned by that parent company, the 9 companies that were owned by them, including MN Rusco,  also closed their doors.

LEFT WITH AN UNFINISHED MN RUSCO PROJECT - HERE IS WHAT YOU NEED TO KNOW

Make sure you have and keep copies of all the communication with MN Rusco.  That means everything.  Voice Mails, emails, texts, mailings, and any documents showing what was agreed to and what you had already paid.

If you paid with a credit card, or through finance, like a loan, work with your financial institiution.  There are laws protecting you from "undelivered" products and services. 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 haven't already, file a complaint with the Attorney General's office.

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. 

In order to qualify for this recovery fund, you do have to have the final judgement against MN Rusco, and have it entered into the docket in District Court.  The Attorney General's office can help you with that as well.

More information on the Recovery Fun can be found on their website.  

Unfortunately, this is kind of a waiting game, as nothing is going to happen immediately.  Obviously some people, depending on the project, will have to move forward with another contractor, and work with them on the work and the payment.  Generally they all know what happened with MN Rusco, and hopefully they can work with you as economically as possible.

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