Minnesota Rusco suddenly closes after 70 years in business, leaving customers scrambling

Minnesota Rusco suddenly closes after 70 years in businessMinnesota Rusco suddenly closes after 70 years in business

It’s now official: Minnesota Rusco has closed its doors.

The New Hope home improvement company known for its jingle, “We’re Minnesota Rusco, since 1955,” confirmed its closure on Thursday, days after many Minnesotans started to suspect the news.

Several viewers have reached out to 5 EYEWITNESS NEWS saying they had already paid for projects that are now in limbo. But there’s a chance people who have paid for an unfinished project can get their money back.

At Pam Henning’s Blaine home, she picked Minnesota Rusco to help with major changes to the bathroom.

“I made a payment when we signed the contract and for other reasons we had to pay the rest,” Henning said.

But Thursday, Henning and other customers were left with a brief statement on the company’s website announcing Minnesota Rusco has ceased all operations:

“With heavy hearts we regrettably inform you, Minnesota Rusco, a Renovo Home Partners company, has ceased all operations,” the company posted on its website Thursday morning. “We would like to wish our staff and their families the best as they navigate these difficult times and thank all of Minnesota for their 70 years of support and trust.”

Three years ago, Renovo Home Partners — a Texas company backed by private equity — purchased Minnesota Rusco.

On Thursday, 5 EYEWITNESS NEWS spoke with former Minnesota Rusco owner Diana Deems, who says, “Our family is sick,” and there was “no indication from anyone in the company this was going to happen.” Deems also says Renovo Home Partners shut down six other big home improvement companies across the country this week without notice.

5 EYEWITNESS NEWS reached out to both Minnesota Rusco and Renovo Home Partners but hasn’t yet heard back.

Customers like Henning are now wondering what to do next.

“At this time I don’t have any money to put into it again. That was all the money I had,” Henning said. “They left people, so many people, without any choice.”

Sean O’Neil, director of licensing and enforcement for the Minnesota Department of Labor and Industry, says anyone impacted shouldn’t fret.

“It certainly sounds like this has been handled poorly,” he said. “I’m confident that many homeowners will get reimbursement.”

O’Neil says he believes people will get some of their money back through DLI’s Contractor Recovery Fund. O’Neil says it’s something only about a dozen states have, and it doesn’t involve any state general fund dollars.

“If any licensee gets money from a homeowner and they just ghost a homeowner — they don’t do any work, they don’t provide any materials they just skip town with the money — most certainly that would be a reimbursable expense for homeowners,” O’Neil said.

O’Neil says a civil judgement against the licensee is required before a homeowner can submit an application for potential reimbursement. Complaints can also be sent to DLI’s Enforcement Services.

“A longstanding licensee who’s been around forever, it’s very rare,” O’Neil said. “This is a blatant violation of the contractor licensing law, if accurate, what we’re hearing.”

A spokesman for Minnesota Attorney General Keith Ellison said the AG’s Office is prepared to help anyone who has suffered financial harm due to Minnesota Rusco’s sudden closure.

“Attorney General Ellison’s mission is to help Minnesotans afford their lives, and he takes issues where people pay for services they don’t receive seriously,” the AG’s Office said in a statement.

Ellison’s office encouraged anyone who used a credit card to pay for services not received to dispute the charges. If Minnesota Rusco or its parent company files for bankruptcy, consumers can also file claims in that bankruptcy case. In the meantime, anyone affected should keep any contracts, receipts or other documentation of their business with Minnesota Rusco.

You can report issues to the AG’s Office here.

Work on Henning’s bathroom was supposed to start in a few months. Now she, like many others, are left in limbo.

“It’ll probably be a long time before this gets settled,” Henning said.

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The post Minnesota Rusco suddenly closes after 70 years in business, leaving customers scrambling first appeared on KSTP.com 5 Eyewitness News.