After sudden Minnesota Rusco closure, customers left high and dry have options

After 70 years, Minnesota Rusco, a home renovation business closed suddenly on Wednesday, Oct. 29. Rusco was sold in 2022 to Texas-based Renovo Home Partners, which has also ceased all operations.

“It was a great business,” said Minnesota and North Dakota Better Business Bureau CEO and President Kari Niedfeldt-Thomas. “So everyone is shocked at this situation.”

Niedfeldt-Thomas talked with MPR News host Cathy Wurzer about the sudden Rusco closure and what it means for clients and other businesses.

Below is a transcript of the conversation edited lightly for clarity. Listen to the full conversation by clicking the player above.

Have you been getting a lot of calls about this since Minnesota Rusco closed?

We started receiving phone calls immediately from consumers, and that is when we started looking into the situation.

Our understanding is that this is not just Minnesota Rusco, but it’s also connected to the parent company, Renovo Home Partners. All operations for all of the home improvement companies under that Renovo umbrella were ceased at that time.

Is it common to see home improvements paid for but not finished or even started?

It’s a situation that the Better Business Bureau faces regularly. We have a team who has a hotline, and we’re constantly talking to consumers that have worked with a contractor.

We always encourage people to look at our website to verify a contractor, to see their rating and any consumer concerns that have been raised in the past. But there are some situations that no one can predict.

State officials say customers can try to get their money back from the State Contractor Recovery Fund

Yes, the Minnesota Department of Labor and Industry has a contractor recovery fund, and we are encouraging — as one of the many steps — consumers to seek assistance through that fund. Before applying, however, consumers have to have a final judgment against that contractor — a successful lawsuit. That is part of that filing process.

But before consumers even look there, they should first gather all the information they have. That would be contracts, invoices, any communication, any warranty information, and any other information that would be helpful for an insurance claim; that would be the first step.

Then, if any purchases were made through a credit card or the bank, we encourage consumers to contact those entities to dispute charges for unfinished work.

For those not directly affected by the closure of Minnesota Rusco, are there any lessons to be learned from what happened this week?

I do think that it's a shock for everyone when a situation like this happens, but what consumers can do is make sure that they’re looking into a company that they’re working with and ask: Is there a way to pay as you go and not put all of your money down up-front?

In pay-as-you-go situations, consumers are often better able to access what they want.

Better Business Bureau was founded 113 years ago to be able to bring trust and ethics to the marketplace, and we make sure that businesses are aware of what those standards are, and at the same time, we’re here to support consumers.

One of the other pieces: We’re able to get on top of situations the minute consumers reach out to us, so if you’ve had a problem, let us know, and we can make sure that we’re updating those business profiles on our website. We’re also able to be that advocate for consumers.

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