MN Residents Could Get Money Back After Company’s Sudden Shutdown

ST. PAUL, MN — Minnesota residents who paid a home construction company before it abruptly shut down may have a new path to recover some of their money, according to Attorney General Keith Ellison.

Ellison announced Friday that the U.S. Bankruptcy Court approved a new procedure meant to make it easier for former Minnesota Rusco customers to pursue claims and seek recovery through the Minnesota Department of Labor and Industry’s Contractor Recovery Fund.

Minnesota Rusco, a 70-year home construction company, abruptly ceased operations on Oct. 29, 2025, leaving many customers with unfinished work after they had signed contracts and paid deposits, according to Ellison’s office.

The company filed for Chapter 7 bankruptcy on Nov. 3, 2025.

Ellison’s office said Minnesota Rusco had been locally owned for most of its existence before it was sold in 2022 to Renovo Home Partners, which is owned by a subsidiary of New York-based BlackRock.

The new bankruptcy court procedure is meant to help former customers get around a legal obstacle created by the bankruptcy case.

Normally, homeowners seeking reimbursement through the Contractor Recovery Fund must first file a claim in Conciliation Court or District Court, win a judgment, and then submit that judgment to the fund.

But Minnesota Rusco’s bankruptcy created an automatic stay that complicated lawsuits seeking money from the company, according to Ellison’s office.

Under the new procedure, harmed Minnesota Rusco customers can request that the stay be lifted by completing a declaration and sending it to counsel for the court-appointed trustee in the bankruptcy case.

The declaration can be sent by email to gtaylor@ashbygeddes.com, or by U.S. Mail to:

Ashby & Geddes, P.A.
500 Delaware Avenue, 8th Floor
Wilmington, Delaware 19899
Attn: Gregory A. Taylor, Esq.

The trustee’s counsel will then file the declaration with the court on behalf of the consumer, according to Ellison’s office.

After that, any party of interest has 10 days to object. If no one objects, the court will lift the automatic stay for that former customer, allowing them to seek a judgment in Conciliation Court or District Court.

Once a customer has a judgment, they can apply for relief through the Contractor Recovery Fund.

Only Minnesota residents may apply to the fund. Subcontractors and material suppliers affected by Minnesota Rusco’s closure are not eligible.

Residents seeking money through the fund are strongly encouraged to apply before July 1, 2026, when the current application cycle closes, according to Ellison’s office.

The fund has two application cycles each year.

There is also a major limit: State law caps the total amount the Contractor Recovery Fund can pay out for claims against one company at $550,000.

Because so many homeowners suffered out-of-pocket losses after Minnesota Rusco closed, Ellison’s office said it is likely that total claims will exceed that amount. Eligible homeowners may receive a prorated amount, and claims submitted in the current cycle could exhaust the money available for future cycles.

For more information about the Contractor Recovery Fund, residents can email contractor.recoveryfund@state.mn.us, call 651-284-5057, or visit the Minnesota Department of Labor and Industry’s website.

Ellison’s office said it continues to investigate Minnesota Rusco’s closure.