Copyright startribune
Minnesota Rusco has filed for bankruptcy as the home remodeler known for a catchy jingle touting its 70 years in business carries more than $100 million in debt, dwarfing its existing assets many times over. In an initial filing in Delaware bankruptcy court, Minnesota Rusco claims to have no more than $10 million in assets and debts to as many as 1,000 creditors, many of whom are homeowners who made down payments for future remodeling jobs. After tallying costs, the business expects to have no money left to pay unsecured creditors like homeowners, subcontractors and suppliers, the court filings say. The bankruptcy petition, filed Monday under Chapter 7, seeks to liquidate any remaining assets of Minnesota Rusco and its 15 affiliate businesses, including Texas-based parent company Renovo Home Partners LLC, which bought Rusco from local ownership in a 2022 tie-up engineered by a private equity firm. “They were operating this business on the razor’s edge,” Edward Adams, a University of Minnesota law professor with expertise in bankruptcy cases, said of Rusco’s sizable debt relative to assets. Rusco’s long tenure in the Twin Cities came to an abrupt close last week. Its New Hope headquarters suddenly went dark, aside from its blinking roadside sign continuing to advertise free consultations. A brief message on its since-deleted website offered no explanation for the failure, extending best wishes to “our staff and their families ... as they navigate these difficult times.” The closure comes three years after the business sold to out-of-state owners. Private equity group Audax formed the parent company, which expanded to absorb Rusco and more than a dozen other contractors across the U.S., including home remodelers in Albuquerque, N.M.; Boise, Idaho; Wichita, Kan.; and Woburn, Mass. BlackRock, the world’s biggest asset manager, now holds the debt used to fund the expansion. Signs of financial trouble at Renovo and its contracting businesses emerged in late 2024.
