On October 28, 2025, Minnesota Rusco—a home remodeling fixture in the state for 70 years—abruptly closed its New Hope headquarters, leaving hundreds of customers with unfinished projects and employees without jobs. The company, known for its “since 1955” jingle and deep roots in Minnesota’s home improvement scene, vanished overnight without filing for bankruptcy or issuing any warning. Workers arrived to locked doors and erased social media accounts, while homeowners discovered their contractors had disappeared mid-renovation.
Homeowners and Employees Left in Limbo
The closure’s impact was immediate and severe. Jeremy Frahm of Mora, Minnesota, lost nearly $48,000 on window installations that never began, joining hundreds of others across the state who found themselves with paid deposits and abandoned contracts. The Better Business Bureau reported a surge in complaints. Employees—between 100 and 300 at the Minnesota location—were told to clean out their desks and informed their health insurance would expire within three days. “They said, ‘Clean out your desk. We’re closing our doors,'” recalled one blindsided worker. Many sales staff scrambled to contact competitors for advice, while families who had dedicated years to the company faced sudden financial hardship.
A Legacy Undone by Corporate Collapse
Minnesota Rusco’s collapse was especially shocking given its long history. Founded in 1955, the company became a household name through persistent advertising and State Fair appearances. Its jingle was woven into the fabric of Minnesota life, making the sudden disappearance feel like the loss of a community institution. The shutdown was orchestrated by Renovo Home Partners, Minnesota Rusco’s Dallas-based parent company, which closed all its subsidiaries nationwide on the same day. Other affected brands included Dreamstyle Remodeling, Alure Home Improvements, NEWPRO, Reborn Cabinets, Remodel USA, and Woodbridge Home Solutions. Renovo’s owner, BlackRock TCP Capital Corp., had placed the company on “non-accrual” status in late 2024 due to declining performance, signaling deep financial trouble.
Financial Fallout and Local Response
The human and financial toll spread rapidly. Contractors reported being owed substantial sums for completed work, while vendors and suppliers faced unpaid invoices. Customers like the Frahms, who had spent years saving for home improvements, saw their investments evaporate. Jay Deems, who owned Minnesota Rusco for nearly two decades before selling to Renovo in 2022, expressed outrage: “It sickens me that a firm that manages over $3 trillion in assets would put their employees on the streets without any notice and is cancelling their insurance in three days with no chance for COBRA.” In response, TWS Remodeling’s owner offered to honor Minnesota Rusco contracts at a 50% discount, saying, “If you bring me a contract or you put a down payment down, I’m gonna take 50% off of the contract you did with them. We’re gonna do that as goodwill.” This gesture provided hope for some, but many remained in limbo.
Private Equity Strategy Unravels
Renovo Home Partners was created in 2021 by Audax Private Equity, which consolidated regional brands into a national platform aiming for economies of scale. Audax exited in 2024, leaving BlackRock TCP Capital Corp. with a deteriorating asset. The roll-up strategy, common in home services, proved difficult to execute amid rising costs and market softening. BlackRock reported significant declines in Renovo’s performance, citing integration challenges and deferred homeowner spending due to inflation. By August 2025, Renovo was again placed on non-accrual status, and the October shutdown marked a stark failure of the private equity model in home remodeling. Vince Nardo, former CEO of Reborn Cabinets, mourned the loss of his father’s 42-year legacy: “Reborn Cabinets wasn’t just a business—it was a family. The shutdown of Renovo Home Partners has left thousands of employees, customers, and vendors suddenly affected, and my heart breaks for everyone touched by this.”
Legal Uncertainty and Calls for Reform
Without a formal bankruptcy filing at the time of closure, customers and vendors faced uncertainty about recovering losses. Minnesota’s Contractor Recovery Fund offered potential compensation of up to $100,000 per claim for licensed contractor misconduct, but required prior civil judgments. The lack of a WARN notice, typically required for mass layoffs, drew scrutiny from labor advocates. Sean O’Neil of the Minnesota Department of Labor and Industry stated: “This is a blatant violation of the contractor licensing law, if accurate, what we’re hearing.” Attorney General Keith Ellison’s office encouraged affected parties to dispute credit card charges and preserve documentation. Policymakers began examining regulatory gaps that failed to protect workers and consumers. Nationally, Renovo’s shutdown affected thousands of employees across its seven brands and left countless homes unfinished, highlighting systemic risks in the consolidation of local home services.
Looking Ahead: Lessons and Implications
Minnesota Rusco’s collapse exposes the vulnerabilities of legacy businesses in an era of private equity consolidation. As financial engineering reshapes traditional industries, communities bear the consequences when strategies fail. The story raises urgent questions about oversight, accountability, and the true cost of prioritizing profits over people and craftsmanship. For Minnesota and beyond, the loss of a trusted local brand serves as a cautionary tale—and a call for stronger protections for workers, homeowners, and the institutions that anchor communities.