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Customers filing lawsuits after Minnesota Rusco closes
Customers are now facing losses and filing lawsuits after Minnesota Rusco closed suddenly. FOX 9's Karen Scullin has more.
MINNEAPOLIS (FOX 9) - Minnesota Rusco customers are grappling with unexpected financial losses after the company abruptly went out of business.
Minnesota Rusco's sudden closure
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MN Rusco bankruptcy leaves homeowners on the hook
Customers and contractors are looking for ways to recoup their losses after Minnesota Rusco filed for bankruptcy following an abrupt closure. FOX 9's Karen Scullin has the latest report.
What we know:
Steve Hall and Danny Della Lanna, who had hired Minnesota Rusco for window installations, were caught off guard when the company closed just seven days after they paid half of the $30,000 price tag. Hall said they chose Minnesota Rusco because of its long-standing reputation, "We chose them because they've been in business for 70 years, since 1955. I always see them at the home shows, so they seem reputable."
The parent company, Renovo, has filed for bankruptcy for all 19 companies it owns nationwide. Minnesota Rusco’s filings reveal assets between $1 million to $10 million, but debts ranging from $100 million to $500 million.
Della Lanna expressed frustration, saying, "They knew that they're going to be insolvent way before they took our money. And it's kind of a bummer that they went ahead, and they took it anyway."
Legal actions and financial implications
What they're saying:
Hall shared his disappointment, stating, "And they've made their money, I'm sure. And they're kind of walking away and leaving all of us and the employees and all the vendors. I mean, they did a lot of advertising. A lot of advertisers in the Twin Cities have a lot of receivables that they're never going to see either. So. And there's a lot of frustration, I'm sure, to go around right now."
Ten local lawsuits have already been filed in Minnesota, with more expected. The Minnesota Department of Labor and Industry offers a contractor recovery fund, but compensation is capped at $550,000 per contractor. Given the volume of requests, homeowners are likely to receive only a portion of what they are owed.
Hall remains cautiously optimistic about the possibility of compensation, saying, "I figure if we get anything back as a bonus, in my mind, I've written it off as a loss. And if we can get something back, I'll be thrilled. But it'll be a surprise. It'll be nice holiday gift. Yeah, it'll a pleasant surprise. Or maybe next year's holiday gift, depending on how long it takes."
What we don't know:
It's unclear how much compensation affected customers will receive from the recovery fund.
The timeline for resolving the bankruptcy and lawsuits remains uncertain.
The Source: Information from Minnesota Rusco customers and legal filings.