U-Haul Co. of West Virginia files for Chapter 11 bankruptcy, negotiates restructuring

By Sarah Lizee

Olympia, Wash., June 17 – U-Haul Co. of West Virginia filed for voluntary Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of West Virginia on Wednesday, according to a press release.

The company said it has faced numerous challenges in recent years, including management turnover, a lack of sufficient self-storage locations, and burdensome litigation costs resulting in declining cash flow and liquidity.

U-Haul said it plans to continue business without interruption, and its customers are not expected to be impacted by the action.

The company has filed motions with the bankruptcy court seeking to continue operations in the ordinary course, including meeting commitments to customers, paying team members and continuing existing employee benefit programs.

“The Chapter 11 filing and anticipated restructuring transaction are the final steps in the company's internal restructuring that began in 2020 with a renewed commitment to expanding company locations in West Virginia, and the appointment of Mark Arnold as president to lead the company into the future,” the company said in the release.

“Earlier attempts to implement a business and financial reorganization were interrupted by the unprecedented Covid-19 global pandemic that hit early in 2020.”

The company and U-Haul International, Inc. are negotiating the terms of a plan of reorganization that is expected to include a substantial new value capital infusion by U-Haul International.

In its petition, the company listed $1.06 million in assets and $118.63 million in liabilities.

No creditors were listed with unsecured claims of $1 million or more.

The company serves do-it-yourself moving and self-storage customers in West Virginia and small parts of Kentucky, Virginia, and Ohio. It filed bankruptcy under Chapter 11 case number 21-20140.

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