Benzinga | Jun 17, 2021 06:39AM EDT

U-Haul Co. of West Virginia Late Yesterday Announced It Has Filed For Voluntary Chapter 11 Protection In The U.S. Bankruptcy Court

U-Haul Co. of West Virginia (the "Company") today announced it has filed for voluntary Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of West Virginia. The Company serves do-it-yourself moving and self-storage customers in West Virginia and small parts of Kentucky, Virginia and Ohio. The Company, which was incorporated in West Virginia in 1970 and has operated continuously in the state for the last 52 years, 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.

The Company plans to continue business without interruption, and U-Haul customers are not expected to be impacted by this 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. Twelve Company-operated stores and 123 independent U-Haul dealers in West Virginia will continue to offer affordable and accessible mobility to U-Haul customers.

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