Sirva Files for Bankruptcy
Moving company Sirva Inc. filed a Chapter 11 bankruptcy petition Tuesday along with 58 affiliates, Bloomberg reported.
The so-called prepackaged petition was accompanied by a Chapter 11 plan and disclosure statement, and creditors representing about 95% of the company’s affected debt accepted the plan, Bloomberg said.
Sirva blamed its financial problems on the decline in the housing market, saying that Americans are “not moving as much,” Bloomberg reported.
The petition listed assets of $924 million and debt totaling $1.23 billion. Sirva said the reorganization will reduce its debt by $200 million while lowering interest costs by $54 million annually, Bloomberg reported.
Sirva, the parent company of Allied Van Lines and North American Van Lines, is ranked No. 22 on the Transport Topics 100 list of U.S. and Canadian for-hire carriers.
