The economic solvency of the school became a problem in the 1920s, and the trustees were forced to declare bankruptcy in 1926. The school's treasurer, T. W. Willingham, purchased the school back at an auction and was elected president. In 1939, the main building on campus was destroyed by fire. This prompted the school to look for a new location. Under President A.L. Parrott, the school moved in 1940, onto the previous campus of St. Viator's College. With the move, the school's name was changed to Olivet Nazarene College (ONC). The school's name was changed again in 1986 to Olivet Nazarene University (ONU).