diff --git a/overlay/usr/libexec/init-storage b/overlay/usr/libexec/init-storage
index eb87e4f..963b74e 100755
--- a/overlay/usr/libexec/init-storage
+++ b/overlay/usr/libexec/init-storage
@@ -136,6 +136,11 @@ setup_etc() {
         while read type path; do
             if [ ! -e "${tmpdir}/${path}" ]; then
                 if [ -e /etc/"${path}" ]; then
+                    case "${path}" in
+                    */*)
+                        mkdir -p "${tmpdir}/${path%/*}"
+                        ;;
+                    esac
                     cp -ca /etc/"${path}" "${tmpdir}/${path}"
                 elif [ "${type}" = d ]; then
                     mkdir -p "${tmpdir}/${path}"