Car rental giant Hertz files for bankruptcy protection
Global car rental firm Hertz has announced that it and several of its US and Canadian subsidiaries have filed bankruptcy protection, due to the impact of the coronavirus pandemic.
The impact of COVID-19 on travel demand was sudden and dramatic, causing an abrupt decline in the company’s revenue and future bookings.
Hertz took immediate actions following the outbreak to eliminate all non-essential spending and preserve liquidity, however, due to the ongoing uncertainty as to when revenue will return and when the used-car market will fully re-open for sales, the company has taken action.
All of Hertz’s businesses globally, including its Hertz, Dollar, Thrifty, Firefly, Hertz Car Sales, and Donlen subsidiaries, are still open and serving customers. All reservations, promotional offers, vouchers, and customer and loyalty programs, including rewards points, are expected to continue as usual.
Hertz President and CEO Paul Stone said: “Hertz has over a century of industry leadership and we entered 2020 with strong revenue and earnings momentum.
“With the severity of the COVID-19 impact on our business, and the uncertainty of when travel and the economy will rebound, we need to take further steps to weather a potentially prolonged recovery. Today’s action will protect the value of our business, allow us to continue our operations and serve our customers, and provide the time to put in place a new, stronger financial foundation to move successfully through this pandemic and to better position us for the future. Our loyal customers have made us one of the world’s most iconic brands, and we look forward to serving them now and on their future journeys.”