The company has been renting cars since 1918, when it set up shop with a dozen Ford Model Ts, and has survived the Great Depression, the virtual halt of US auto production during World War II and numerous oil price shocks. By declaring bankruptcy, Hertz says it intends to stay in business while restructuring its debts and emerging a financially healthier company.
“The impact of Covid-19 on travel demand was sudden and dramatic, causing an abrupt decline in the company’s revenue and future bookings,” said the company’s statement. It said while it too immediate action in response to the crisis, “uncertainty remains as to when revenue will return and when the used-car market will fully re-open for sales, which necessitated today’s action.”
Hertz said the bankruptcy process will give it “a more robust financial structure that best positions the company for the future as it navigates what could be a prolonged travel and overall global economic recovery.”
Deep cuts already in place
The company rents cars under the brands Hertz, Dollar, Thrifty and Firefly, a discount brand outside the United States.
The company has already made deep cuts to stem its losses. It…
Read more: Hertz files for bankruptcy – CNN