Global car rental company Hertz became the latest economic casualty of the coronavirus pandemic Friday, filing for bankruptcy in the US and Canada after more than a century in business. "The impact of COVID-19 on travel demand was sudden and dramatic, causing an abrupt decline in the Company'
1 / 2Established in 1918 with only a dozen cars, the global car rental giant had survived the Great Depression and numerous American recessions-Established in 1918 with only a dozen cars, the global car rental giant had survived the Great Depression and numerous American recessions Washington - Global car rental company Hertz became the latest economic casualty of the coronavirus pandemic Friday, filing for bankruptcy in the US and Canada after more than a century in business.
"However, 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," it said. Chapter 11 is a mechanism that allows a company that is no longer able to repay its debt to restructure itself without creditors. Hertz' franchise sites, which are not owned by the company, are also not included in the Chapter 11 proceeding.
Hertz suffered a fourth consecutive annual net loss in 2019. But 2020 had started well with an increase in turnover of six percent in January and eight percent in February compared to the same months of last year.
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