Associated Press: Bankruptcy Filed by Rental Car Giant Hertz Due to Coronavirus Pandemic
Rental car giant Hertz filed for bankruptcy protection Friday according to Associated Press .
AP Writer Tom Krisher said the pioneer in car rentals was unable to withstand the coronavirus pandemic that has crippled global travel and with it, the heavily indebted 102-year-old car rental company's business.
"The Estero, Florida-based company's lenders were unwilling to grant it another extension on its auto lease debt payments past a Friday deadline, triggering the filing in U.S. Bankruptcy Court in Delaware," AP writer Krisher said.
In a statement released by Hertz will continue to operate, and franchised locations are not included in the filing.
Krisher said a bankruptcy filing showed that the rental car company racked up more than $24 billion in debt, with only $1 billion of available cash.
At the beginning of the coronavirus pandemic, Krisher said Hertz eliminated 12,000 workers and put another 4,000 on furlough, cut vehicle acquisitions by 90% and stopped all nonessential spending. The move was to save the company $2.5 billion per year.
Hertz has about 50 locations around NJ and also owns Dollar and Thrifty Automotive Group—which separates into Thrifty Car Rental and Dollar Rent A Car, according to company officials.