Hertz car rental company has filed for bankruptcy. They announced this in one press release. The main departments such as Europe, Australia and New Zealand have separate management and are separate from this bankruptcy. The bankruptcy filing is only for North America.
Due to the consequences of the corona crisis, many companies have run into financial problems, Hertz is one of them. Due to the corona crisis, almost no business trips and holidays are booked anymore, so almost no cars are rented. Many corporation revenues have fallen to rock bottom due to the corona crisis, but costs continue.
“With the seriousness of the COVID-19 impact on our business and the uncertainty about travel and when the economy will recover, we need to take further steps to weather a potentially long-term recovery. Today's action will protect the value of our business, allow it to continue our business and serve our customers, and provide the time to build a new, stronger financial foundation to successfully navigate this pandemic and to position us better for the future. We look forward to serving them now and on their future journeys, ”said Paul Stone, President and CEO of Hertz.
Hertz said in a press release that all Hertz companies worldwide, including its subsidiaries Hertz, Dollar, Thrifty, Firefly, Hertz Car Sales and Donlen, are open and serving customers. All reservations, promotional offers, vouchers and customer and loyalty programs, including reward points, will continue as usual.
They also state in this press release that their customers can count on the same high level of service and reliability, including new initiatives such as “Hertz Gold Standard Clean” decontamination protocols to provide additional safety in response to the COVID-19 pandemic.
According to various news reports, car rental company Hertz is facing a debt of no less than $ 19 billion (17,4 billion euros). Earlier in April, debtors were already deferred to Hertz by creditors for $ 400 million on lease contracts. Due to the bankruptcy of Hertz, creditors can recoup their money by selling used cars.