Hertz: Automotive rental agency information for US chapter safety

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Automotive rental firm Hertz has filed for chapter safety within the US after the pandemic noticed its enterprise plummet.

The agency, which earns a lot of its revenue from automotive leases at airports, mentioned it had been affected by the sharp downturn in world journey.

It’ll proceed to function whereas restructuring its money owed.

Hertz’s worldwide operations in Europe, Australia and New Zealand in addition to its franchised areas within the US are usually not affected.

The corporate – which started working a century in the past in Chicago with a dozen Mannequin T Ford automobiles – had already furloughed or laid off 20,000 staff, or round half of its world workforce, in response to the pandemic.

Its chief govt resigned final week.

Earlier than the pandemic the corporate had amassed billions of {dollars} in debt, with the rise of ride-hailing apps resulting in a drop in demand for automotive leases.

“The affect of Covid-19 on journey demand was sudden and dramatic, inflicting an abrupt decline within the firm’s income and future bookings,” Hertz mentioned on Friday.

Whereas it had taken “fast actions to prioritize the well being and security of staff and prospects, remove all non-essential spending and protect liquidity”, the uncertainty over if and when the market would recuperate led to its resolution, it mentioned.

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