100-Year-Old Car Rental Company Hertz Files For Bankruptcy
Hertz, a global car rental company that’s over 100 years old, filed for bankruptcy protection on Friday (May 22), ostensibly due to the effects of the coronavirus pandemic. It’s the latest large-scale company the virus has taken down in recent weeks.
The Wall Street Journal was the first to report that the American company had debts amounting to $19 billion and had nearly 700,000 vehicles all over the world that were barely in use because of the pandemic.
The company has been losing money for years as it faced competition from ride-hailing businesses like Uber and Lyft as well as from other car rental agencies like Avis. In 2019, it reported losses amounting to $58 million
In an SEC filing last April, Hertz announced that it had laid off approximately 10,000 employees. Another filing also announced the resignation of its CEO, Kathryn Marinello, last week.
Hertz was founded in Chicago, Illois in 1918. As of March 2019, it had 9,700 corprate and franchise locations in 150 countries worldwide, including the Philippines.
Hertz Philippines (Exclusive Cars International Holdings Inc) has issued a statement acknowledging Hertz USA’s bankruptcy filing and said its operations in the country will not be affected.
“We are business as usual,” it said.