Rental automobile firm Hertz filed for Chapter 11 chapter safety Friday, citing losses attributable to the coronavirus pandemic.
Hertz joins different massive American corporations in submitting for COVID-19 associated chapter actions, together with J.C. Penney and Neiman Marcus. No Hertz places within the U.S. are anticipated to shut, together with subsidiaries reminiscent of Dollar, Thrifty and Hertz Car Sales.
“With the severity of the COVID-19 impact on our business, and the uncertainty of when travel and the economy will rebound, we need to take further steps to weather a potentially prolonged recovery,” stated Hertz President and CEO Paul Stone in a press release Friday.
Hertz’s assertion referred to the impact of coronavirus on the journey business as “sudden and dramatic.”
Newsweek reached out to Hertz for additional remark. This story will likely be up to date with any response.
Much of Hertz’s enterprise got here from places in airports, however orders issued by state governments for Americans to remain at house through the coronavirus pandemic considerably diminished air journey.
Before the pandemic, Hertz reported complete revenues of $9.eight billion for 2019, which represented a rise of three % over 2018. In March 2020, nevertheless, Hertz started shedding staff in an try to economize after lacking lease funds on its rental automobile fleet.
This is a breaking story and will likely be up to date.