Business Hertz: Car rental company insolvent due to Corona crisis

Hertz: Car rental company insolvent due to Corona crisis

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The car rental company Hertz has filed for bankruptcy in the US corona crisis. The decrease in travel has resulted in a “sudden and dramatic” drop in sales and bookings, the company based in Estero, Florida, said.

Business would continue while the restructuring was required in the wake of the crisis, the release said. The company has more than $ 1 billion in cash to keep operations running. The branches of the car rental company in Europe, Australia or New Zealand are not affected by the bankruptcy application.

The communication goes on to say that Hertz had already initiated measures when the crisis emerged in March. At that time it was decided to leave or lay off 20,000 employees worldwide – about half of all employees. The number of vehicles and locations will be reduced.

Nevertheless, the intention is to continue to offer customers the same quality and to pay suppliers and employees. Loyalty programs should also continue.

The list of traditional bankrupt companies is getting longer

Hertz is one of the largest rental car companies worldwide and also rents vehicles under the company names Dollar and Thrifty. Hertz said that the group could not agree on a long-term reduction in payments with its largest creditors. Hopes for support from the US government for car rental companies have also been dashed.

The crisis has severely affected the US economy. Just about a week ago, the 118-year-old J.C. Penney filed for bankruptcy. The chain stores Neiman Marcus and J. Crew had previously filed for bankruptcy. For J.C. Penney currently employs approximately 85,000 people in more than 800 stores, many of which are at the heart of American shopping centers.

Since the worsening of the coronavirus pandemic in the United States in March, more than 38 million people have lost their jobs at least temporarily – more than ever before in such a short time. The United States is in a severe economic crisis because of the pandemic.

President Donald Trump is urging the US states to loosen protective measures as quickly as possible in order to get the economy going again before the presidential election in November.

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