After the pandemic saw its business collapse, the car rental company Hertz has applied for bankruptcy protection in the US. The company, which earns much of its revenue from airport car rentals, said the sharp decline in global travel had affected it.
It will continue to operate while its debts restructure. The foreign operations of Hertz in Europe, Australia, and New Zealand and its franchised locations in the USA are not affected.
In reaction to the pandemic, the corporation-which began out in Chicago a century ago with a dozen Model T Ford cars-had already furloughed or laid off 20,000 employees, or about half of its global labor force. Its managing director resigned last week.
The company had accrued billions of dollars in debt before the pandemic, with the emergence of ride-hailing apps contributing to a decline in demand for car rentals.
“The Covid-19 ‘s effect on travel demand was unexpected and drastic, triggering an immediate downturn in the company’s sales and potential reservations,” Hertz said.