Car rental company Hertz declares Chapter 11 bankruptcy as a result of Covid-19 business disruptions.
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Hertz Files Chapter 11 Bankruptcy
On Friday, May 22, Hertz Global Holdings filed Chapter 11 Bankruptcy, citing the impact of COVID-19 and plummeting revenues.
Late Friday night, Hertz announced a voluntary Chapter 11 bankruptcy and reorganization. The company expects to continue operations and all existing loyalty programs.
In their press release Hertz highlights:
As an Essential Business, Hertz and Subsidiaries Around the World Remain Open with Same Award-Winning Service for Customers
All Customer and Loyalty Programs Expected to Continue as Usual
$1 Billion in Cash on Hand to Support Continuing Operations
Hertz reiterates that all global Hertz businesses, including its Hertz, Dollar, Thrifty, Firefly, Hertz Car Sales, and Donlen subsidiaries,are open and serving customers.
"Hertz has over a century of industry leadership and we entered 2020 with strong revenue and earnings momentum," said Hertz President and CEO Paul Stone:
"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. Today's action will protect the value of our business, allow us to continue our operations and serve our customers, and provide the time to put in place a new, stronger financial foundation to move successfully through this pandemic and to better position us for the future. Our loyal customers have made us one of the world's most iconic brands, and we look forward to serving them now and on their future journeys."
Click here to read the full press release from Hertz.
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