Car rental company Hertz has gone bankrupt due to the coronavirus. Details of the company, whether the company will be resumed.
Quarantine and coronavirus have made many changes to the work of large companies. So, one such example was the Hertz company in the United States, which is engaged in car rental around the world. According to available data, the company's vehicle fleet is 568,000 vehicles and about 12,400 dealerships in different countries. The history of the Hertz company dates back to 1918, when it was founded in New York. During its long existence, Hertz survived the "Great Depression" in the United States from 1929 to 1939. During the Second World War, the production of cars and spare parts was stopped, as well as the shock of the financial and oil markets in the world. In more than 100 years of history, Hertz has not resisted COVID-19.
According to experts, Hertz's bankruptcy filing was the loudest during the quarantine. Along with the car rental company, Diamond Offshore Drilling, Neiman Marcus and others filed for bankruptcy. According to various sources, about 70% of the company's profits came from car rental around the world, usually located at airports. The ban on flights and the closure of borders, crossings between cities and other branches of movement led to a drop in demand by 94%, compared to the same period in 2019.
It's no secret that Hertz had problems even before the pandemic, in 2018. According to experts, even before the introduction of quarantine, the company's debts amounted to $ 225 million. However, in 2019, Hertz officials announced a debt cut to $ 58 million. Nevertheless, the introduction of quarantine in the first 3 months of 2020 took the company into debt to the level of $ 356 million. As of March 31, 2020, Hertz had $ 18.8 billion in debt, up $ 1.7 billion from the end of 2019. The main "black hole" was vehicles, for which payments had to be made in April.
As representatives of Hertz said, filing for bankruptcy does not mean that the company will completely suspend its work and go down in history. In the future, it is planned to stage-by-stage recovery, accumulation of funds and repayment of debts. At the same time, there will already be invaluable experience of this kind of situations. Despite all the statements, about 12,000 Hertz employees around the world received a notice of dismissal, and another 4,000 people were sent on indefinite leave at their own expense. It is possible that most of these 4 thousand people will not come back, as they have found a new job.
Car rental company Hertz has gone bankrupt due to the coronavirus. Details of the company, whether the company will be resumed.
|| rss | Quarantine and coronavirus have made many changes to the work of large companies. In more than 100 years of history, Hertz has not resisted COVID-19.
According to experts, Hertz's bankruptcy filing was the loudest during the quarantine. The ban on flights and the closure of borders, crossings between cities and other branches of movement led to a drop in demand by 94%, compared to the same period in 2019.
It's no secret that Hertz had problems even before the pandemic, in 2018. The main "black hole" was vehicles, for which payments had to be made in April.
As representatives of Hertz said, filing for bankruptcy does not mean that the company will completely suspend its work and go down in history. It is possible that most of these 4 thousand people will not come back, as they have found a new job.
