Hertz, the largest US car rental company, has filed for bankruptcy. The company was founded already in 1918. For a hundred years, Hertz has coped with the Great Depression, the cessation of car production during World War II, as well as with a series of oil crises. However, the company has failed to deal with the pandemic. The economic downturn caused by the general quarantine has turned out to be stronger.
It should be noted that Hertz offices did not close. The company’s management explains the bankruptcy as the need for debt restructuring.
The representatives of the company have explained that the pandemic caused too much influence on the car rental market, which reduced the revenue to catastrophic lows. Hertz has no comments on the exact time of the market recovery.
Journalists believe that the company’s failure is the most resonant bankrupting of the coronavirus era. By the way, retailers such as JCPenney, Neiman Marcus and J.Crew, as well as energy companies Whiting Petroleum and Diamond Offshore Drilling have filed for bankruptcy too. However, none of them occupied such a large share of their market as Hertz.
Hertz is a leader in the car rental market; the corporation has a total vehicle fleet of 568 thousand cars, and approximately 12.4 thousand offices operate worldwide.
The material was prepared with the participation of Katya Wilson,
a leading analyst of the brokerage company UFT Group