Sadly, there is yet another company that has declared bankruptcy! Hertz has recently announced that they have filed due to the sudden economic downturn from the pandemic. They are hoping to be able to restructure their debt and survive this trying time.
As part of their statement on their bankruptcy, Hertz has said:
“The impact of COVID-19 on travel demand was sudden and dramatic, causing an abrupt decline in the Company’s revenue and future bookings. Hertz took immediate actions to prioritize the health and safety of employees and customers, eliminate all non-essential spending and preserve liquidity. However, uncertainty remains as to when revenue will return and when the used-car market will fully re-open for sales, which necessitated today’s action. The financial reorganization will provide Hertz a path toward a more robust financial structure that best positions the Company for the future as it navigates what could be a prolonged travel and overall global economic recovery.”
The company has said that they were financially strong and growing before the COVID-19 pandemic, but the sudden decline in travel caused a dramatic reduction in the company’s revenue and future bookings.