5-speed listening (Bankruptcy - Level 4)

Car rental group Hertz files for bankruptcy






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Hertz has filed for bankruptcy protection. The world's second largest car rental company has 10,200 franchises worldwide. It is one of the biggest companies to file for bankruptcy during COVID-19. It has furloughed about half of its global workforce after rentals dried up. It said: "The impact of the pandemic on travel demand was sudden and dramatic, causing an abrupt decline in...revenue and future bookings." Hertz has over $18 billion of debt on its books.

Hertz started in 1923 when John Hertz pioneered a "drive yourself" system. He started with 12 Model T Ford cars. His mission was, "to be the most customer-focused, cost-efficient vehicle...rental company." CNN said the pandemic has hurt the car rental industry. It said, "rentals have been "devastated by the plunge in travel since the pandemic hit". It said nearly two-thirds of revenue comes from rentals at airport locations and that air travel has "fallen sharply".

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