US Car Rental Giant Hertz Announces Bankruptcy
Hertz, an American car rental and sales company with many dealers around the world, is in the last resort of the economic difficulties caused by the coronavirus epidemic.
Hertz, an American car rental and sales company with many dealers around the world, is in the last resort of the economic difficulties caused by the coronavirus epidemic.
American car rental and sales company with many dealers around the world Hertz, coronavirus became the last victim of the economic difficulties brought by the epidemic. Hertz, which purchased 1.7 million vehicles last year alone, corresponding to 10% of the American automobile industry, was providing car rental services to many large companies. After Hertz declared bankruptcy fiat And ford Car manufacturers such as have begun to worry that their sales will decrease in the coming years. After this development, it becomes clear how greatly the American economy has been affected by the coronavirus epidemic.
At the beginning of this year, Hertz had 568,000 vehicles parked in 12,400 locations around the world, and the company was valued at approximately $9.8 billion. But CNN According to reports, the company had only $1 billion in hand in March, while its debts had increased to $19 billion. In addition, 12,000 of the company's 38,000 employees were laid off, while 4,000 employees were given unpaid leave. Hertz, which met with the relevant institutions in April to ask for a loan, officially announced its bankruptcy yesterday, May 22.
Hertz's shares are down 82% and continuing to fall
Hertz CEO Paul Stone, in his last statement “COVID-19 "We must take some steps considering that our company will have a long recovery period due to the challenging effects of the epidemic on our business and the uncertainty of when the economy and travel will recover again." He included his statements. Following this interview, the shares of the company, which went bankrupt shortly after, fell 82% in value and are still falling.
However, the bankruptcy of the company does not mean that it has completely withdrawn from the business world. This bankruptcy is seen more as a restructuring process. Hertz first started this process in March with the 54,000 vehicles they disposed of. However, due to the ban on car auctions and the closure of many car dealerships due to the coronavirus, the company could not get any relief by taking away more vehicles. In addition, Hertz will continue to serve customers who are currently under contract.
Every business is unique. Let’s explore how we can tailor these ideas to your own digital project.
