Car rental giant Hertz declares bankruptcy

Hertz declares bankruptcy in the United States and Canada. The American car rental company, more than a hundred years old and known worldwide, placed itself this Friday, May 22, under the American bankruptcy regime, decimated by the Covid-19 pandemic. For the moment, this procedure only concerns its operations in the United States and Canada, said the emblematic group in a press release. It thus spares its main operational regions, notably Europe, Australia and New Zealand.

“The impact of Covid-19 on travel demand has been sudden and dramatic, resulting in a sharp drop in company revenues and future bookings,” said the group. Hertz says it has taken “immediate action” that prioritizes the health and safety of employees and its customers. It also eliminated “all non-essential expenses”. “However, uncertainty remains as to the return of income and the complete reopening of the market (…) which necessitated today’s action,” he adds.

20,000 dismissed people in total

On April 21, Hertz had already announced that it would cut 10,000 jobs in North America, or 26.3% of its global workforce, to save money in the face of uncertainties caused by measures to stem the pandemic. On Friday, the group said that it is even 20,000 people in total who were laid off, about half of its global workforce. In the United States, recourse to Chapter 11 is a device that allows a company that can no longer repay its debt to restructure away from creditors.

>> Read also – Hertz, the car rental giant, about to go bankrupt?

Hertz did not mention the amount of its debt, but the Wall Street Journal reported on Friday a debt of about $ 19 billion and nearly 700,000 vehicles largely unused because of the coronavirus. “The financial reorganization will provide Hertz with a path to

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