Bonita Springs, Florida (UPI/CTV/CNN) – There was a time when there was a Hertz rent a car at every airport and in many cities and towns, a small downtown lot.
Now, Hertz is another victim of COVID-19.
Hertz Global Holdings has filed for bankruptcy following a sharp drop in travel because of the coronavirus pandemic.
The company announced in a statement Friday that it has filed voluntary petitions for reorganization under Chapter 11, along with some of its U.S. and Canadian subsidiaries.
The company said that it has taken steps to reduce unnecessary spending, but it’s unclear when it will recover, so the filing was needed “to strengthen capital structure.”
Among the steps the company took to mitigate revenue loss from car rental cancellations, it reduced planned fleet levels, consolidated off-airport rental locations, deferred capital expenditures, and implemented furloughs and layoffs of 20,000 employees, or approximately half of its global workforce.
Hertz, Dollar, Thrifty, Firefly, Hertz Car Sales, and Donlen subsidiaries are still open, the statement said.
The company said that as of the filing date, it had more than $1 billion in cash in hand for operations.
Hertz’s principal international operating regions such as Europe, Australia and New Zealand were not included in Friday’s U.S. Chapter 11 proceedings.