Herc : Hertz files for bankruptcy after demand drops due to COVID-19
The company announced in a statement Friday that it has filed voluntary petitions for reorganization under Chapter 11, along with some of its
"The impact of COVID-19 on travel demand was sudden and dramatic, causing an abrupt decline in the company's revenue and future bookings," the company said in a statement. "
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.
The company said that as of the filing date, it had more than
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