Car Rental Company Hertz Files For Bankruptcy

TOPLINE

Hertz, one of the largest car rental companies in the U.S., filed for bankruptcy Friday after the coronavirus devastated its business, making it another major company that has filed for bankruptcy amid the pandemic.

KEY FACTS

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“With the severity of the COVID-19 impact on our business, and the uncertainty of when travel and the economy will rebound, we need to take further steps to weather a potentially prolonged recovery,” Hertz President and CEO Paul Stone said in a statement. “Today’s action will protect the value of our business, allow us to continue our operations and serve our customers, and provide the time to put in place a new, stronger financial foundation to move successfully through this pandemic and to better position us for the future.”

NEWS PEG

 Companies in transportation business are in dire financial straits. Hertz competitor Avis as well as ride-hailing giants Uber and Lyft have had to lay off thousands of workers to keep afloat. Retailers JC Penny and Neiman Marcus also filed for bankruptcy in recent weeks because of the coronavirus. 

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