InvestorQ : Why has Hertz Rent a Car filed for bankruptcy?
Rutuja Nigam made post

Why has Hertz Rent a Car filed for bankruptcy?

Arti Chavan answered.
1 year ago

Hertz Global filed for bankruptcy protection after its business was badly destroyed during the Coronavirus pandemic. Subsequent attempts at a rescue and talks with creditors failed to result in any relief forcing the 100-year old company into bankruptcy. It will now seek Chapter-11 protection. Hertz also operates internationally in Europe and Australia. Iconic investor, Carl Icahn, holds 39% in Hertz. The car rental company took on the chin after government orders restricting travel and requiring citizens to remain home. A chunk of Hertz's revenue comes from car rentals at airports which have evaporated. With $19 billion in debt and 38,000 employees globally, Hertz is one of the high profile bankruptcies during the COVID-19 pandemic. Hertz also tried for government funding but to no avail. Currently, Hertz has about $1 billion of cash but has a fleet of more than 500,000 vehicles to service. The pandemic was more of a trigger as Hertz was already under pressure from ride-hailing services like Uber.