Car Rental Company Hertz Files For Bankruptcy In Canada And US

Posted by: lukwago J in world news May 23, 2020

The American car-rental company Hertz corporation which has been hit hard by covid-19 pandemic on Friday finally declared bankruptcy in both Canada and United States.

In an official statement, hertz said that the impact of coronavirus on travel demand was unexpected and dramatic, causing a sudden decline in the company’s revenue and future bookings.

We immediately prioritized the safety and health of our employees as well as for our clients and decided to get rid of all unnecessary spending, ‘Hertz said.

The company however said that they are not certain as to when revenue will come back and when the used car market will fully open again.

The car rental company did not include some of it’s operating regions such as New Zealand, Europe and Australia in the Chapter 11 filing.

It has laid off 26.3 percent of it’s workforce globally, 10,000 jobs were cut in North America alone on 21^st April 2020 to save money after covid-19 closure disabled travel and badly affected the economy.

Chapter 11 is a system that allows companies that are no longer able to clear debts to restructure without creditors.

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