One of the largest car rental Hertz reduces costs – the organization filed for bankruptcy because of the crisis associated with the pandemic COVID-19. A statement posted on the website of the company.
“Hertz Global Holdings today announced that it and several of its canadian and U.S. subsidiaries voluntarily filed a petition for reorganization under Chapter 11 of the code in the U.S. court of bankruptcy for the district of Delaware,” – said in a statement.
it notes that the impact of COVID-19 on the demand for travel “was sudden and dramatic, which caused a sharp decline in the company’s revenues and future orders.” Although the company has taken all possible measures to conserve liquidity, the report says Hertz, uncertainty regarding return to their previous level of revenue and the restoration of the market of used cars demanded from the company the restructuring of existing assets.
“the Financial restructuring will provide Hertz path to more robust financial structure that best positions the company in the future, because it focuses on what can be a lengthy journey, and the General global economic recovery”, – explained in a statement.
it also States that all subsidiaries of Hertz are open and continue to perform their obligations to customers. “The company intends to continue to provide the same quality and selection of vehicles; pay suppliers for goods and services received at the date of filing (in the court of bankruptcy – note “RG”)and or after it; paying its employees in the usual manner; and also to continue the program of loyalty of clients”, – underline in the company.
At the moment website of the Russian office of Hertz is in normal mode.