Hertz, one of the world’s largest vehicle-rental companies, has sought bankruptcy protection after business nosedived as a result of the Covid-19 pandemic severely impacting demand.

Corporations worldwide have struggled to stay afloat during the health crisis. The company announced on Friday that it had filed for bankruptcy protection in the United States while it restructures its debts. The car rental service will continue its global operations, which span from the US to New Zealand. 

Explaining the decision, Hertz said in a press release that “the impact of Covid-19 on travel demand was sudden and dramatic, causing an abrupt decline in the company’s revenue and future bookings.”

It stressed that it took “immediate actions to prioritize the health and safety of employees and customers,” but that “uncertainty remains” about the car rental market.

The car rental giant expressed hope that financial restructuring will allow it to better navigate the precarious future of international travel, which has all but vanished after countries sealed their borders and imposed quarantines for visitors following the coronavirus outbreak.

Hertz was founded more than 100 years ago in Chicago, and quickly became a popular transportation provider among tourists and businesspersons alike.

The company isn’t alone in feeling the financial sting of the last two months. According to the American Bankruptcy Institute, there were 560 commercial Chapter 11 filings in April, a 26 percent increase from the previous year.

Big-name corporations such as Neiman Marcus and J. Crew are among the victims, with airlines and other services connected to travel and tourism facing similar fates.

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