Hertz largest car rental service announced bankruptcy

US, WASHINGTON (ORDO NEWS) — One of the world’s largest car rental services Hertz filed for bankruptcy, CNN reports.

The company has become another victim of the economic downturn caused by the coronavirus pandemic.

Hertz offices continue to operate and serve customers. The service emphasizes that it intends to remain in business, and a bankruptcy petition will allow restructuring of debts.

In a statement, the company emphasizes that the impact of COVID-19 on travel and car rental demand was too sharp, causing revenue to collapse. In addition to tourists, service customers are often people whose cars are under repair. But because of COVID-19, many remain at home and they simply don’t need cars. Hertz admits that they do not know when these figures will return to their previous level and when the used car market will recover.

CNN notes that the bankruptcy of Hertz is probably the most resonant in the era of COVID-19. Earlier in the USA, well-known clothing sellers JCPenney, Neiman Marcus and J.Crew, as well as energy companies Whiting Petroleum and Diamond Offshore Drilling, were forced to declare bankruptcy.

But none of them occupied such a huge share of their market as Hertz, which along with Avis, Budget (CAR) and private Enterprise dominate the car rental market. Hertz has about 568 thousand cars worldwide and approximately 12.4 thousand rental points (including a franchise).

Hertz rental service was founded in 1918 in the United States and began its work with a dozen Fords. He survived the Great Depression, an almost complete halt to automobile production in the United States during World War II, and several oil crises.

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