The company recently announced that it and some of its U.S. and Canadian subsidiaries have filed voluntary petitions for reorganization under Chapter 11 in the U.S. Bankruptcy Court after the pandemic caused an abrupt decline in its revenue and future bookings.
Hertz has around $19 billion (R340 billion) in debt, which includes roughly $4.3 billion in corporate bonds and loans as well as $14.4 billion of debt backed by the company's fleet of vehicles, and lenders had asked the company for upfront payment on some of those obligations but couldn't get it to agree, according to The Journal. In what company officials called part of an "ongoing succession planning process", it named Paul Stone, an executive vice president and head of North American retail operations, president and CEO. Marinello will stay on with Hertz for a year in a consulting role. The bankruptcy also doesn't impact its principal global operating regions including Europe, Australia and New Zealand.
The firm was £15.3bn in debt at the end of March with only £820m of available cash.
A global vehicle rental firm which has branches in Norfolk has filed for bankruptcy due to debt and the halt put on world travel following the coronavirus outbreak, it has emerged.
A Hertz car rental is closed during the coronavirus pandemic in Paramus New Jersey
The company - which began operating a century ago in Chicago with a dozen Model T Ford cars - had already furloughed or laid off 20,000 employees, or around half of its global workforce, in response to the pandemic. That's double the amount of employees it said it had let go as of another statement April 22.
However, tides have turned and the Florida-based vehicle rental company has filed for bankruptcy in DE, as reported by Automotive News.
Hertz closed most of it's United Kingdom and Irish branches when COVID-19 outbreak began.
Hertz is just the latest high-profile company to feel the financial pain of the COVID-19 crisis: Retailers J.C. Penney, J. But while it managed to negotiate a short-term reprieve from creditors, it wasn't able to work out longer-term agreements.