The United States economy is badly damaged due to the Coronavirus pandemic that has millions of unemployed people. Those affected continue to appear and the car rental company “Hertz” announced on Friday, May 22 that it is in bankruptcy.ota, this because they could not reach an agreement with their main creditors.
Through a press release, Hertz noted that the main havoc has been caused at its subsidiaries in Canada and the United States, but luckily Europe and Oceania will not be affected, in this last category those that operate as franchises are also included.
“The impact of COVID-19 on travel demand was sudden and dramatic, causing an abrupt decline in company revenue and future bookings.”, the company reported, which will remain open to the public while it is undergoing restructuring.
Hertz explained that the pandemic complicated the problems they were already having after restrictions on air and land traffic affected the car rental market. The company has a debt of 19 million dollars, which are divided into 4.3 billion in corporate bonds and loans and 14,400 in vehicle debt.
Companies that have filed for bankruptcy
Hertz is not the only company that has gone bankrupt after the economic crisis caused by the pathogen, but other retailers such as JCPenney, Neiman Marcus and J.Crew, in addition to the oil companies Whiting Petroleum and Diamond Offshore Drilling.