Hertz, the famous car rental company has filed for bankruptcy protection in the United States of America because its business plummeted in the recent months. The firm earns most of the revenue from offering car rental at airports. The sharp downturn in the travel scenario all over the world has heavily affected its business. It has assured that it will keep on operating while restricting the debts.
The international operations of the company in New Zealand, Australia, and Europe, along with its franchised locations in America have not been affected.
Hertz started its operations over a century back in Chicago, and had only a dozen Model T Ford cars back in that time. The company has gone from strength to strength and branched out in multiple countries from that humble beginning.
It has been reported that the company has already laid off or furloughed nearly 20,000 employees, which is about half of its workforce all over the world. The chief executive of the company resigned last week.
The company had accumulated billions of dollars in debt before the situation started worsening in the past few months. The rising tide of ride-hailing apps led to a sharp drop in the demand for care rentals.
Hertz said in a statement on Friday that the impact on the ongoing situation on travel was dramatic and sudden leading to an unexpected decline in the future bookings and revenue of the company. Though Hertz had taken immediate steps for prioritizing the safety and health of its customers and employees by eliminating all unnecessary spending and preserving liquidity, the present uncertainty over when and if the market will ever recover has led to the present decision. The company showed no signs of hopes about recovery anytime soon.