Hertz Global Holdings has applied for financial assistance to protect businesses from the COVID-19 negative effects. It happened on Friday 22 May. As a reminder, it is one of the oldest car rental companies in the United States, founded in 1918 by Walter Jacobs.
Only the American office of the company requests assistance. Also, the brand exists in New Zealand and Australia. Their request is pending in the state of Delaware in company bankruptcy cases. Hertz Global Holdings’ problems began earlier due to the increasing competition in the market. By the end of 2019, they had a debt of about $ 20 billion, and it continued to grow. The pandemic destroys almost all the chances of the company to live.
The reason for the problem is that the main focus of the work was car rental at airports throughout the country. Airplanes are almost not flying at the moment, and there is almost no demand for rental cars. Earlier this month, the company laid off up to 10,000 employees nationwide and implemented a number of executive changes.
Financial assistance from the state was the only chance of salvation because private sources were unable to finance Hertz Global Holdings. The situation has not developed yet.