"Hertz Global Holdings, Inc. (NYSE: HTZ) ("Hertz" or the "Company") today announced it and certain of its U.S. and Canadian subsidiaries have filed voluntary petitions for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware. The impact of COVID-19 on travel demand was sudden and dramatic, causing an abrupt decline in the Company's revenue and future bookings", the press release, issued on Friday, said.
According to Hertz, when the pandemic broke out, the company took immediate actions to ensure its employees' and customers' health and eliminate all non-essential expenses. However, Hertz decided to file for bankruptcy, as it is still unknown when the used-car market will fully re-open and the company's revenue will restore to previous levels.
"The financial reorganisation will provide Hertz a path toward a more robust financial structure that best positions the Company for the future as it navigates what could be a prolonged travel and overall global economic recovery", the press release added.
At the same time, the company noted that all its subsidiaries globally remained open and continued serving customers while providing additional safety in response to the COVID-19 pandemic.