Largest car dealer goes bankrupt in USA


Coronavirus epidemic losses

The largest car dealer went bankrupt in the United States. Photo:

Hertz Global Holdings Inc., a car rental company, filed for bankruptcy due to the damage caused by the COVID-19 epidemic.

The car dealer also stated that the petition filed with the US bankruptcy court does not apply to other Hertz operating areas including Europe, Australia and New Zealand.

According to CNN, Hertz offices continue to operate and service customers. The service insists that it intends to remain in business, and a bankruptcy petition will allow restructuring of the debt. At the time of application, the company was in possession More than $ 1 billion in cash To maintain current activities. During the reorganization, Hertz can raise additional funds, including new borrowings. According to Reuters, in terms of sources familiar with the situation, the Hertz fleet currently has more than 500 thousand cars. The company plans to sell 30 thousand cars a month by the end of the year, which will be about $ 5 billion.

The company, which began renting cars in 1918, survived the Great Depression, World War II and several economic recessions, could not resist the Coronacris. It is noted that the company’s losses are due to quarantine restrictions, particularly the cancellation of air travel, as the company derives most of its income from renting cars at airports.

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Last year, Britain’s largest tour operator Thomas Cook, which owns airlines, hotels and resorts in 16 countries, suffered a financial slump. At the time of being declared bankrupt, the company suffered losses of over 600 thousand customers.

Read: Stay away: top 5 main signs of impending bankruptcy

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