Corona continues to charge financial victims • Company applied for US proceeding after virus spread caused severe losses
Rental giant "Hertz" declares bankruptcy // Archive photo: Reuters
The economic implications of the Corona virus: Hertz International car rental company filed for bankruptcy proceedings in the United States yesterday after suffering many debts and losses following the virus.
The company that earns a large portion of its revenue from rental cars at airports around the world said that the closure of the airports and restrictions on social remoteness had a major impact on it, and it will continue to operate in a new format to reduce the debt created.
But the company claims that the company's international operations mainly in European countries, Australia, New Zealand and the United States franchisees have not been much affected by Corona.
Founded 100 years ago in Chicago, the company has laid off some 20,000 employees since the beginning of the crisis, as well as about half the workforce worldwide. This coincided with the resignation of the company's CEO last week.
Prior to the Corona eruption, the company accrued billions of dollars in debt as a result of the acceleration of the apps that made it possible to order or rent cars, which led to a fall in demand.
"The impact of the Corona on travel demand was sudden and dramatic, causing a significant drop in company revenue and future bookings," the company said, adding that "they have taken immediate action to maintain the health of employees and customers."
It was also said that uncertainty over whether and when the car rental market would recover led to the decision to declare bankruptcy.