Rental provider Hertz has filed for bankruptcy in the USA and Canada following losses during the Coronavirus pandemic.
The business lost all its revenue and amassed debts of more than £15bn, with the majority of its branches closed for the last eight weeks.
It has cut 12,000 jobs worldwide and put 4,000 workers on furlough.
A statement issued by Hertz said: “The impact of COVID-19 on travel demand was sudden and dramatic, causing an abrupt decline in the company's revenue and future bookings.
“Hertz took immediate actions to prioritize the health and safety of employees and customers, eliminate all non-essential spending and preserve liquidity. However, uncertainty remains as to when revenue will return and when the used-car market will fully re-open for sales, which necessitated today's action.
“The financial reorganization 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 company has filed for a Chapter 11 restructure, which means its creditors will have to accept less than full repayment of its debts.
Hertz said all its businesses globally, including its Hertz, Dollar, Thrifty, Firefly, Hertz Car Sales, and Donlen subsidiaries, are open and serving customers. All reservations, promotional offers, vouchers, and customer and loyalty programs, including rewards points, are expected to continue as usual.
President and CEO Paul Stone, added: "Today's action will protect the value of our business, allow us to continue our operations and serve our customers, and provide the time to put in place a new, stronger financial foundation to move successfully through this pandemic and to better position us for the future. Our loyal customers have made us one of the world's most iconic brands, and we look forward to serving them now and on their future journeys."
*Article Source https://www.hertz.co.uk/