Hertz Files For Bankruptcy, Raises Fears It May Flood Market With Hundreds Of Thousands Of Used Cars - CarScoops

The bankruptcy filing is intended to allow for a “financial reorganization” of Hertz as well as subsidiaries such as Dollar, Thrifty and Firefly.

Hertz said their ultimate goal is to provide 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.”.

Despite the bankruptcy filing, it’s business as usual as Hertz and its subsidiaries remain open.

In the bankruptcy announcement, 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.” The company went on to say they took immediate action in response to the pandemic and eliminated all non-essential spending as prioritized the health and safety of its customers and employees.

It remains unclear how the bankruptcy will pan out, but there have been fears the rental company could liquidate part of its fleet of roughly 570,000 vehicles.