Hertz Files for Bankruptcy

After more than 100 years in business, Hertz filed for bankruptcy Friday night, the latest victim of the sudden economic downturn sparked by the Coronavirus pandemic.

“The impact of Covid-19 on travel demand was sudden and dramatic, causing an abrupt decline in the company’s revenue and future bookings,” said the company’s statement. It said while it too immediate action in response to the crisis, “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 company, which has a branch at 2070 East Colorado Blvd., has been renting cars since 1918, when it set up shop with a dozen Ford Model Ts.

Hertz survived the Great Depression, the virtual halt of US auto production during World War II and numerous oil price shocks, but it may not survive the pandemic.

The company has roughly 38,000 employees worldwide and is $19 billion of debt, according to news network CAN.

Hertz is among the largest companies forced to file bankruptcy

by the pandemic. The public health crisis has decimated companies dependent on consumer demand, including retailers, restaurants and oil and gas firms.

None of the companies to file so far have been as big an industry leader as Hertz.

The company dominates the rental car business along with Avis Budget and privately held Enterprise dominate the rental car industry.

But if no one is traveling, no one is renting cars. Most of Hertz revenue comes from rentals at airport locations.

Since the start of April, the number of people passing through TSA checkpoints at US airports has plummeted 94 percent compared with a year ago.