Hertz is the latest victim of the economic downturn amid the coronavirus pandemic.
Rental car firm Hertz Global Holdings Inc. filed for bankruptcy protection on Friday after the board approved the company seeking Chapter 11 protection, according to court records, per Reuters.
The company, established in 1918, is one of the largest car rental companies, and CNN notes it even survived the Great Depression.
"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 said in a statement.
The proceedings only specify U.S. locations and not operating regions in Europe, Australia, or New Zealand.
Hertz said the bankruptcy process will give it "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."
Hertz’s business, which largely relies on car rentals, has taken a hit as air travel dwindled in the wake of the outbreak with many state’s imposing stay-at-home orders to prevent spread.
According to Reuters, Hertz has nearly $19 billion in debt with 38,000 employees worldwide.
The publication notes that Hertz proposed to sell 30,000 cars a month from its more than 500,000 fleet “in an attempt to appease creditors holding asset-backed securities” that help finance the vehicles.
Hertz isn’t the only company struggling to stay afloat. Many companies and businesses have been negatively impacted by the coronavirus pandemic. J.C Penney, Neiman Marcus, and J. Crew have all filed for bankruptcy in recent weeks.
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