Hertz, one of the largest rental car companies in the United States, filed for Chapter 11 bankruptcy Friday, citing an "abrupt decline" in company revenue due to 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," the company said in a statement. "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."
Hertz and its subsidiaries, including Dollar, Thrifty, and Firefly, will remain open. The rental car company says it has $1 billion in cash to support the ongoing operations of its locations.