Hertz files for bankruptcy as demand for car hire disappears – The National

Hertz files for bankruptcy as demand for car hire disappears – The National

Hertz files for bankruptcy as demand for car hire disappears. Hertz, the car-rental company founded with a dozen Ford Model Ts over a century ago, filed for bankruptcy late Friday after sweeping travel restrictions and the global economic collapse destroyed demand for its vehicles.. Estero, Florida-based company named him its fifth CEO since 2014 just four days before the bankruptcy filing.. Analysts have warned of ramifications for the broader auto industry from a Hertz bankruptcy.. The company has a fleet of about 400,000 cars in the US that are not subject to repurchase agreements with vehicle manufacturers and could be liquidated, Michael Ward, an analyst at Benchmark, wrote in a report last week.. "The risk for the auto sector occurs if the creditors of the debt that is secured by the vehicles decides to liquidate the fleet to repay the bonds," Mr Ward wrote on May 14.. The Chapter 11 proceedings involve the company's US and Canadian subsidiaries and don't include its international operations in Europe, Australia or New Zealand.. "Hopefully, the restructuring expenses will not bury the company in the process.". Hertz disclosed on April 29 that it had missed substantial lease payments related to its rental cars..