The car rental company Hertz have filed for bankruptcy due debt and amid the coronavirus pandemic has crippled global travel.
The rental giant has 400 outlets across the UK and Ireland, and at the end of March the firm was $18.7bn in debt with just $1bn cash in the bank.
The company lost all revenue due to the shutdown, with debt payments being missed in April, whilst 4,000 staff were furloughed and 12,000 staff from the global workforce were cut.
Former boss Kathryn Marinello said on the company’s first-quarter earnings conference call on 12 May, “No business is built for zero revenue.
“There’s only so long that companies’ reserves will carry them.”
Hertz warned that they may not be able to repay or refinance debt, in their first-quarter report filed earlier in May with securities regulators.
“Management has concluded there is substantial doubt regarding the company’s ability to continue as a going concern within one year from the issuance date of this quarterly report,” it said.