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Home Business Al-Ittihad – “Hertz” declares bankruptcy in America and Canada because of “Corona”

Al-Ittihad – “Hertz” declares bankruptcy in America and Canada because of “Corona”

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A picture of a Hertz office in California

A picture of a Hertz office in California
The American car rental group, “Hertz”, which was founded more than a hundred years ago and is known worldwide, announced in a statement yesterday, Friday, that it placed itself under the American bankruptcy system as a result of the spread of the Covid-19 epidemic.
The group said that this decision currently includes only its operations in the United States and Canada, so it will continue to work in its main areas of activity, Europe, Australia and New Zealand.
The group added that «the impact of Covid-19 on the demand for travel was surprisingly large and led to a massive decline in the company’s revenue and future bookings.
Hertz added that it had taken “immediate measures” that prioritized the health and safety of its employees and customers, and canceled “all non-essential expenses.”
She pointed out that «ambiguity surrounds the prospects for the return of imports and the reopening of the market completely (…) What this step requires today.
On April 21, the group announced the abolition of ten thousand jobs in North America, or about 26.3 percent of its workers in the world, with the aim of saving money in the face of the uncertainty caused by the epidemic’s cordon.
On Friday, Hertz said that twenty thousand people in total were in fact demobilized, making up about half of the number of workers in the world.
Recourse to Chapter 11 of the United States bankruptcy law allows a company that is unable to repay its debt, to perform a restructuring away from the creditors ’intervention.
The group emphasized that “financial reorganization will provide Hertz a path towards a more robust financial architecture that will define a better position for the company in the future.”
“Hertz has more than a century of leadership in this industry, and in 2020 we started with a great vitality of revenue and profits,” Group Chairman Paul Stone said in the statement.
But the epidemic halted activity and group management feared the recovery would be delayed.

Source: Reuters





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