Car rental company Hertz has filed for bankruptcy protection in the United States after the pandemic saw its business decline.
The company, which earns much of its revenue from car rental at airports, said it had been affected by the sharp decline in global travel.
It will continue to work while restructuring its debts.
The company – which began a century ago in Chicago with a dozen Model T Ford cars – had already flooded or laid off 20,000 employees, or about half of its global workforce, in response to the pandemic.
Its CEO resigned last week.
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Prior to the pandemic, the company had collected billions of dollars in debt, with the increase in apps for riders leading to a reduced demand for car rentals.
“The effect of Covid-19 on travel demand was sudden and dramatic, causing a sudden decrease in the company’s revenue and future bookings,” Hertz said on Friday.
Although it had taken “immediate action to prioritize the health and safety of employees and customers, eliminate all non-essential expenses and preserve liquidity,” the uncertainty of whether and when the market would recover from its decision led.