NEW YORK (77 WABC) — Rental car giant Hertz filed for bankruptcy, the latest big-name company to face the brunt of the coronavirus economy.
The company, which started renting cars more than a century ago, survived the Great Depression. Hertz said by declaring bankruptcy it intends to stay in business while restructuring debts.
“With the severity of the COVID-19 impact on our business, and the uncertainty of when travel and the economy will rebound, we need to take further steps to weather a potentially prolonged recovery,” Hertz CEO Paul Stone said in a recent statement, Forbes reported.
Hertz, which also owns rental companies Dollar and Thrifty, already had to make personnel changes.
As many as 12,000 employees in North America were told they are losing their jobs and 4,000 others are on furloughs. Hertz had 38,000 workers at the start of the year.
Shares of Hertz Friday plummeted more than 7% on news the bankruptcy was imminent.