The outcome may not be as negative as feared, but there’s a greater issue for car rental companies in all this.
The bankruptcy petition lists liabilities of $500 million to $1 billion with estimated assets of $100 million to $500 million.
All of Hertz's businesses globally remain open. International operating regions including Europe, Australia, and New Zealand are not included in the bankruptcy, nor are Hertz's franchised locations.
Hertz’s lenders have given the company until May 22 “to develop a financing strategy and structure that better reflects the economic impact of the Covid-19 global pandemic.”
The court ruled that the bankruptcy was “filed without proper corporate authority," and that a subsidiary of Macquarie Capital, FSNA's largest shareholder, had not consented to the bankruptcy.
Rent-A-Wreck of America Inc. has filed for Chapter 11 bankruptcy in Delaware, saying costly and lengthy litigation with the company’s founder has strained its liquidity. Rent-A-Wreck has spent $2.7 million in legal fees and expenses over the past 10 years.
Franchise Services of North America Inc. (FSNA), franchisers of the U-Save brand, has filed for Chapter 11 bankruptcy protection to preserve the value of its assets for the benefit of creditors and shareholders.
While the high-profile bankruptcy of Atlas Choice has left many car rental companies wary of working with brokers, rental companies can take steps to protect themselves and ensure a productive relationship.
The bankruptcy of the Haggen grocery chain shows the FTC hasn’t learned its lesson.
The Federal Trade Commission (FTC) has approved an application by Franchise Services of North America Inc. (FSNA) to sell its Advantage Rent A Car business to The Catalyst Capital Group Inc.