Hertz was advised by the SEC’s Division of Corporation Finance that it intended to review the plan, at which point the plan was suspended.
Data suggests that the COVID-19 lockdown has spurred a new wave of enthusiasm for staycations and road trips, and more Europeans would prefer to avoid public transportation due to safety concerns.
Bankruptcy proceedings can impact franchise contracts, fleet payments, and corporate accounts. When the dust settles, Hertz 2.0 will have ripples beyond the franchisees.
The outcome may not be as negative as feared, but there’s a greater issue for car rental companies in all this.
To give customers total confidence when they rent a car, every vehicle will be sealed and certified "Hertz Gold Standard Clean," after undergoing a 15-point cleaning and sanitization process that follows U.S. Centers for Disease Control and Prevention guidelines.
In the U.S., year-to-date February 2020 revenue was up 8% from the same period in 2019 on both higher price and volume. By March 31, revenues had eroded 9.7% for the entire quarter compared to last year.
In an SEC filing, Hertz disclosed it has missed lease payments. Some lenders have been supportive, while others have not yet offered “sufficient support for the required waivers.”
Through the Stand for Small initiative, Hertz is offering benefits to small business owners via its Hertz Business Rewards program, which supports small and mid-size businesses.
Hertz is working with Mount Sinai Health System to make vehicles available to its employees throughout New York City, and is also supplying the Health System with free cargo van rentals to transport ventilators and other medical supplies to support the crisis.
In addition to employee furloughs, CEO Kathryn Marinello is relinquishing 100% of her base salary. Hertz is temporarily closing some 600 locations in Europe.