Car rental company Hertz has filed for bankruptcy protection in the US after the pandemic saw its business.
The firm, which earns most of its revenue from car rentals at airports, said it was affected by the sharp decline in global travel.
It will continue to operate while refinancing its debt.
Hertz̵7;s international operations in Europe, Australia and New Zealand as well as its franchised locations in the US are unaffected.
The company – which began running a century ago in Chicago with a dozen Model T Ford cars – has furloughed or laid off 20,000 employees, or around half of its global production, in response to pandemya.
The chief executive resigned this week.
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Prior to the pandemic the company had amassed billions of dollars in debt, with the rise of ride-hailing apps leading to a decrease in demand for car rentals.
“The effect of Covid-19 on travel demand was sudden and dramatic, which caused a sudden decline in the company’s revenue and future bookings,” Hertz said Friday.
While it has taken “immediate action to prioritize the health and safety of employees and customers, eliminate all unnecessary spending and maintain liquidity”, uncertainty as to when and when the market will recover led to its decision, it said its.