Hertz going bankrupt/possible liquidation

https://nypost.com/2020/05/21/hertz-may-be-on-verge-of-liquidation/

This has nothing to do with Hertz in SXM which is privately owned by locals on island.

Correct, they just "borrow" the name, signage, etc.

Looks like the US filing actually happened Friday night.

HERTZ

I rented a truck at the local airport two weeks ago On a weekday and picked up after dinner. All the rental counters combined had rented 6 cars all day. I was lucky #7.

The young kid who rented me the car said he usually ran a suburban location in another town in Ohio and they temp closed that so he was driving 45 miles to work at the airport.

So, yes it may not be SXM, but the effect is the same on all of them as well.. Inventory of cars sitting and costing money with no revenue leads to not good things.

I just rented mine from Hertz SXM for our July trip.

The parent organization is most likely going to have to end up liquidating. The local SXM Hertz is a franchisee. I'm sure some smaller car rental company might buy the Intellectual Property so they can use the name, since it is very well known.

https://www.forbes.com/sites/chrisw...ers-scramble-for-solutions/#65a1f255634e

Hertz bought 10% of US auto production last year. They bought 1.7M cars last year. Rival Avis/Budget has cut car purchases 80%.

Bankruptcy is a restructuring, not a declaration that the company is going out of business. Many degrees of bankruptcy and this is the first step.

Typically corporations have deals in place with creditors when they go in to bankruptcy. Hertz has no such deal. The feeling was they were going to file Chapter 7 which is liquidation. I was surprised to see them file chapter 11, but I'm pretty sure you'll see this go chapter 7. It is going to be at least 2 years till travel numbers are back to where they were before covid-19. Time is not on their side.