Hertz

As of January 30, 2017, The Hertz Corporation is a car rental company.

It was founded in 1918.

It has been represented in Russia since 1996.

History

2024: Plan to sell a third of U.S. electric vehicle fleet due to low demand

Hertz plans to sell a third of its fleet of electric vehicles in the United States and reinvest in gas cars due to low demand for battery options.

The sale of 20,000 electric vehicles began in December 2023 and will continue through 2024, the rental car giant said.

2020

Hertz shortly before bankruptcy paid top managers bonuses worth more than $16 million

On May 19, Hertz Global Holdings Inc., an American car rental company, approved the payment of bonuses to top managers in the total amount of $16.22 million^[1].

Three days later - on May 22 - the company filed a lawsuit to start bankruptcy proceedings, indicating that the decline in demand for its services under quarantine restrictions turned out to be "unexpected and dramatic, which led to a sharp decrease in revenue and the number of future orders."

The document on the website of the Exchange and Securities Commission (SEC) USA reports that Hertz CEO Paul Stone, in particular, will receive $700 thousand, executive vice president and chief financial officer Jamir Jackson - $600 thousand, and executive vice president and chief marketing officer Jody Allen - about $190 thousand.

In total, Hertz paid premiums to more than 340 employees at the director level and above. As one of the justifications for the payments, the company indicates "significant additional efforts made by key employees in the context of a reduction in labor force."

Paying premiums before filing for bankruptcy allows companies not to receive bankruptcy court permits for this, MarketWatch notes.

Bankruptcy of the company

On May 22, 2020, Hertz filed for bankruptcy. The world's largest car rental service was forced to take such measures due to the COVID-19 coronavirus pandemic, which hurt all industries, including transport.

Hertz Global Holdings today announced that it, along with some of its U.S. and Canadian subsidiaries, has filed voluntary Chapter 11 reorganization petitions with the U.S. Bankruptcy Court of Delaware County , according to a press release on the auto distributor's website.

The world's largest car rental service Hertz filed for bankruptcy

It is noted that Hertz has taken the necessary measures to protect the health of employees, and also reduced insignificant costs in order to maintain liquidity.

The company said in a statement that the impact of COVID-19 on the demand for vehicle rental services was sudden and dramatic. The service does not know when the market for supported cars will recover.

At the time of filing for bankruptcy, Hertz had more than $1 billion in cash at its disposal to maintain its current operations. The company admits that it can start looking for additional funds, including through new borrowings.

In a bankruptcy-related reorganization, all Hertz companies around the world, including their subsidiaries Hertz, Dollar, Thrifty, Firefly, Hertz Car Sales and Donlen, will open and continue to serve customers. All bookings, promotional offers, vouchers as well as customer loyalty programs, including bonus points, are expected to continue as normal, the company added.

In March 2020, in order to avoid bankruptcy, the company sold part of its cars, and in May laid off about half of its employees - 20 thousand people. By May 22, Hertz has about 2,000 U.S. rental locations and more than 5,000 worldwide. The service left Russia in 2017.^[2]

Notes