Published on May 25th, 2020 | by Subhash Nair0
100-Year Old Car Rental Company Hertz Goes Bust in the US
The coronavirus pandemic has put an enormous strain on companies throughout the world, and today the first of many giants has fallen. The company almost synonymous with car rental itself, Hertz, is going bankrupt in the US.
According to Reuters, Hertz Global Holdings Inc has filed for Chapter 11 protection on Friday. This comes after the company failed to get relief from the US Government and couldn’t come to an agreement with its biggest lenders.
As a car rental business, Hertz and its sister brands were extremely reliant on travellers coming in through airports. With global and domestic air travel at record lows, the firm was unable to generate much revenue during the pandemic.
Under Hertz Global Holdings Inc are three brand, Hertz, Dollar and Thrifty – all of which are in the business of car rentals. They’ve been missing lease payments since April, but waiver agreements on these leases expired on Friday.
The future of the company and its 38,000 global employees looks bleak. Even in 2019, the company was straddled with US$18 billion of debt with liquidity of US$1 billion. Hertz has a network of over 8500 locations throughout 150 countries.
In Malaysia, Hertz has been in operations since 1982 with Sime Darby Rent A Car Sdn Bhd. It remains unclear what will happen to this entity going forward.
Sime Darby Rent A Car Sdn Bhd, a wholly owned subsidary of Sime Darby Motors, began operations in 1982 and holds the franchise license for Hertz in Malaysia. Over the years, the company has been active in offering exceptional quality car rental services with short-term and long-term rental options as well as chauffeur and transfer services. Hertz Malaysia has vast experience in fleet management, operational leasing and car rentals which complements Sime Darby Motors long involvement in the retail operations, distribution and assembly of motor vehicles in Malaysia and the region.
Hertz Malaysia operates in every major city and airport nationwide, making our network the widest amongst all car rental companies in Malaysia. Our 17 outlets are located in Kuala Lumpur, Kuala Lumpur International Airport (KLIA), KLIA2, Skypark Subang, Johor Bahru, Senai Airport, Kuantan Airport, Kota Bharu Airport, Penang, Penang International Airport, Alor Setar Airport, Lumut, Kota Kinabalu International Airport, Labuan Airport, Sandakan Airport, Kuching Airport and Miri Airport.
Committed in offering superior car rental solutions to meet every need and budget, Hertz Malaysia offers a comprehensive fleet of over 3,500 hire and drive licensed vehicles ranging from various make and models for your selection.
Choose from a functional sedan, a spacious multipurpose or a 4 wheel drive vehicle. For those looking to pamper themselves with a little luxury, Hertz Malaysia has a range of luxury models for hire. We place the utmost importance on safety and ensure that all our vehicles are well maintained and of the best quality.
To meet our customers’ expectations, we focus on consistent quality service by equipping our staff with the understanding of our goals and missions. All our team members are professionally trained and devoted to offering the best solution for your transportation needs. At Hertz Malaysia, customer satisfaction is our priority. We remain dedicated to make our car rental services efficient and accessible to each and every traveller, whether it is for business or leisure. With outlets located throughout Malaysia, you are always assured of an affordable, reliable and pleasant car rental experience with Hertz Malaysia.