Car rental Hertz has filed for bankruptcy protection in the United States after the pandemic brought its business to a standstill.
The company, which generates much of its revenue from rental cars at airports, said it was affected by the sharp drop in global travel.
It will continue to operate while restructuring its debts.
The company, which started operations in Chicago a century ago with a dozen T-type Ford vehicles, had already fired or fired 20,000 employees or around half of its global workforce in response to the pandemic.
The CEO resigned last week.
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Before the pandemic, the company had accumulated billions of dollars in debt, and the rise in hailstorm apps led to a decline in demand for rental cars.
“The impact of Covid-19 on the demand for travel was sudden and dramatic, leading to a sudden drop in the company’s earnings and future bookings,” Hertz said on Friday.
While “taking immediate action to prioritize the health and safety of employees and customers, eliminate all non-essential expenses, and maintain liquidity,” uncertainty as to whether and when the market would recover led to its decision .