May 22, 2020 | 10:10 pm
The car rental company Hertz filed for bankruptcy protection in the United States on Friday, shortly after firing more than 10,000 employees in North America in the face of the impact of the coronavirus pandemic on the tourism industry.
Hertz had around 38,000 employees at the end of 2019, making it one of the largest companies to fail due to the impact of COVID-19, . detailed.
Last week, JC Penney filed for bankruptcy protection, just like Neiman Marcus and J. Crew did in early May.
The more than 100-year-old company failed in talks with its creditors to get a break from its debt of more than $ 19 billion.
The application for protection under Chapter 11 was filed in Delaware and does not include its international operations in Europe, Australia and New Zealand.
Travel restrictions greatly affected Hertz, as a large part of its income comes from renting vehicles at airports. Although the company tried to receive federal supports like those received by the airlines, it was not successful.
Billionaire investor Carl Icahn is Hertz’s largest shareholder: He owns almost 39% of the company.
This Friday, in operations after the market closed, Hertz shares plummeted 35.56% to $ 1.83. In the session, they fell 7.49%, accumulating a loss of 82% so far in 2020, as they closed last year at $ 15.75 per share.
With information from . and .