Hertz filed for bankruptcy Friday night, the latest victim of the sudden economic downturn sparked by the Covid-19 pandemic.
The company has been renting cars since 1918, when it set up shop with a dozen Ford Model Ts, and has survived the Great Depression, the virtual halt of US auto production during World War II and numerous oil price shocks. By declaring bankruptcy, Hertz says it intends to stay in business while restructuring its debts and emerging a financially healthier company.
“The impact of Covid-19 on travel demand was sudden and dramatic, causing an abrupt decline in the company’s revenue and future bookings,” said the company’s statement. It said while it too immediate action in response to the crisis, “uncertainty remains as to when revenue will return and when the used-car market will fully re-open for sales, which necessitated today’s action.”
Pier 1 Imports said it will go out of business and permanently close all 540 of its stores. The Texas-based company said Tuesday that it was unable to find a buyer for its business after filing for bankruptcy protection earlier this year.
Pier 1 will start going-out-of-business sales as soon as it can reopen stores that have been temporarily shut due to the coronavirus pandemic. The company joins other major retailers to since the disease erupted in the U.S. in March. Apparel maker J. Crew as well as department store chains J.C. Penney and Neiman Marcus have all declared bankruptcy this month.