Hertz files for bankruptcy: What it means for Australia

The Australian subsidiary of the Hertz rental car agency has announced it is "business as usual" despite its US-based parent company filing for Chapter 11 bankruptcy on Saturday.

The vice-president of the Asia Pacific region, Eoin Macneill, has released a statement which said its 300 locations remain open across both countries.

Mr Macneill said the decision by Hertz Global Holdings and its subsidiaries in the US and Canada to voluntarily file for "reorganisation under Chapter 11 in the US Courts would have no material impact on Hertz in Australia or New Zealand.

"All our reservation, loyalty and customer programs continue to operate including Hertz Gold Plus rewards as well as well as our rewards, coupon and voucher programs," said Mr MacNeill.

"Like many other businesses around the world, Hertz has been deeply impacted by the COVID-19 pandemic and the consequent downturn in domestic and international travel," he said.

 

A Hertz car rental is closed during the coronavirus pandemic in Paramus, New Jersey. Picture: AP
A Hertz car rental is closed during the coronavirus pandemic in Paramus, New Jersey. Picture: AP

 

"It's vital that our customers understand that it is still "business as usual'' for Hertz in Australia and New Zealand despite this latest development …

"Our day-to-day operations will continue as they have been and will not be impacted in any way by this filing, nor will it affect our ability to provide rental vehicles to our customers on an ongoing basis. "

Chapter 11 is a US-specific legal move which can be taken by a company to file for protection while it restructures financially but continues its usual operations.

The move followed media reports earlier this month that the US rental company had failed to make lease payments in a bid to preserve cash amid the COVID-19 pandemic.

Mr Macneill said the Hertz business will continue operating.

"We are preparing our operations for the recovery phase as lockdowns are lifted and corporate and leisure travellers start to return to the market.

"The business has taken measures to reduce our costs to match the drop we have experienced in revenues, and while it has not been an easy journey, I am proud of the hard work and commitment our teams have been demonstrating as we seek to navigate our way through these tough times."

Originally published as Hertz files for bankruptcy: What it means for Australia


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