Hertz files for Bankruptcy

[csodjd]

This is chapter 11 filing. They could convert to chapter 7 but probably doubtful. Companies go through Chapter 11 all the time and come out on the other side still operating.

Other's don't. Their assets or their company is acquired out of BK. Hertz has a problematic business model, and their ability to come out of 11 is uncertain at best. They didn't get into this problem by having a good business model. And the discovery that a LOT of business can be done by video won't help them either, not to mention it being a very competitive business generally.

This is a bit of what Forbes had to say: "It's true that Covid-19 has had an impact on Hertz—as well as an array of other large and small companies—but it was suffering long before we even heard of the coronavirus. Hertz had to contend with tough competition in the car-rental space, in addition to the onslaught from Uber and Lyft. Customers preferred the ease of use with car-sharing apps. There wasn’t a need to take the time to fill out long and one-sided contracts, wait for your car then have to drive it yourself in an unfamiliar location. Compared to this experience, it's much more convenient to open an app, request a ride and get whisked to your location."

 

[Ironwood]

Nobody is buying cars right now. Terrible time to flood the market. They won't get what they are worth.

We've all heard of the fall off in new car sales during the past two months, but apparently used car sales have fallen through the floor, especially high mileage late model fleet vehicles.

 

[dioxide45]

Other's don't. Their assets or their company is acquired out of BK. Hertz has a problematic business model, and their ability to come out of 11 is uncertain at best. They didn't get into this problem by having a good business model. And the discovery that a LOT of business can be done by video won't help them either, not to mention it being a very competitive business generally.

This is a bit of what Forbes had to say: "It's true that Covid-19 has had an impact on Hertz—as well as an array of other large and small companies—but it was suffering long before we even heard of the coronavirus. Hertz had to contend with tough competition in the car-rental space, in addition to the onslaught from Uber and Lyft. Customers preferred the ease of use with car-sharing apps. There wasn’t a need to take the time to fill out long and one-sided contracts, wait for your car then have to drive it yourself in an unfamiliar location. Compared to this experience, it's much more convenient to open an app, request a ride and get whisked to your location."

It also didn't help that Hertz always seemed to be the most expensive option. In all the years we have traveled we have probably only rented through Hertz twice. Hertz issue was debt, something like twelve billion of it. Perhaps the only thing of value Hertz has is the brand. It is the oldest rental company out there. Their cars are are all collateral for their debt. I would expect the brand name to live on even if they to to Chapter 7. Some other company or equity investor group would step in and buy the company for pennies on the dollar.

 

[MULTIZ321]

There was an article about a local Scrap metal company buying the cars that burned in the fire and pointing out that hertz is the only one that did not use The local company

Rental cars burned near Southwest Florida
International face new life as scrap metal.

Where do burned out cars go? Thousands damaged near airport will get new life as scrap metal

Thousands of rental cars burned by last month's fire near Southwest Florida International Airport are becoming scrap metal.

amp.usatoday.com

.


Richard

 

[controller1]

It also didn't help that Hertz always seemed to be the most expensive option. In all the years we have traveled we have probably only rented through Hertz twice.

I was thinking of this the other day. In over 35 years of business and leisure travel I've had a Hertz rental three times and two of those were for business when a corporate travel department had a contract with Hertz. I agree Hertz tends to consistently be the highest option in the car rental business and I've never seen what they offer that others do not also offer at less of a cost to the consumer.

 

[MULTIZ321]

What Hertz Had Under the Hood Wasn't Pretty.

Bloomberg - Are you a robot?

.


Richard

 

[Brett]

 

[bobpark56]

It also didn't help that Hertz always seemed to be the most expensive option. In all the years we have traveled we have probably only rented through Hertz twice. Hertz issue was debt, something like twelve billion of it. Perhaps the only thing of value Hertz has is the brand. It is the oldest rental company out there. Their cars are are all collateral for their debt. I would expect the brand name to live on even if they to to Chapter 7. Some other company or equity investor group would step in and buy the company for pennies on the dollar.

I don't disagree in general, but I have had very good luck renting from Hertz in Europe...and twice in Hawaii...provided I booked a year in advance, booked at their monthly rate, and used my USAA discount. Getting a vehicle in Spain for less than $200 a month is no bad deal.
My 28-day rental of a Volvo SC60 Auto Transmission in Malagá, Spain next March is costing me 162.21 euros.