May 23, 2020 - Economy & Business

Hertz files for Chapter 11 bankruptcy

A car rental area at Miami International Airport. Photo: Kike Calvo/Universal Images Group via Getty Images

Hertz, one of the largest rental car companies in the world, filed for Chapter 11 bankruptcy on Friday evening, the company announced in a press release.

The big picture: This is the latest in a string of major retail bankruptcies this month, all emerging in the wake of the coronavirus pandemic.

What they're saying: Hertz locations will remain open for now, and the company says it has over $1 billion in cash on hand to support operations.

"The impact of COVID-19 on travel demand was sudden and dramatic, causing an abrupt decline in the Company's revenue and future bookings. Hertz took immediate actions to prioritize the health and safety of employees and customers, eliminate all non-essential spending and preserve liquidity. However, 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."
— the company said on Friday

Go deeper

Car rental pioneer files for bankruptcy as global travel halted

This Hertz in Paramus, N.J., closed for the pandemic. Photo: Ted Shaffrey/AP

Hertz — which was was heavily indebted, but with its stock at a two-year high before the pandemic — filed for bankruptcy last night after global travel halted.

Why now: The Florida giant's nearly 700,000 vehicles have been largely idled.

Coronavirus dashboard

Illustration: Aïda Amer/Axios

  1. Global: Total confirmed cases as of 5:30 p.m. ET: 5,375,648 — Total deaths: 343,721 — Total recoveries — 2,149,412Map.
  2. U.S.: Total confirmed cases as of 5:30 p.m. ET: 1,639,872 — Total deaths: 97,599 — Total recoveries: 361,239 — Total tested: 13,784,786Map.
  3. World: White House announces travel restrictions on Brazil, coronavirus hotspot in Southern Hemisphere Over 100 coronavirus cases in Germany tied to single day of church services — Boris Johnson backs top aide amid reports that he broke U.K. lockdown while exhibiting symptoms.
  4. Public health: Officials are urging Americans to wear masks headed into Memorial Day weekend Report finds "little evidence" coronavirus under control in most statesHurricanes, wildfires, the flu could strain COVID-19 response
  5. Economy: White House economic adviser Kevin Hassett says it's possible the unemployment rate could still be in double digits by November's election — Public employees brace for layoffs.
  6. Federal government: Trump attacks a Columbia University study that suggests earlier lockdown could have saved 36,000 American lives.
  7. What should I do? Hydroxychloroquine questions answeredTraveling, asthma, dishes, disinfectants and being contagiousMasks, lending books and self-isolatingExercise, laundry, what counts as soap — Pets, moving and personal healthAnswers about the virus from Axios expertsWhat to know about social distancingHow to minimize your risk.
  8. Other resources: CDC on how to avoid the virus, what to do if you get it, the right mask to wear.

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Updated 45 mins ago - Politics & Policy

White House announces new coronavirus travel restrictions on Brazil

Brazilian President Jair Bolsonaro with Trump, March 19, 2019. Photo: Jim Lo Scalzo-Pool via Getty Images

The White House announced that beginning at 11:59 pm ET on Thursday, President Trump would suspend entry of non-U.S. citizens who have been in Brazil in the past 14 days in an effort to stop the imported spread of the coronavirus.

Why it matters: Brazil has reported nearly 350,000 confirmed cases of the coronavirus — the second-most in the world behind the U.S. — and has emerged as a Southern Hemisphere hotspot as other heavily affected countries in Asia and Europe have managed to get their outbreaks under control.