Washington (AFP)

Car rental company Hertz, badly affected by the impact of the coronavirus pandemic, announced Friday evening that it had filed for bankruptcy in the United States, a procedure that affects its operations in the United States and Canada.

"The impact of Covid-19 on travel demand has been sudden and dramatic, resulting in a sharp drop in company revenues and future bookings," the group said in a statement.

Hertz says it has taken "immediate action" that prioritizes the health and safety of employees and its customers. It also eliminated "all non-essential expenses".

"However, uncertainty remains as to the return of income and the complete reopening of the market (...) which necessitated today's action," he adds.

Hertz's main international operating regions, notably Europe, Australia and New Zealand, are not included in this procedure, known as Chapter 11 in the United States.

On April 21, Hertz had cut 10,000 jobs in North America, or 26.3% of its global workforce, to save money in the face of the uncertainties caused by the coronavirus pandemic crippling the economy.

Recourse to Chapter 11 is a device that allows a company that can no longer repay its debt to restructure away from creditors.

"The financial reorganization will provide Hertz with a path to a more robust financial structure that will better position the company for the future," said Hertz.

Hertz's franchised sites, which do not belong to the company, are also not included in the procedure in chapter 11.

© 2020 AFP