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Originally Posted by PilotMan
I love how any company that can't handle Covid is a shit, poorly run company. They were doing alright before this hit. A local spa and salon that had been opened for 44 years closed for good yesterday. Must have been poorly run.
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Hertz has been run into the ground since it was purchased by private equity over a decade ago. They loaded the company up with debt to pay special dividends to their owners.
When they were offered a lifeline in March of like $500 million, they turned it down thinking this would blow over. They even came out and said they wouldn't look at vehicle debt refinancing which bit them in the ass when the used car market fell off a cliff.
Other rental companies did this stuff and are fine. Hertz has been poorly run for a long time and was going to be in trouble regardless of this. They had lost half their market value over the years and been surpassed by both Avis and Enterprise. They are bankrupt and Avis and Enterprise aren't because of poor decisions.
There is also no comparison between a billion dollar company with access to financing and a fleet of collateral in their back pocket and a family run small business who has no access to those things.