Hertz is an American car rental company that was founded in 1918 by Walter L. Jacobs. The company began as a small operation when the founder began renting a dozen Model T Ford automobiles.
In 2020, Hertz was already $18 billion in debt & because of Covid the company failed to meet leasing payments and was forced to file for bankruptcy in 2020.
Apart from Covid, mismanagement, a weak business model, and competition from other rental companies also led Hertz to bankruptcy.
Hertz managed to find new investors- Knighthead Capital Management and Certares Opportunities- who provided $5.9 billion in new equity capital and saved the company.
As per the third-quarter results in 2023, Hertz made revenue of $2.7 billion and $629 million in net income.
Hertz has now reduced its debt by nearly 80%, which is $5 billion. The company has also improved its liquidity significantly to fund operations and future growth.