Over the last several years Hertz has does its best to strip the company of anything of value, from property to talent. In return they took the debt up past 17 Billion dollars. Now they want to attempt to restructure that mountain of debt yet again. It has been a company that gives out bonuses based upon how much a location did not loose year over year. Face it, management took huge bonuses based upon nothing. Many of them committed crimes that should have sent them to prison. Companies this poorly run should follow the likes of Sears, Mervyns, Circuit City, and on and on, and just go away. It serves no purpose anymore, and it's time we all wake up and realize this. It's been on life support for years, it's time to pull the plug.
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I worked in IT for them for years. They let location people add insurance and the like that wasn't requested and then fought the customers for a refund. They let debit cards be used for prepaid online rentals. When they showed to get their car, they denied them. The online system allowed it but the customer couldn't add a debit card to their Gold account as it had to be done by an employee. If you rented in Mexico et al you better be a lawyer. Any foreign location was a potential nightmare. Greddy punks to the max. Clueless department managers.
Great response, however, the numbers should be billions (ie: revenue)
wow, best piece ever.
There have been many bitter comments in majority of the threads.
I don't hear anybody shouting "HUGE" no more.
The business model was marginally viable even during good times. All public record and your own fault if you trusted the average leadership and never fact checked.
Economics 101 for 2019: revenue $9,779m, cost $9,130m, EBITDA $649m, liquidity $1,400m, debt $17,089m as of Dec 31st. Liquidity helped by $750m rights offering in June 2019. If all EBITDA went to pay for the debt and debt was interest free, it would take us 26 years to repay.
Pre-corona, the Fed path of increasing interest rates would have eventually forced us to use all EBITDA for debt and we would have crashed within 24 months.
Corona just accelerates the timeline. 90% less revenue cannot be compensanted. Furlough buys extra time, but we will go under Chapter11 in 3-5 months.
Last piece of advice. If you are furloughed, 95% probability you ain't coming back. Travel will not be like before and there are already 50% non-furlough employees that will pick-up your jobs. Don't expect sympathy from a CEO who thinks foregoing her base pay is as big a sacrifice as employees getting zero dollars. Simple fact check shows her full pay is 7x base and while she will not get several hundred thousands, no way she is giving up her millions.
Truer words have never been spoken.