![]() ![]() In May a group chiefly comprising two private equity firms, Knighthead Capital Management and Certares Management, brought the company out of bankruptcy. Hertz also had to restate its earnings from February 2012 through March 2014 to correct what the Securities and Exchange Commission said were material misstatements, and it paid a $16-million penalty in 2019 to settle the SEC complaint. That weakened its ability to withstand the travel slump during the pandemic in 2020 its loss ballooned to $1.86 billion. Hertz lost a total of $273 million in 20 while its debt soared. Its stock market valuation fell from $5.5 billion before the Dollar/Thrifty acquisition to $1 billion by May 2017. ![]() It’s possible that some of Hertz’s problems with record-keeping and other elements of its theft reporting stem from the chaos the company has gone through in recent years, culminating in the 2019 bankruptcy.Īs I reported in December, the troubles began in 2012, when the company paid an obviously inflated $2.3 billion for the Dollar and Thrifty rental chain. ![]() They say that when the errors in the theft reports are documented, Hertz refuses to withdraw the reports and advises the customers to “address this matter through the legal system.” Lawyers for the claimants say that although it’s not unheard of for other car rental companies to report vehicles stolen, Hertz appears to have systemic problems keeping track of rental extensions and payments. Hertz acknowledges that it files some 3,500 theft reports per year on customers lawyers for the claimants say that figure applies to customers who rented their vehicles legally and for which the company has payment information, such as a credit or debit card number, on file. Their experiences may be the tip of a large iceberg. Hertz is a one-stop shop for American corporate shortcomings. Business Column: Hertz symbolizes everything that’s wrong with American corporations ![]()
0 Comments
Leave a Reply. |