Hertz Filed For Bankruptcy On Friday Night

Hertz, the largest rental company, filed for bankruptcy on Friday night.

For one of the biggest car rental companies, Hertz needs money to support its cars, repainting, storage, and other stuff.

Where does all this money come from? It mostly relies on rental money, the money which people give to rent something. But if something happens, and that money is no longer available. In our case, the Coronavirus attacks, and no one goes on holiday anymore, then there will be no money for Hertz, and in the end, it goes bankrupt.

Hertz actually has a long history. It started out in 1918 when Hertz started a set up for renting Ford Model Ts. Then it evolved, and came to be known as "Hertz". "I think the reason Hertz is going bankrupt, is because it only had a Plan A, no Plan B, so it ran out of money," says Tigger.