Bankruptcy

Business • Economy
2020-05-23T06:25:20+00:00
Hertz files for bankruptcy
Hertz car rental office in Livonia, Michigan
Hertz car rental office in Livonia, Michigan Credit: Dwight Burdette / CC BY (Creative Commons Attribution 3.0)

Hertz, the car rental company operating 10,200 corporate and franchisee locations all over the world, has filed for bankruptcy protection, excluding operations in Europe, New Zealand and Australia. Amid the Covid-19 pandemic, the company saw a sharp decrease in rentals and was not able to continue to pay its lenders. A company spokesperson said they would use over $1 billion in cash on hand to continue running its business during the bankruptcy process.

Business • Economy
2020-05-16T12:24:27+00:00
JC Penney files for bankruptcy
JC Penney logo on Buckland Hills Mall in Manchester, Connecticut.
JC Penney logo on Buckland Hills Mall in Manchester, Connecticut. Credit: JJBers / CC BY-SA (Creative Commons Attribution ShareAlike 4.0)

JC Penney, American department store chain, has filed for bankruptcy protection and is said to close some of its stores. The company currently has over 800 stores and around 85,000 employees. JC Penney is the third big retailer, after Neiman Marcus and J.Crew, to declare bankruptcy amid the Covid-19 pandemic.

Transportation • Air Transportation & Traffic, Flying
2020-05-11T17:57:29+00:00
Airline Avianca filed for bankruptcy
Avianca Boeing on Runway
Avianca Boeing on Runway Credit: Richard Vandervord / CC BY-SA (Creative Commons Attribution 4.0)

Colombian airline Avianca, the world's second-oldest airline, has filed for Chapter 11 bankruptcy. According to a statement on its website, the airline cited "unforeseeable impact of the Covid-19 pandemic" as the reason for its decision. After the impact of the pandemic cut 80% of the airline's income, 20,000 employees have been put on unpaid leave.