"We have the best team in the industry.". The size of Hertz’s lease obligations have increased as the value of vehicles has declined because of the pandemic. Meanwhile, Marinello and her team have worked tirelessly and taken an all-hands on deck approach to meet the challenges of the extremely difficult situation, while taking care of customers — including essential workers — and continuing to provide the best service and operate the best way it can under new safety protocols implemented across its organization. A year ago, they were trading at more than $15 a share. Can Hertz survive? Hertz announced plans to temporarily close all 87 car sales locations in the U.S. on Wednesday. Every vehicle is now being "sealed and certified 'Hertz Gold Standard Clean' after undergoing a 15-point cleaning and sanitization process that meets CDC guidelines. Hit hard by the coronavirus pandemic, Hertz has sent out yet another red flag about its troubled finances. Hertz, rivals enhance cleaning process to eliminate coronavirus, Shares rebound as positive Moderna vaccine trial boosts optimism for economic recovery, Your California Privacy Rights/Privacy Policy. The company reported that it lost $356 million, or $2.50 a share. Hertz could face a "very prolonged travel disruption," with the threat of a second wave of coronavirus infections hitting after the lifting of lockdowns and loosening of travel restrictions, Marinello pointed out. The 102-year-old car rental firm Hertz has filed for bankruptcy protection after its business all but vanished during the coronavirus pandemic. Here’s what investors need to know about the new Hertz CEO. Hertz has about $1bn of cash. Two months ago, when Hertz announced furloughs, Marinello said she would give up 100% of her base salary. A trade group representing Hertz, the American Car Rental Association, has asked Congress to do more for the industry by expanding coronavirus relief efforts and advancing new legislation targeting tourism-related businesses. On 16 May the board promoted an executive, Paul Stone, to replace Kathryn Marinello as CEO. The company estimates the aggressive steps it has taken to slash its costs will result in $2.5 billion in annualized savings. Stone will be taking over the CEO position from Kathryn Marinello. "I thank Kathy and look forward to working with my colleagues to do what Hertz people do best – anticipate where transportation, mobility and technology are going and innovate to best serve our customers, stakeholders and communities," Stone said in a statement. In the first quarter, Hertz saw wider losses than a year ago — and bigger losses than Wall Street expected. US airlines have so far avoided similar fates after receiving billions of dollars in government aid, an avenue Hertz has explored without success. Is it safe to rent a car? Marinello's resignation was reported in a Securities and Exchange Commission filing dated May 15. And the speed with which it occurred is astounding," she said. Previous coverage:Hertz Arena becomes parking lot for rental giant's idle cars. Company shares closed at $2.90 Tuesday, down 29 cents, or more than 9%. Hertz earlier signalled it could avoid bankruptcy if it received relief from creditors or financial aid that the company and its competitors have sought from the US government. Paul Stone, who had served as Hertz's executive vice president and chief retail operations officer, North America, will become CEO and president immediately, the company announced Monday. However, Hertz is still facing a mound of debt it's not sure it can repay. Last week, the company announced its lenders have given it more time to make up its missed lease payments in April to avoid a default, which could trigger the sale of much of Hertz's fleet. A large portion of Hertz’s revenue comes from car rentals at airports, which have all but dried up. After their formal presentations, company executives didn't take any questions from analysts listening in on the webcast or by conference call, due to the sensitivity of its ongoing negotiations with its lenders to preserve cash and attempts to restructure its debt — and possibly its entire operations. Hertz’s woes are compounded by the complexity of its balance sheet, which includes more than $14bn of securitised debt. Marinello's departure comes about two weeks after Hertz, in a separate SEC filing, said it had begun negotiating with lenders to negotiate "a financing strategy and structure that better reflects the economic impact" of COVID-19. On an adjusted basis, analysts on average expected a loss of $1.13 a share. Waiting even a short time to begin putting aside money is a huge mistake because it has an outsized effect on the amount of money you'll end up with. Then came the coronavirus, which created a "major business disruption as global travel demand dropped to almost zero and the U.S. used-car market effectively shut down," devaluing its rental fleet, she said. The warning came as the company announced its first quarter results, which only begin to show how much the car rental giant has been hurt by the pandemic. He began his career with Sam's Club and Walmart where he became western U.S. divisional senior vice president. Total revenues fell to about $1.9 billion in the first quarter, down from more than $2.1 billion a year ago, which also fell short of analysts' expectations. "No business is built for zero revenue," she said. In a regulatory filing Monday, Estero-based Hertz Global Holdings — parent of The Hertz Corp. — raised serious doubts about its ability to survive another year. Hertz also has traditional credit lines, loans and bonds with conditions that can trigger defaults based on missing those lease payments or failing to meet other conditions, such as delivering a timely operating budget and reimbursing funds it has borrowed. "The hardest part about stepping down is leaving the amazing employees that have earned my respect over the last three-and-a-half years. Despite Hertz’s past success and recognizable brand, the company has gone from a business in decline to a car wreck to be avoided. Hertz traces its roots to 1918 when Walter Jacobs, then a pioneer of renting cars, founded a company allowing customers to temporarily drive one of a dozen Ford Model Ts, according to the company’s website. He maintains a "hold" rating on Hertz's stock, due to the uncertainty it faces. The Florida-based company, which operates Hertz, Dollar and Thrifty car rentals, held talks with creditors after skipping significant car lease payments due in April. During the webcast, Marinello said there had been 12,000 "permanent separations" in the U.S., but didn't reveal how many of those happened at its corporate offices. In a 10-Q filing with the U.S. Securities and Exchange Commission, the publicly traded company disclosed it may not be able to repay or refinance its hefty debt and "may not have sufficient cash flows from operations or liquidity to sustain its operating needs or to meet the company's obligations as they become due" over the next 12 months. Hertz clears one hurdle, faces new ones amid coronavirus pandemic, Hertz Arena becomes parking lot for rental giant's idle cars, Hertz faces more financial troubles amid coronavirus pandemic, Hertz cuts 10,000 employees amid coronavirus pandemic, Hertz Global reports record revenue for Q4, but wider losses, Your California Privacy Rights / Privacy Policy. Hertz's action then came amid widespread reports that the company was headed toward a potential bankruptcy filing. All rights reserved. The firm, whose largest shareholder is the billionaire investor Carl Icahn, is reeling from government orders restricting travel. In its international operations there have been 4,000 furloughs, which are being supported with the help of various government payroll assistance programs, she added. Marinello will … "There's only so long that companies' reserves will carry them.". The coronavirus has also increased the company's costs, as it has been forced to adopt new safety measures to safeguard its employees, as well as any customers, from the highly-contagious disease. "While not necessarily a positive development, we recall that Norwegian Cruise Line Holdings Ltd. last week used essentially identical language in a filing immediately prior to a four-pronged capital raise that ultimately netted $2.4 billion of proceeds," he wrote. That included a base salary of $1.45 million, which remains the same under a new employment agreement she signed in November. The 102-year-old car rental firm Hertz has filed for bankruptcy protection after its business all but vanished during the coronavirus pandemic. The spread of the deadly virus has both discouraged and prevented travel across the globe. In an earnings webcast Tuesday, Jamere Jackson, the company's chief financial officer, said total revenue from all of its operations fell by 73 percent in April over the year.