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Originally Posted by Edward64
Hindsight is so 20-20. No one is arguing there are some companies that deserve to fail. I said Sears/K-Mart, JC Penney and I have no problem adding Hertz to this list.
Hertz is going bankrupt/reorg because of this coronavirus event. No company would have predicted the timing and severity of this and planned for it. If Hertz did save the $19B, they should have used it to increase customer service and combat against Uber, Lyft and like, not a coronavirus event.
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Hertz was going to go bankrupt eventually, the coronavirus just accelerated it. As I said, the company is massively in debt and has been losing money for some time. All this despite a booming economy the past few years. Their debt rating was junk and there is only so long you can go borrowing money at continuing higher rates while losing money every year.
As for "predicting it", Avis and Enterprise will be fine. They didn't decide to gut the company over the past decade and actually built businesses built to succeed in the long term. Hertz was just a company that some private equity tools gutted for their own profit.