Hertz sells local operation to Best Rate Car & Truck Rental Inc.
The Hertz Corporation, which operates the Hertz, Dollar and Thrifty vehicle rental brands, has sold its local operation to long-time franchisee partner Best Rate Car & Truck Rental Inc., News is my Business confirmed.
The financial terms of deal that closed July 1 were undisclosed. However, this media outlet learned that as a result of the transaction, about 30 Hertz employees in Puerto Rico lost their jobs.
“On July 1, we closed the sale of our Hertz operations in Puerto Rico to our longtime franchisee partner Best Rate Car & Truck Rental Inc. Best Rate is a Puerto Rican-owned business that has operated our Thrifty Car Rental brand in Puerto Rico for 25 years,” said Lauren Luster, director of communications for the Hertz Corporation.
“As a trusted partner that runs its locations profitably while maintaining the high standards of customer service that Hertz is known for globally, Best Rate is well-positioned to continue serving Hertz customers in Puerto Rico,” she said.
“Unfortunately, this transition has resulted in layoffs for our existing Hertz Puerto Rico workforce,” Luster confirmed.
Attempts to reach Best Rate Car & Truck Rental Inc.’s local offices were unsuccessful. Hertz officials confirmed the Hertz brand will remain in the market.
Hertz has four offices in Puerto Rico, located at the Luis Muñoz Marín International Airport in San Juan, the Fernando Ribas Dominicci Airport in Isla Grande, the Rafael Hernández Airport in Aguadilla and Mayagüez.
The closing date of the sale coincided with Hertz’s emergence from Chapter 11 bankruptcy, which it filed in May 2020, after travel pretty much came to a standstill due to the COVID-19 pandemic, affecting most tourism industry players.
Hertz implemented a sweeping restructuring that included a new equity capital injection of more than $5.9 million, the elimination of $5 billion in debt, new $2.8 billion exit credit facility, and a $7 billion asset-backed vehicle facility.
However, Luster said the local sale “was not an exclusive result of Chapter 11, but of a larger effort to right-size our operations as a result of the global pandemic and ongoing opportunities for efficiencies.”
