Hertz Elect New CEO As the Company Potentially Prepares for Bankruptcy

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Hertz names new CEO, Paul Stone, amidst missed loan payments and reduction of businesses due to the pandemic.

The car rental company Hertz announced in its SEC filing that its former CEO Kathryn Marinello resigned last week and Paul Stone will be named the next CEO, according to Business Insider.

In a Securities and Exchange Commission filing, the company said that the Marinello’s resignation is effective on May 16, as well as the appointment of Stone. Stone was previously the company’s executive vice president and chief retail operations officer for North American since 2018. Before his tenure at Hertz, Stone served as an executive at Cabela’s outdoor sporting store and Sam’s Club.

Hertz is facing financial crisis and preparing for a possible bankruptcy as it missed lease payments in recent months due to the coronavirus pandemic. In April, the car rental company announced its decision of furloughing 10,000 employees, more than a quarter of its total workforce, after accumulating cancellations and decreased bookings since the coronavirus outbreak started.

In late April, Hertz told Business Insider that “conversations with our lenders are ongoing and we remain in discussions with the U.S. Treasury for support.” The company hoped for reduced lease payments.

See the full report here.

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