Hertz replaces CEO as coronavirus causes dramatic quarterly loss

Hertz Global Holdings on Monday appointed Paul Stone as its chief executive officer days after the US car rental company raised going-concern doubts following a bigger quarterly loss.

Hertz, backed by billionaire investor Carl Icahn, has suffered a “sudden and dramatic negative impact” on its business due to the coronavirus crisis, which has crushed demand for rental cars as people cancel travel and stay at home.

Lat week, the company disclosed that it had missed a loan repayment and asked lenders to extend the payment deadline to May 22. A week earlier, the company said lenders had given it until May 22 to develop a viable financial structure that “better reflects the economic impact of the coronavirus.”

Hertz, which operates the Hertz, Dollar and Thrifty rental brands, said Stone replaced Kathryn Marinello, who will remain with the company in a consulting position for up to one year.

Stone was most recently Hertz’s executive vice president and North America chief retail operations officer.

With Reuters