Bankruptcy for Advantage Rent-A-Car : Kathika Travel Website

By Kori Ellis

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Travelers in the United States and around the world will have one less rental car company to choose from, as Advantage Rent-A-Car has filed for bankruptcy. The company points to a decline in travel, a stubborn credit market and increased industry costs as the reasons why they were forced to take action.

Headquartered in San Antonio, Texas, Advantage Rent-A-Car has locations in 16 states including California, Colorado, Nevada and Texas. Internationally, the company has locations in a number of countries including Mexico, Italy, Spain and Australia.

Advantage Rent-A-Car has laid off 440 of their 900 employees around the world – or nearly 50% of its workforce. The company is immediately closing approximately 21 locations, however they will be open for car returns. Any pending rental car reservations in those closing locations have been turned over to Hertz Car Rentals.

During the bankruptcy proceedings, Advantage Rent-A-Car will explore the possibility of merging with another car rental company. Selling the privately owned corporation is another possible outcome.

On a whole, the car rental industry is struggling. A number of the major players in the industry are reporting record low earnings. If the economy in the United States takes another turn for the worse, experts predict that many other car rental companies may be forced to follow Advantage Rent-A-Car’s lead.

photo credit: Arild Andersen