Business

Hertz prepares to file for bankruptcy

Published

4 years ago

May 23, 2020

Hertz, the car rental group backed by US billionaire businessman Carl Icahn, is set to file for bankruptcy, according to people briefed about the matter, joining a growing list of illustrious American companies forced out of business due to the impact of the coronavirus pandemic.

The Florida-based company was preparing to file for Chapter 11 bankruptcy after it failed to meet a payment deadline agreed with its lenders, those people said. Hertz had already missed a payment earlier last month but its lenders had agreed to postpone the payment to Friday.

Coronavirus, which has prompted government lockdowns in multiple countries and ground international travel to a halt, has ignited a global existential crisis among the world’s largest car rental companies in recent weeks that is likely to force other companies to file for bankruptcy.

Car rentals largely depend on airports for profits in the US and across Europe, which account for two-thirds of their business. However, since flight numbers have collapsed due to travel bans imposed both in the US and the EU, rental groups have seen revenues evaporate.

Hertz, which has about $19bn in debt, had been trying to restructure the business long before coronavirus brought the travel industry to a standstill as the rental group was struggling to fend off losses due to raising competition from rivals such as Avis and upstarts such as Uber.

In April the company, in which Mr Icahn is the biggest shareholder with a 39 per cent stake, decided to cut 10,000 jobs, more than a quarter of its US workforce, in an effort to mitigate the impact of the health and economic crisis.

The fallout of the pandemic is have an effect on the entire car rental sector globally.

In the US, Avis posted a $158m loss in the first quarter, warning of an 80 per cent fall in sales in April and an $800m cash burn between April and June. Privately held Enterprise, the industry’s biggest group, said it faced significant and unprecedented challenges.

In Europe Germany’s Sixt was forced to seek a €1.6bn loan to help it navitage the crisis, while Paris-based Europcar tapped its banks for a €220m loan.

US-based groups have been affected more severely than their European counterparts partly due to their business model. American groups buy the cars outright, saddling them with the job of selling the vehicles at a later date. This model is heavily reliant on a functional second-hand car market.

European groups favour the “buyback” model, where rental companies take vehicles with an agreement the carmaker will buy them back at a fixed time and price. This protects the rental group from any unexpected changes in used car prices.

The Wall Street Journal first reported news of Hertz preparing to file for bankruptcy.

(Note: This is a Article Automatically Generated Through Syndication, Here is The Original Source

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Business

David Beckham, Soccer Legend, Sues Hollywood Star Mark Wahlberg for Allegedly Defrauding Him of $16.4 Million

Published

14 hours ago

April 23, 2024

Manoj Nair

David Beckham, Soccer Legend, Sues Hollywood Star Mark Wahlberg for Allegedly Defrauding Him of $16.4 Million

Former deep friends and business associates, soccer legend David Beckham and Hollywood star Mark Wahlberg, are now crossing swords, with the former suing the latter over an £8.5 million ($16.4 million) dispute.

David Beckham Lawsuit Against Mark Wahlberg’s F45 Training Company

In his lawsuit, David Beckham alleges that Wahlberg’s F45 Training Company behaved fraudulently and misled during business transactions.

The lawsuit also names Wahlberg’s Mark Wahlberg Investment Group (MWIG), and F45’s founders, Adam Gilchrist and Rob Deutsch, as defendants.

The legal battle between Beckham’s firm, DB Ventures Ltd, and Wahlberg’s F45 Training began in 2022 and was later joined by Australian golf entrepreneur Greg Norman. However, the Judge directed the two parties to present their cases separately. Both Beckham and Norman alleged in their filings that Wahlberg misled them into becoming brand ambassadors. Beckham also claimed in the filing that he lost over £8.5 million because he did not receive the promised shares just before their value plummeted.

Beckham’s company, DB Ventures Ltd, had signed a deal with F45 Training, a company in which Wahlberg has a 36% stake and also serves as the chief brand officer. Beckham’s association with Mark began when he moved to California to play for the L.A. Galaxy and became F45’s Global Ambassador. Beckham, who has millions of social media followers, immensely benefited F45 through this association. However, Beckham never received the $10 million he was promised, and subsequently, the company’s shares tanked.

Wahlberg has refuted all the allegations as baseless and called for the lawsuit to be dismissed. He added that Beckham’s company is blaming everyone but not examining its own actions. Relations between Wahlberg and Beckham were very cordial, and the two were neighbors when the former English footballer moved to Los Angeles in 2007, residing in the same Beverly Hills location. Beckham also promoted F45 on social media, including Instagram, but the posts have since been deleted.

Beckham’s wife, Victoria Beckham, celebrated her 50th birthday on Saturday at a club called Oswald’s, along with her family, including her children Brooklyn, Romeo, Cruz, and Harper. The birthday party was also attended by her former Spice Girl bandmates Emma Bunton, Mel C, Mel B, and Geri Horner. The guest list also included Eva Longoria, Gordon Ramsay, and Tom Cruise.

Also Read: 4 Inspirational David Beckham Hairstyles That Every Fan Should Try At Least Once

Net Worth

Rizwan Sajan Net Worth 2024: How Much is the Indian Businessman Worth?

Published

1 day ago

April 22, 2024

Vishnu Chaudhary

Rizwan Sajan Net Worth 2024: How Much is the Indian Businessman Worth?

Who is Rizwan Sajan?

Rizwan Sajan is a distinguished Indian entrepreneur renowned for his founding role in The Danube Group, a leading building materials company based in Dubai. Despite humble beginnings, Sajan’s journey exemplifies resilience, determination, and the transformative power of entrepreneurship.

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Rizwan Sajan Career

Sajan’s career trajectory reflects a remarkable rise from modest origins to entrepreneurial success. Starting as a hardware store employee in Dubai during the early 1990s, he laid the groundwork for his future endeavors. His entrepreneurial spirit led him to establish The Danube Group in 1993, marking the beginning of his pioneering journey in the business world.

Rizwan Sajan Net Worth

As of 2024, Rizwan Sajan’s net worth stands at a staggering Rs 18,000+ crores. This substantial wealth places him among the elite echelons of business magnates globally, underscoring his exceptional achievements and contributions to the industry.

Rizwan Sajan Age

Born on August 8, 1963, Rizwan Sajan is currently 60 years old, symbolizing a lifetime of dedication, perseverance, and entrepreneurial prowess.

Rizwan Sajan Family: Wife and Children

Sajan cherishes a strong familial bond with his wife, Sameera Sajan, and their son, Adel Sajan, who is married to Dr. Sana Sajan. Their close-knit family dynamic underscores the importance of love, unity, and support in Sajan’s personal and professional life.

Rizwan Sajan Height and Weight

Specific details regarding Rizwan Sajan’s height and weight are not widely available, emphasizing the focus on his accomplishments rather than superficial attributes.

Also Read: Karl-Erivan Haub Net Worth 2024: How Much is the Former Managing Director of the Tengelmann Group Worth?

Net Worth

Karl-Erivan Haub Net Worth 2024: How Much is the Former Managing Director of the Tengelmann Group Worth?

Published

4 days ago

April 20, 2024

Vishnu Chaudhary

Karl-Erivan Haub Net Worth 2024: How Much is the British musician and bassist Worth?

Who is Karl-Erivan Haub?

Karl-Erivan Haub, a prominent figure in the German retail industry, was born into the influential Haub family on September 29, 1932, in Wiesbaden, Germany. He was the son of Erich Haub and Elizabeth Haub (née Schmitz-Scholl), belonging to the esteemed Mülheim family Schmitz-Scholl, renowned founders of the Tengelmann grocery chain.

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Karl-Erivan Haub Career

Haub’s career trajectory was marked by his dedication to the Tengelmann Group, one of Germany’s largest retail entities. After completing internships in the United States and obtaining a degree in economics from the University of Hamburg, Haub joined the family business in 1963. He ascended to the position of managing director in 1969, steering the company’s strategic direction towards retail trade expansion. Notable milestones include the acquisition of The Great Atlantic & Pacific Tea Company in 1979, which cemented Tengelmann’s international presence.

Karl-Erivan Haub Net Worth

At the time of his passing in March 2018, Karl-Erivan Haub left behind a significant net worth of $6.4 billion. However, recent developments have sparked intrigue, with reports surfacing of his alleged reappearance in Moscow after being declared legally dead in 2021. The circumstances surrounding his net worth remain uncertain amidst this perplexing saga.

Karl-Erivan Haub Age

Born on September 29, 1932, Haub would have been 91 years old in 2024 if he had not been declared legally deceased in 2021.

Karl-Erivan Haub Family: Wife and Children

Haub was married to Helga Otto in 1958, and together they had three sons: Karl-Erivan, Georg, and Christian W.E. Haub. His dedication to family and philanthropy underscored his personal and professional endeavors, leaving a lasting legacy beyond the business realm.