Advantage Rent a Car significant event bankruptcy
Bankruptcy and acquisition by Hertz
In December 2008, Advantage filed for Chapter 11 bankruptcy protection, and closed about 40% of its U.S. retail locations, citing "a simultaneous drop in leisure travel, with greatly increased costs, and frozen credit markets" (presumably an effect of the financial crisis of 2007–2008). 440 workers, or almost half its workforce, were laid off at the time. Advantage was at that point privately held by disgraced Minnesota auto dealership mogul Denny Hecker (who is currently serving a 10-year prison sentence).On March 31, 2009, the assets of Advantage were purchased by The Hertz Corporation for $33 million, which outbid Enterprise Rent-a-Car in Minnesota bankruptcy court. The purchase included the Advantage logo and website. Hertz stated its intentions after Enterprise had announced it would acquire the assets. The Advantage website was modified to match (or closely mirror) some design and operational aspects of the Hertz website. By fall 2009, Hertz had rebranded its "Simply Wheelz" economy sub-brand with the acquired Advantage trademark properties, and had largely withdrawn the service.
Hertz described its plans to use Advantage for "... further expansion into the price-oriented travel demographic", "... providing Hertz a second brand to sell to corporate accounts and to market with key travel partners" and "... extending the useful life of vehicles in Hertz's rental fleet for Advantage's fleet needs".On November 5, 2013, Advantage announced filed for bankruptcy. As of October 25, 2013 "Simply Wheelz" sold 5,295 vehicles through auctions with an average loss of about $1,633 per vehicle, which resulted in a total loss of about $8.6 million.