NAPLES — Car-rental giant Hertz says it will save $10 million a year by closing 200 off-airport locations.
The cuts come as part of the company's goal to save $200 million a year. However, Hertz says the cuts don't include the $70 million it is spending to build a new corporate headquarters in Estero in South Lee County. The company relocated its headquarters to Southwest Florida from New Jersey two years ago and it is currently leasing temporary office space in Naples and Bonita Springs.
“While the first quarter financial results were unsatisfactory, we have made progress that will lead to a stronger second half performance in 2015 and position us well for 2016,” says John Tague, president and CEO of Hertz, in a statement.
“While the company remains committed to its off-airport operation, by the end of the 2015 second quarter, it will have closed approximately 200 stores, representing 5% of the total off-airport locations and less than 1% of the vehicle fleet,” Hertz says in a statement. “The company will continue to rigorously review new store openings and the ongoing profitability of the existing locations on a quarterly basis.”
Meanwhile, Hertz says it is continuing its accounting review for financial statements dating back to 2011 and that it won't provide restatements until at least the middle of this year. “As previously announced, the previously issued financial statements must be restated and should no longer be relied upon,” the company says in a statement.