Advantage, suffering along with the rest of the sector from the weak economy and tight credit, filed for Chapter 11 bankruptcy protection in December. The company, which posted 2008 revenue of $146 million, has 20 locations, down from 140 at its peak.
Hertz hasn't been immune from those issues, having swung to a big fourth-quarter loss on charges. Revenue also fell 16% to $1.78 billion in the quarter. Just this week, Standard & Poor's Ratings Services lowered Hertz's long-term corporate credit rating two notches deeper into junk.
The car-rental industry has suffered as everyone cuts back on travel. The weak economy and credit crunch also have made it harder for rental-car companies to find buyers for their used automobiles and to secure financing to buy new ones. The industry is lobbying Congress to allow car-rental companies to use Troubled Asset Relief Program funds to finance new auto purchases.
Still, Hertz gains a brand aimed at price-sensitive customers in U.S. leisure destinations, showing how the recession has made it easier for bigger, stronger players to pick up distressed competitors.
The bankruptcy court will hold a hearing Friday, with Hertz expecting a close next Wednesday.
Hertz shares were unchanged in after-hours trading. They ended the regular session up 7.4% at $4.22.
