Advantage Rent A Car Files for Chapter 11 Reorganization, Consolidates Locations

SAN ANTONIO, Texas--(BUSINESS WIRE)--Advantage Rent A Car announced today that it has filed a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for Minnesota. During this reorganization, the company is exploring strategic alternatives including reorganization of the businesses, a sale or merger. While pursuing strategic alternatives, the company plans to continue to operate its business.

“The current economic environment has dramatically affected the travel industry”

“The current economic environment has dramatically affected the travel industry,” said Jon Austin, spokesman for Advantage. “We have been hit with a simultaneous drop in leisure travel, with greatly increased costs and frozen credit markets. These factors are affecting many industries and companies and we are not immune from these forces. These painful steps are a recognition of that reality.”

In addition to its primary bankruptcy petition, Advantage also filed with the Court today a number of motions to assure the continuity and stability of its business, including the payment of wages and benefits without interruption to current employees.

In addition to its Chapter 11 petition, Advantage also announced today that it is consolidating its network of rental locations effective immediately. The move allows the company to focus its marketing and operational efforts on its most profitable, highest volume locations.

The following Advantage Rent A Car locations remain open only for the return of vehicles currently out on rental and will not be renting additional vehicles:

• Albuquerque, NM airport location
• Aspen, CO airport location
• Austin, TX downtown location
• Boulder, CO University of Colorado
• Burbank, CA airport location
• Chicago, IL O’Hare airport location
• Dallas/Fort Worth, TX airport location
• Grand Junction, CO airport location
• Hayden, CO airport location
• Honolulu, HI airport location
• Kansas City, MO airport location
• Las Vegas, NV Hard Rock Cafe
• Los Angeles, CA airport location
• Maui, HI airport location
• Palm Springs, CA airport location
• Reno, NV airport location
• Rifle, CO airport location
• San Antonio, TX airport location
• San Diego, CA airport location and Hard Rock Cafe
• Seattle, WA airport location
• Tucson, AZ airport location

The following Advantage Rent A Car locations remain open for normal business activities:

• Austin, TX airport location
• Chicago, IL Midway airport location
• Colorado Springs, CO airport location
• Denver, CO airport location
• El Paso, TX Las Cruces location
• El Paso, TX airport location
• Houston, TX IAH airport location
• Orlando, FL airport location, International Drive, Lake Buena Vista, Kissimmee
• Phoenix, AZ airport location
• Salt Lake City, UT airport location

A dedicated email address – questions@advantage.com – and a toll-free hotline - 888-846-0808 – have been established for questions relating to the closed locations.

The company’s toll-free numbers for reservations - 800-777-5500 - and customer service – 800-777-5524 – remain in operation, as does the Advantage Rent A Car website at www.advantage.com.

Advantage has made arrangements with Hertz Car Rental to honor nearly all of the pending reservations at affected locations where Advantage cannot fill customer needs. Customers holding reservations to pick up a vehicle at an affected location can contact Advantage via the dedicated hotline or e-mail address above or at either its customer service or reservations numbers for more information.

Customers currently renting vehicles scheduled to be returned at affected locations should return their vehicles as scheduled.

Approximately 440 Advantage employees have received layoff notifications as a result of this consolidation. Advantage currently employs approximately 460 people at its remaining locations and at its corporate offices in San Antonio.