In 2012, Hertz Global Holdings was forced by the Federal Trade Commission to sell some of its locations to Advantage Rent A Car. The FTC required Hertz to do this due to anti-competitive concerns. Now, according to reports, Hertz may have a chance to buy back some of these locations.
This news comes to light after Advantage Rent A Car filed for bankruptcy in December. Now, Hertz wants the opportunity to buy back the 10 rental locations that it sold to the company. This announcement was first made by the FTC at the end of last week.
The FTC says that Catalyst Capital Group was the company that won Advantage Rent A Car’s assets in December 2013. The group said that it plans to run and operate around 40 of the rental sites that it acquired from Advantage Rent A Car. The remaining sites are to be sold off.
Other rental car companies, such as Avis Budget Group, have already agreed to by 12 locations from Catalyst Capital Group. Another six of the remaining sites are still unsold, and Catalyst Capital Group is looking for a buyer.
Franchise Services of North America, the parent company of Advantage Rent A Car, said that it is still in the process of trying to get approval from the FTC to sell the remaining spots to companies such as Hertz. If it could, the deal would help generate around $6 million.
A spokesman for the FTC, Peter Kaplan, said that he cannot comment on this deal at this time. Likewise, a spokesperson for Hertz has yet to respond to this outstanding deal. However, Hertz has wanted to buy back these locations for a long time.
A lawyer in Washington, Bob Doyle, said that the FTC has not been able to accomplish anything with making Hertz sell off those 10 locations. The only thing it has done is continue to embarrass itself publicly. If the commission approves Hertz’s buy back of these 10 locations, it is simply recreating the same setup that it was trying so hard to avoid when it made Hertz sell them.
Doyle does make a great point. If the FTC allows this purchase, the 10 properties that it made Hertz sell are going to go right back to the company. This would be considered a disgrace as far as the FTC is concerned. However, it would be a huge win for Hertz, which did not want to sell those properties in the first place.