Advantage Rent a Car

Last updated

Advantage Rent A Car
Formerly$3.99 Car Rentals
Type Private
Industry Car rental
Founded1963;59 years ago (1963) in San Antonio, Texas, United States
FoundersKenneth and Helen Walker
Headquarters
Orlando, Florida
,
United States
Number of locations
6 (2022)
Area served
United States
Parent Orlando Rentco LLC
Website advantage.com OOjs UI icon edit-ltr-progressive.svg

Advantage Rent a Car is a privately held American car rental company headquartered in Orlando, Florida.

Contents

The company was founded in 1963 by Kenneth and Helen Walker as "$3.99 Car Rentals" and quickly expanded by purchasing several different car rental companies. In 1984, the various car rental brands were consolidated under the name Advantage Rent a Car. The Walker family sold the company in 2006, and by 2008, it was bankrupt. In 2009, the company was purchased out of bankruptcy court by The Hertz Corporation. Hertz was forced to divest the company in 2012 to secure regulatory approval of its acquisition of the Dollar Thrifty Automotive Group. The company changed hands between several private equity firms before going bankrupt again in May 2020. As of July 2020, the brand has been owned by Orlando Rentco LLC, and now operates just 6 locations.

Operations

Advantage operates from 6 airport locations in Atlanta, Dallas, Las Vegas, Miami, Orlando, Nashville and has a fleet of approximately 2,000 cars, ranging from economy cars to SUVs.

The company primarily services the leisure segment of the rental car market. [1]

History

In 1963, a small business owned by Kenneth and Helen Walker called “$3.99 Car Rentals” opened its doors to serve the large military population in San Antonio, Texas. Founded with a fleet of five cars, and initially serving the government traveler, it expanded very quickly over the next 20 years into feeder and leisure markets including local retail and airport markets located throughout the Western United States. During the 1960s and 70s, the company grew through the acquisition of several different franchises. The operation was later consolidated in 1984 under the name "Advantage Rent a Car." As the 1990s progressed, expansion of the Advantage brand continued throughout the U.S. into the Sunbelt states and major leisure airport markets. In 2001, Advantage attained worldwide presence by launching an affiliate partnership program that grew to an international network serving more than 33 countries. In 2006, following the death of Kenneth Walker, the Walker heirs sold the business to Venture Holding Inc. [2]

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. [3] Advantage was at that point privately held by disgraced Minnesota auto dealership mogul Denny Hecker (who is currently serving a 10-year prison sentence). [4]

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". [5] [6]

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. [7]

Sale and bankruptcy

On August 26, 2012, Hertz announced [8] that it had agreed to sell the US Advantage business to Franchise Services of North America and Macquarie Capital, as a divestiture to receive regulatory approval of Hertz's acquisition of Dollar Thrifty, announced at the same time, and to convert foreign Advantage-branded locations to a new Firefly Car Rental brand. [9] On December 12, 2012, Advantage Rent A Car was acquired by a subsidiary of Macquarie Capital, which was to be merged with Franchise Services of North America, Inc. (TSXV:FSN) immediately after a shareholder vote scheduled for 1Q13. The merger received final TSX regulatory and shareholder approval on May 3, 2013. [10]

In April 2014, Advantage was acquired by its current owner, Catalyst Capital Group Inc., [11] a Canadian investment firm based in Toronto. [12]

On May 26, 2020, the company announced filed for bankruptcy for a third time. [13]

In June 2020, the intellectual property associated with Advantage Rent a Car and EZ Rent a Car, as well as its operating concessions in Atlanta, Charlotte, Dallas, Miami, Nashville, and Tampa were acquired by Orlando Rentco LLC. [14] Sixt acquired ten other former airport locations, on July 1, 2020. [15]

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References

  1. ↑ "Franchise Services of North America Inc. Announces Appointment of William Plamondon as President of Advantage Rent A Car" (PDF). FRANCHISE SERVICES OF NORTH AMERICA INC. May 3, 2013. Archived from the original (PDF) on October 20, 2013. Retrieved April 29, 2014.
  2. ↑ "Advantage RAC Founder Kenneth Walker Dies at 81". Auto Rental News. Retrieved April 29, 2014.
  3. ↑ "Advantage Rent-A-Car files for bankruptcy". USA TODAY. December 8, 2008. Retrieved April 29, 2014.
  4. ↑ DePass, Dee (January 29, 2016). "Denny Hecker moved from Colo. to Ill. for his 9th prison in 5 years". Star Tribune . Retrieved October 17, 2016. ... Hecker was sentenced to 10 years in prison in March 2011 ...
  5. ↑ "Hertz Completes Acquisition of Advantage Rent A Car". Reuters. April 9, 2009. Archived from the original on April 29, 2014. Retrieved April 29, 2014.
  6. ↑ Volkmann, Kelsey. "Enterprise Rent-A-Car outbid for Advantage assets". American City Business Journals. Retrieved April 29, 2014.
  7. ↑ "Car rental company Advantage to be placed under Chapter 11". Reuters. November 5, 2013. Retrieved April 29, 2014.
  8. ↑ "Enterprise Rent-A-Car outbid for Advantage assets". PR Newswire. Retrieved August 28, 2019.
  9. ↑ "Hertz Re-Enters Value Brand Segment with Firefly". AutoRentalNews. Retrieved August 28, 2019.
  10. ↑ "FRANCHISE SERVICES OF NORTH AMERICA INC" (PDF). FRANCHISE SERVICES OF NORTH AMERICA INC. May 3, 2013. Archived from the original (PDF) on October 20, 2013. Retrieved April 29, 2014.
  11. ↑ "Advantage Rent-A-Car" . Retrieved April 17, 2017.
  12. ↑ "Company Overview of The Catalyst Capital Group Inc". Bloomberg. Retrieved April 17, 2017.
  13. ↑ "A car-rental company previously owned by Hertz just filed for bankruptcy for the third time since 2008". Business Insider. May 26, 2020.
  14. ↑ "Orlando Rentco Acquires 6 Advantage Locations". Auto Rental News. July 3, 2020. Retrieved April 21, 2021.
  15. ↑ "Sixt Acquires 10 Former Advantage Locations". Auto Rental News. July 3, 2020. Retrieved April 21, 2021.
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