July 30, 2002
Canadian Budget Rent a Car not affected by U.S. parent’s bankruptcy
Toronto, Ontario – Jeff Brookhouser, Executive Vice President & General Manager of Budget Rent a Car in Canada, issued a statement on Monday declaring that the company’s Canadian operations are independent of its U.S. parent.
“This Chapter 11 filing only involves Budget Group and its companies in the United States,” said Brookhouser. “Domestic and international franchisees are not part of this filing. Pursuant to its recapitalization initiative, the Chapter 11 filing will allow Budget Group to accelerate its previously announced plan to reduce its non-vehicle debt and to seek new investment, while maintaining normal operations. The Company is continuing discussions with interested investors and intends to announce an agreement soon. Indeed, we are confident that Budget Group Inc. will emerge as an even stronger and more viable entity.”
Brookhouser said there will be no disruption to business in Canada, or to North American System and operations. In Canada, Budget Rent a Car is a system of Canadian-owned-and-operated franchises. “Canadian franchised locations are “well capitalized and financially strong,” said Brookhouser.
Budget Canada has a diverse car and truck rental business both on-airport and in neighborhood markets. 65% of Budget’s locations in Canada are off-airport, servicing local neighbourhoods.
“We currently have more than three hundred and sixty five operating locations throughout Canada and employ over 3,000 people with a fleet of 26,000 cars and light trucks – the largest in Canada in all of these categories,” he said.