Since October 1, 2008, approximately 115 corporate-owned locations of the Dollar Rent A Car and Thrifty Car Rental brands have been closed in the US and Canada. In addition, there are approximately 10 additional locations to be closed during the remainder of 2009 as the underlying leases at those locations expire. This is all part of the company’s strategy of maximizing return on assets by closing certain corporate-owned stores that did not meet minimum return on asset and profitability hurdles.
The locations closed to date represented approximately four percent of 2008 rental revenue and operated an average fleet of about 5,500 vehicles. The company noted that it did not incur any significant restructuring charges in conjunction with these closures and does not expect any related restructuring charges in future periods.
“We have worked aggressively to eliminate underperforming and non-profitable locations from our overall portfolio, and I am glad to report, based on current economic conditions that we do not anticipate any significant additional closures in future periods,” said Scott L. Thompson, president and CEO of Dollar Thrifty Automotive Group, Inc. “Going forward, in the normal course of business, we will closely monitor our operating locations to ensure that they meet our performance objectives and will cease operations at locations when they do not meet those objectives or are no longer core to our strategy.”
In conjunction with its portfolio rationalization, the company re-franchised a number of the corporate-owned locations included as part of its location closure efforts. Since October 2008, Dollar Thrifty has re-franchised 11 locations in the US.