# Professor David Yermack explains why he believes the recent Hertz bankruptcy had little to do with its previous private equity ownership

1 Faculty News June 29, 2020 ![CNN logo](/sites/default/files/styles/246w/public/assets/images/uat_027323.jpg?itok=3feg8BmM)>

Excerpt from [CNN](https://edition.cnn.com/2020/06/29/investing/bankruptcy-debt-private-equity-lbo/index.html) -- "Still, [David Yermack](https://www.stern.nyu.edu/faculty/bio/david-yermack), a professor at NYU Stern School of Business, argued the Hertz bankruptcy had little to do with its previous private equity ownership. 'It was inevitable that a firm like Hertz, which had grossly over-expanded, would have needed to restructure itself,' Yermack said. 'The rental car industry needed to shrink.'"

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