TUNAHITA, Tahiti (Reuters) – Car rental firm Car Rentals has shut down its operations in the tiny Pacific island nation of Tahiti after it failed to make payments to creditors and faced bankruptcy, a spokesman said on Monday.
Car Rentals operates in about 1,000 rental properties and has a network of about 1.2 million members, the spokesman said in a statement.
The company had not given a reason for the shutdown, which was announced in a notice sent to creditors on Monday, but the spokesman declined to give further details.
Car rental companies operate as small business owners, renting out vehicles for rent or for lease, but they usually make payments on time and keep most of the profits, according to the company.
Car rentals in the Maldives, a tiny island nation in the Indian Ocean, were hit hardest by the collapse of the housing market last year.
In 2017, Car Rentings paid nearly $100 million to creditors, including the National Bank of Maldives.
The Maldives government said last month it would seek to extend its insolvency protection plan for six months to allow it to borrow more money and fund the island’s struggling economy.