Hertz CEO Kathryn Marinello has resigned, the company said, following a report that the company is preparing for a possible bankruptcy.

The company said in a Securities and Exchange Commission filing that Marinello’s resignation is effective May 16, though she will work as a consultant for the company for up to one year. 

Hertz’s board named Paul Stone as the company’s next CEO, effective May 16. Stone previously served as the company’s executive vice president and chief retail operations officer for North America since 2018. Before joining Hertz, Stone was an executive at Cabela’s outdoor sporting goods store and Sam’s Club. 

The Wall Street Journal reported last week that the company was preparing for the possibility it might need to file for bankruptcy after it missed lease payments.

Hertz said in April that it would lay off 10,000 employees after the company experienced increased cancellations and decreased bookings due to the coronavirus pandemic. 

The company previously told Business Insider that “conversations with our lenders are ongoing and we remain in discussions with the U.S. Treasury for support.” 

Hertz Global Holdings, Inc. also owns the rental brands Dollar and Thrifty. 

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