Franchise Services of North America (FSNA) — which among its subsidiaries includes U-Save Car & Truck Rental, U-Save Car Sales, Auto Rental Resource Center (ARRC), Xpress Rent A Car, Sonoran National Insurance Group and Peakstone Financial Services — filed for Chapter 11 bankruptcy protection this week.

The company said it made the move in the federal bankruptcy court located in Mississippi in order to best preserve the value of its assets for the benefit of creditors and shareholders.

FSNA is the holding company for operating entities that own several car rental brands whose associated independent operators have more than 650 locations across the United States.  The company anticipates that these subsidiaries will continue to operate their businesses in the normal course during the pendency of the Chapter 11 case.

Officials added no layoffs are anticipated at FSNA or any of its subsidiaries.

FSNA explained its decision to seek bankruptcy protection was necessitated by several factors, including liquidity issues associated with expenses incurred in pending litigation by and against its former financial advisor, Macquarie Capital (USA) and two Macquarie employees who also served as directors of the company, as well as other legacy claims against the company.

The company's litigation expenses relate to the FSNA’s acquisition of Simply Wheelz —doing business as Advantage Rent A Car — which was led by Macquarie and its affiliates. The company said it also remains impaired by potential claims that are stemming from the Advantage acquisition.

“The expenses and claims arising from the failed acquisition and, in particular, those fees and expenses associated with these actions pending with Macquarie and its associates in multiple jurisdictions have severely impacted the company’s liquidity, strained the company’s ability to operate, and necessitated that the company seek bankruptcy protection,” FSNA said.