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TravelCenters announced that it has commenced a company-wide reorganization, which is a step in the company's strategic, long-term plan to improve its operational efficiency and profitability. The reorganization plan includes leadership changes with the addition of new senior VPs for a newly created hospitality department, under which the areas of restaurants, gaming and convenience stores will be consolidated, as well as in information technology. TA has also appointed a new senior VP of corporate development, a new department initially tasked with delivering on the company's reorganizational initiatives. The company said key among these initiatives is the creation of a centralized procurement group to drive economies of scale in pricing, provide increased leverage in vendor negotiations, and ultimately lead to substantial purchasing savings and a streamlined operation. Other initiatives are focused in areas of opportunity for realizing both costs savings and increased revenues, including merchandising in the convenience stores, over-the-road delivery, truck repair training and staffing and IT systems. In addition, as part of its reorganization plan, TA is reducing its corporate headcount by a total of approximately 130 and eliminating certain positions. These changes are expected to generate net annual savings of approximately $13.1M in selling, general and administrative, or SG&A, expense.

TravelCenters provided business updates related to the COVID-19 pandemic. Currently, all TA, Petro Stopping Centers and TA Express travel centers remain open, providing essential services to drivers across the nation with fuel, showers, restrooms, quick-serve restaurants and convenience stores. Employees continue to take precautionary measures consistent with the recommendations of the Centers for Disease Control and Prevention to minimize the spread of coronavirus, including social distancing and enhanced cleaning protocols. However, COVID-19 has caused many state and local governments to close or severely limit non-essential services, including full-service restaurants. In addition, broader stay-at-home orders and an overall decrease in consumer demand has significantly and adversely affected TA's full-service restaurant business. Primarily as a result of its full-service restaurant closures, TA has made the difficult decision to furlough approximately 2,900 field employees, as well as approximately 122 corporate employees. All furloughed employees currently enrolled in TA's benefits programs will continue to be eligible for health care coverage based on their plan. Impacted employees are eligible to apply for enhanced unemployment benefits under the CARES Act.

TravelCenters announced that Peter Crage has been appointed as executive VP, CFO and treasurer effective immediately. Crage succeeds William Myers, who has resigned from the company. Crage brings more than 30 years of financial leadership experience working at public and private companies. Most recently, he served as CFO of Diamond Resorts, a $1B private equity-owned organization with 350 plus vacation destinations in 35 countries around the world.