TravelCenters of America cuts 130 jobs in sweeping reorganization

TA recruited three senior vice presidents, one for a newly created hospitality department to oversee consolidation of restaurants, gaming and convenience stores; as well as new leaders for corporate development and information technology.

Corporate development will oversee the reorganization, including leveraging TA’s purchasing muscle in vendor negotiations to save money and streamline operations. TA also wants to grow revenue though better convenience store merchandising, over-the-road delivery, truck repair training and staffing and IT systems.

“By reorganizing and enhancing our leadership team, we have taken the first formal steps in executing TA’s turnaround by repositioning management, redefining management roles and operating focus, and strategically adding new management who bring new and valuable experiences, skills and outlooks to TA,” Perchik said in a release.

The cost of selling goods outpaced the revenue generated over the past decade, Pertchik said. The 130 job cuts are expected to save TA $13.1 million in sales, general and administrative (SG&A) expense while costing $4.2 million in severance and outplacement.

“We have worked hard on planning and developing the reorganization and transition plan announced today,” Pertchik said. “I believe that this plan will result in major changes in efficiencies and improvements to TA’s business and position it well for future success.”  

The newly hired senior vice presidents are:

Kevin Kelly – Hospitality, from Delaware North, a global food service and hospitality company, where he was President of Travel Hospitality leading a subsidiary of more than 250 food service and retail locations in 19 airports.  

Dennis King – Corporate Development, most recently an associate partner at McKinsey & Company, where he spent more than 15 years leading retail and consumer company transformations. 

Sandy Rapp – Chief Information Officer, a 30-year IT veteran who most recently was chief information officer of the Timken Company.

Separately, on March 2, Pertchik hired Peter Crage, formerly chief financial officer of Diamond Resorts, a $1 billion private equity-owned organization with 350-plus vacation destinations in 35 countries, as CFO.

Around the same time, Pertchik asked TA President Barry Richards to give up the secondary role of chief operating officer “to focus on chasing down things that are underperforming.”

In the March interview with FreightWaves, Pertchik said a mix of internal and external hires makes the best leadership team.

“I just want to get things done and go kick some butt,” Pertchik said. “And have the team around me to do it.”