The recession is deepening as American workers are pushed to the margins.
TravelCenters of America has sidelined approximately 2,900 field employees, as well as ~122 corporate employees. Most were involved in the restaurants at the truck stops. 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 as the Trump depression deepens.
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. It says that 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. Although given the right-wing backlash against common sense public health measures, compliance is by no means assured.
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.
“This decision was difficult, but these are unprecedented times. We believe this step is necessary to preserve the long-term success of our company and to ensure our essential services remain available for the millions of professional drivers who rely on us daily,” said Jon Pertchik, CEO of TA.
TravelCenters of America Inc. (Nasdaq: TA) today 30 June announced the pricing of a public offering of 6,100,000 shares of its common stock at a public offering price of $14.00 per share. All of the shares in the offering are to be sold by TA. Gross proceeds from the offering are expected to be $85.4 million, before deducting underwriting discounts and commissions and other offering expenses payable by TA. TA intends to use the net proceeds from the offering to fund deferred maintenance and other capital expenditures necessary to enhance property conditions and implement growth initiatives, for working capital, and for general corporate purposes. In addition, TA has granted the underwriters a 30-day option to purchase up to an additional 915,000 shares of its common stock, at the public offering price less underwriting discounts and commissions. The offering is expected to close on July 6, 2020, subject to the satisfaction of customary closing conditions.