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April 17, 2020 07:02 PM

TravelCenters furloughing 3,000+ employees amid COVID downturn

Scott Suttell, Crain's Cleveland Business
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    WESTLAKE, Ohio — TravelCenters of America Inc. plans to furlough more than 3,000 employees as a result of a downturn in business stemming from the COVID-19 pandemic.

    The nation's largest publicly traded full-service travel network is keeping its 260-plus TA, Petro Stopping Centers and TA Express travel centers open, but said COVID-19 "has caused many state and local governments to close or severely limit nonessential services, including full-service restaurants."

    In addition, TravelCenters said, "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 the restaurant closures, TravelCenters said it "has made the difficult decision to furlough approximately 2,900 field employees, as well as approximately 122 corporate employees."

    "This decision was very difficult, but these are unprecedented times," TravelCenters CEO Jon Pertchik said. "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."

    All furloughed employees who are enrolled in the company's benefits programs will continue to be eligible for health care coverage based on their plan, according to an April 17 TravelCenters business update. Furloughed employees are eligible to apply for unemployment benefits under the federal CARES Act.

    TravelCenters operates more than 260 truck stops in 44 states and throughout Canada.

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