WESTLAKE, Ohio -- Two months after acquiring the Petro Stopping Centers chain, TravelCenters of America has announced a reorganization that it says could, collectively with other synergies with Petro Stopping Centers, save the company $16 million a year.
We have recently implemented plans for a reorganization of our management and field staff, officials said in a press release. We expect that our reorganized staff will be able to react more quickly to both opportunities and challenges in the marketplace and that our restructured organization will [image-nocss] create a system of field management which promotes creativity and entrepreneurial activity while maintaining control over our business.
This reorganization has two key components:
TA expects to reduce corporate office staffing principally at Petro's El Paso, Texas, headquarters gradually between now and June 2008. At completion, approximately 60 redundant positions will have been eliminated.
The company's field management functions and the corporate office, marketing and operations personnel will be realigned, resulting in the elimination of management layers, which will result in the elimination of approximately 100 positions during September 2007.
In connection with the reorganization, the company expects to incur costs of between $2 million and $3 million, principally related to severance payments and relocation benefits. Including savings from the reorganization, the company believes the synergies from the Petro acquisition may amount to approximately $16.0 million annually.
Westlake, Ohio-based TA's travel centers operate under the TravelCenters of America, TA and Petro brand names and offer diesel and gasoline fueling services, restaurants, heavy truck repair facilities, stores, and other services and facilities. TA's nationwide business includes travel centers located in 41 U.S. states and in Canada.
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