Travel Centers of America is failing and will declare bankruptcy within five years.

That’s because you’re not very bright and probably didn’t even read the story.

The month old story is simply a regurgitation of a press release TravelCenter put out for their second quarter earnings. It says TA’s “rate of growth” from April - June of 2021 was 20-25% higher than April - June of 2020.

Covid lockdowns started in March 2020 and were in full force by April. They were literally laying off thousands of people in their restaurants in April-June 2020. OF COURSE their numbers would be better in 2021.


Article dated April 17, 2020
Truck stop giant to lay off thousands amid COVID-19 crisis

 

TA is hitting the Public Relations channels pushing the idea that they are just now, finally starting to spend the $200 million they borrowed last year to fix existing locations.
TA-Petro Gives Truckers Sneak Peek at $200M in Upgrades to Parking, Showers, and More

They have 274 existing locations and are supposedly "refreshing" 100 of them.

TA's corporate bonds are priced from 8.25% to 8% and the long term average corporate bond rate is 6.6%. Their cost to borrow money is high.
TA | TravelCenters of America Inc. SEC Filings | MarketWatch

I still think they are using this money as a piggy bank to cover corporate expenses and publicly unknown financial problems.

If your company is doing well financially, why wouldn't you do these "refreshes" on a one-by-one basis out of existing cash flow instead of dramatically taking out $200 million dollars in debt?!? Because their cash flow already sucks and that giant wad of money is being piggy banked. At 8% that is $16 million dollars of additional yearly interest expense for a company that is already struggling. It doesn't make sense.