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

Discussion in 'Truck Stops' started by Deadwood, Dec 17, 2020.

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  2. buddyd157

    buddyd157 Road Train Member

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  3. fairshake

    fairshake Heavy Load Member

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    Well if they open some restaurants and fill in the empty spaces all over their locations, duh.
     
  4. Deadwood

    Deadwood Medium Load Member

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    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
     
    Last edited: Sep 8, 2021
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  5. Deadwood

    Deadwood Medium Load Member

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    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.
     
    Last edited: Sep 20, 2021
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  6. mjd4277

    mjd4277 Road Train Member

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    If they were actually doing well financially they wouldn’t have to borrow money to begin with IN THE FIRST PLACE!!;)
     
  7. Trucker Paul

    Trucker Paul Medium Load Member

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    No people should have freedom and giving in to all the mask and vaccine mandates doesn't help. This economy is messed now cause of the shutdowns last year. I just wish people knew when they're freedoms were being taken away.
     
  8. BunBaoPho88

    BunBaoPho88 Bobtail Member

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    Not surprised. I stopped at the TA in west Memphis yesterday to use the bathroom real quick and I thought maybe I'd get a bacon egg sando... Nope! Lol, idk what I expected but yeah.. it was in shambles. Understaffed- rude employees too. Idk why they just didn't like my presence it seemed. I left quickly so as not to be stabbed
     
  9. mjd4277

    mjd4277 Road Train Member

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    They’re probably pissed off because they have to work harder now that the two Pilots in Memphis are permanently closed.lol
     
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  10. streetglider

    streetglider Medium Load Member

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    says it all west Memphis
     
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