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May 1, 2020 12:15 PM, EDT

TravelCenters of America Reorganizes, Names Chief Information Officer

TravelCenters of America TravelCenters of America has undergone a reorganization since CEO Jon Pertchik took over in December. (TravelCenters of America Inc.)

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TravelCenters of America Inc. announced a companywide reorganization intended to improve operational efficiency and profitability, including the appointment of Sandy Rapp as chief information officer.

Rapp most recently served as chief information officer at the Timken Co. She has 30 years of experience in software development, consumer products, IT consulting, financial and manufacturing industries. She also will serve as senior vice president of information technology.

The Westlake, Ohio-based company also is reducing corporate headcount by about 130 and eliminating certain positions. These changes are expected to generate net annual savings of approximately $13.1 million in selling, general and administrative expenses.

Sandy Rapp

Rapp

The one-time cost associated with executing the reorganization plan is expected to be approximately $4.2 million.

“Since joining TA in December, I, together with TA’s senior-level management, and under the oversight and direction of TA’s board of directors, have been focused on developing a plan to cost-effectively optimize the strengths of our organization in order to transform the company,” CEO Jon Pertchik said in a release.

Key reorganizational initiatives include the creation of a centralized procurement group to drive economies of scale in pricing, provide increased leverage in vendor negotiations and ultimately lead to substantial purchasing savings and a streamlined operation.

Other key initiatives are focused on realizing cost savings and increased revenues, including merchandising in the convenience stores, over-the-road delivery, truck-repair training, and staffing and IT systems.

In the reorganization plan, Kevin Kelly was appointed senior vice president of hospitality for retail, restaurant and gaming. Most recently, he was president of travel hospitality at a subsidiary of Delaware North, consisting of more than 250 food service and retail locations in 19 airports, and oversaw the construction of 120 locations.

Dennis King was appointed senior vice president of corporate development. Most recently, he was an associate partner at McKinsey & Co.

TA has 21,000 employees in more than 260 locations in 44 states and Canada, principally under the TA, Petro Stopping Centers and TA Express brands.

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