SACO denies liability after Astra Food seeks SAR 41.3M in arbitration over franchise rights agreement. Company says no operational impact, will file counterclaims.
Alpha Score of 49 reflects weak overall profile with moderate momentum, weak value, weak quality, moderate sentiment.
Saudi Company for Hardware (SACO) received a statement of claim from Astra Food Co. on Aug. 2, the company said in a filing to Tadawul. Astra Food seeks SAR 41.3 million through commercial arbitration over a franchise rights license agreement.
The claimant alleges a dispute over the duration and termination of the franchise deal, covering the bank guarantee and inventory, plus compensation claims. SACO said the claims are allegations only and do not represent any admission of liability. The company reserves its legal rights and plans to file its response and counterclaims before the Arbitral Tribunal.
The claim requests SAR 41.3 million, plus attorney fees equal to 5% of that sum and future arbitration costs. SACO said it does not expect the dispute to have a material operational impact. The company has retained legal counsel to handle the proceedings.
At this stage, SACO said it cannot estimate potential liability from the arbitration, which remains early. The company will disclose material developments in due course under applicable rules.
Drafted by a large language model from the source reporting linked above, then screened by automated publishing checks. It is not read by a journalist before publication. Some articles cite our Alpha Score. Verify prices and figures against the original source. Educational coverage, not personalized advice.