Tihama subsidiary ends distribution agreement with Houghton Mifflin Harcourt

Logo of Tihama Advertising, Public Relations and Marketing Co.

Tihama Advertising, Public Relations and Marketing Co. announced that its subsidiary, Tihama Distribution Co., received a notice from Houghton Mifflin Harcourt dated Sept. 11, terminating the agreement between the two companies.

In a statement to Tadawul, the company said the termination was based on several reasons outlined in the notice, including the accumulation of outstanding amounts owed to Houghton Mifflin Harcourt for the period from January to May 2026, in accordance with the agreement’s terms and conditions; failure to achieve the agreed sales targets; and the previous executive management’s attempt to replace Tihama Distribution with another affiliated company to assume the role of exclusive distributor of Houghton Mifflin Harcourt’s products in Saudi Arabia.

The company said the cited reasons arose during the tenure of the previous executive management. Since the current management took over, it has taken several steps to address their impact and strengthen the company’s operations in the education sector, adding that it would announce any material developments in due course.

Tihama said the financial impact of the agreement’s termination cannot currently be determined, adding that it expects the termination to negatively affect its educational distribution business.

The company is currently preparing a study to assess the financial impact of the termination and will announce any material developments, disclosing any resulting impact, if any, in the financial statements for the relevant periods.

Tihama affirmed that it would take all necessary legal measures to safeguard its rights and those of its shareholders, while continuing to implement its plan to diversify its business sources in the educational distribution sector.

According to Argaam data, Tihama announced in February 2021 that its subsidiary, Tihama Distribution, had extended its exclusive distribution agreement with education technology company Houghton Mifflin Harcourt, a global provider of educational curricula from kindergarten through high school.

The agreement granted Tihama exclusive distribution rights for Houghton Mifflin Harcourt’s products in Saudi Arabia until December 2023, with a clause allowing for an extension until December 2025.

In January 2026, Tihama said it had renewed the agreement until December 2028, with a provision for automatic renewal in accordance with the agreement’s terms.