#Kuwait Conglomerate Alshaya to Cut Egypt Operations as Economy Struggles - Bloomberg

Kuwait Conglomerate Alshaya to Cut Egypt Operations as Economy Struggles - Bloomberg

Kuwait-based retail franchise conglomerate Alshaya Group is curbing its operations in Egypt, citing “difficulties faced by overseas businesses” as the North African nation confronts its worst foreign-currency crunch in decades.

Alshaya, which runs local outlets of brands including Starbucks, Victoria’s Secret and H&M, will close 60 shops and lay off around 375 employees, it said in a statement to Bloomberg. The brands affected are The Body Shop, Mothercare, Debenhams, Pinkberry and Claire’s, according to an Alshaya spokesperson.

“As a result of the economic situation over the last three years and the difficulties faced by overseas businesses trading in Egypt, we have taken the very difficult decision to reduce our operations in the country,” Alshaya said in the statement. It didn’t give further details.

The closures spotlight the challenges businesses face in Egypt as officials struggle to revive a battered economy that’s seen three devaluations of its pound since early 2022. The government is in talks to potentially double a $3 billion International Monetary Fund loan program.