Target Hospitality : U.S. Plans To End Services Agreement For South Texas Family Residential Center

(RTTNews) - Target Hospitality Corp. (TH) said it received notice that the U.S. government intends to terminate the existing South Texas Family Residential Center or STFRC services agreement with Target Hospitality's migrant programming partner or "STFRC Partner", effective on or about August 9, 2024.

Target provides facility and hospitality solutions to the STFRC Partner, through a lease and services agreement utilizing Target's owned modular assets. The STFRC Partner has provided notice to Target of their intention to terminate the STFRC Contract concurrent with the Effective Date.

Target noted that it will retain ownership of the assets enabling the Company to continue utilizing these modular solutions to support customer demand across its existing operating segments and other potential growth opportunities.