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Soho House, the billion-dollar members' club, may be going private

The company's stock has plummeted over 50% since its IPO.

Soho House, the private members' club for the rich and famous, is looking to become a private company again after its stock has dropped over 50% since its IPO in 2021.

In an open letter to Soho shareholders, Soho's Chairman, Ron Burkle, said that he believes the problem is that the stock market is "not giving the company its true worth" and that it’s time for a change.

Some background on Soho House:

This exclusive club was originally founded in 1995 as a gathering place for people working in 'creative fields' to socialize, relax, and network – away from, you know, the poorer folk.

Soho House quickly became popular among wealthier circles, leading to a global expansion with clubs, hotels, and more in major cities like New York, Los Angeles, and Tel Aviv.

📸 Spectator

Eventually, in 2021, the company decided it was time to go public, as its parent company, Membership Collective Group, was worth around $2.8B.

Since IPO, they've lost around 65% of their entire valuation, with the company worth a ‘measly’ $1.1B today.

Fast forward to earlier this month, and reports have surfaced that Soho House is looking for potential buyers.

So, who's in the Soho sweepstakes?

As of now, private equity firm CC Capital Management seems to be firmly in the lead, being the only serious inquirer Soho House has told the public about.

Launched by Chinh Chu in 2016, CC Capital has invested in very successful companies like Getty Images, E2open, and UTZ Brands, among others.

And apparently, shareholders are on board with a potential sale, as evidenced by Soho stock rising 17% on the week, no doubt largely due to the news.

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