Soho House Faces Buyout Amidst Financial Struggles

Soho House & Co Inc. has received a buyout offer from a third-party consortium, proposing $9 per share, representing an 83% premium over its recent closing price. This offer has driven the company's shares up significantly, with early trading indicating a rise of over 60%, marking the highest level in more than a year. The proposal is supported by Ron Burkle, Executive Chairman, and his investment firm, The Yucaipa Companies, who have been seeking to take the company private due to its declining share value since its IPO in 2021. The company's board has formed an independent special committee to evaluate the offer, while the transaction is contingent on key shareholders rolling over their equity interests. Despite financial struggles, including never having posted a quarterly profit, Soho House reported a 16.7% increase in membership revenue and a 4.8% rise in total members year-over-year. The company has updated its FY24 revenue guidance to approximately $1.2 billion, slightly below analyst expectations.