CC Capital is a suitor for club operator Soho House, sources say
Reuters
Published Mar 18, 2024 12:00PM ET
Updated Mar 18, 2024 12:20PM ET
By Anirban Sen
(Reuters) -CC Capital, the investment firm led by former Blackstone (NYSE:BX) executive Chinh Chu, is one of the suitors in talks to take members club operator Soho House private, according to people familiar with the matter.
The talks with CC Capital have been on and off since late last year, and a deal is uncertain, the sources said. Soho said on Feb. 9 that it had formed a special board committee to explore taking the company private.
Soho Executive Chairman Ron Burkle's investment firm Yucaipa and Soho founder Nick Jones collectively own about three-quarters of the company.
Burkle in an open letter to Soho shareholders on Monday said he would be rolling his stake in a deal and that the stock market, which values Soho at about $1.8 billion, including debt, is not giving the company its true worth. Soho's stock has lost more than 55% of its value since the company floated its shares in New York in 2021.
Soho's shares jumped more than 20% on Monday morning after Reuters reported the talks with CC Capital.
The sources asked not to be identified because the matter is confidential. Soho House did not immediately respond to a request for comment, while CC Capital declined to comment.
Soho was started by Jones in 1995 on London's Greek Street above his restaurant, Cafe Boheme, as a meeting place for creative people. Its portfolio now includes Soho Houses in Amsterdam, Tel Aviv and Mumbai, The Ned in London and the Scorpios Beach Club in Mykonos.
In its most recent quarterly results announced last week, Soho House reported a loss of 29 cents per share and forecast full-year revenue below market expectations.
Launched by Chu in 2016, CC Capital has invested in companies such as Getty Images, software firm E2open, and salty snacks maker UTZ Brands.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.