CC Capital is a suitor for club operator Soho House, sources say

By Thomson Reuters Mar 18, 2024 | 10:43 AM

By Anirban Sen

(Reuters) -CC Capital, the investment firm led by former Blackstone 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.

(Reporting by Anirban Sen in New York; Editing by Bill Berkrot)