"Soho House, a self-described members-only club for "creatives," announced in August that it's ending its yearslong stint as a publicly traded company. The London-based company has helped sparked a private club boom and has more than 40 houses across the globe, which have been the site of pivotal networking connections. While the company caters to the wealthy, its own finances have faltered."
"The London-based company has helped sparked a private club boom and has more than 40 houses across the globe, which have been the site of pivotal networking connections. While the company caters to the wealthy, its own finances have faltered. After going public in 2021, Soho House's stock dipped sharply as it struggled to turn a profit. It was valued at $2.7 billion"
"It was valued at $2.7 billion at the time of the August sale to investors, which include actor Ashton Kutcher and Apollo Global Management. Wenjia Han, an assistant professor of hospitality management at Purdue University Fort Wayne and coauthor of a paper on Soho House's strategic management, said that Soho House faces a "paradox." On the one hand, she said, the company wants to grow its brand and membership, but growing it too much risks undermining the exclusivity."
Soho House began in 1995 as a members-only club aimed at creatives and helped spark a global private-club boom. The London-based company operates more than 40 houses worldwide that serve as networking hubs for members from creative and corporate sectors. The company went public in 2021 but struggled to turn a profit, with its stock dipping sharply. In August investors including Ashton Kutcher and Apollo Global Management agreed to take the company private at a valuation of $2.7 billion. The company faces a strategic paradox: expanding membership risks eroding the exclusivity that underpins its brand and networking value.
Read at Business Insider
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