Soho House takeover in doubt after funding scramble

Core Viewpoint - Soho House's $1.8 billion takeover deal is at risk due to MCR Hotels' inability to fund its $200 million commitment, leading to a significant drop in Soho House's stock price by over 13% [1][2]. Group 1: Takeover Deal - MCR Hotels, the leading consortium member for the takeover, is struggling to fulfill its financial pledge, raising concerns about the deal's completion [1][2]. - The planned shareholder vote for the takeover is set for January 9, 2025, as Soho House seeks alternative funding sources [3]. - The takeover was initially announced in August, with a deal price of $9 per share, representing an 83% premium over the prevailing share price at that time [5]. Group 2: Company Performance - Soho House's membership revenues reached $122.7 million, reflecting a 14% increase year-over-year, despite overall debt exceeding $700 million [8]. - The company has faced challenges as a public entity, with its stock price previously peaking at $13.15 when it was first listed in July 2021 [6]. Group 3: Membership and Expansion - The company has expanded from a single location to 46 clubs globally, but members have reported overcrowding issues [7]. - In response to membership growth, Soho House paused new applications in major cities in 2024 but resumed accepting members and opened new locations in 2025 [8]. Group 4: Strategic Intent - MCR's CEO described the investment in Soho House as a strategic opportunity to leverage operational expertise with a unique hospitality brand [9]. - Following MCR's withdrawal of funding, Soho House is exploring "numerous options" to secure the necessary capital, though success is not guaranteed [9].