Soho House Owner Plans U.S. IPO for Members-Only Club Group
(Bloomberg) -- Membership Collective Group, the company behind the trendy Soho House members clubs, has filed for an initial public offering on the New York Stock Exchange.
The firm, which owns 28 Soho House clubs around the world, plans to list its Class A common stock under the symbol MCG, according to a statement Monday. Its portfolio also includes nine workspaces in London, Los Angeles and New York and home-decor retailer Soho Home.
Founded in 1995 in London’s Soho district as a venue for executives in the creative industries, the group now boasts about 119,000 members, according to a separate filing. New ventures including the Ned, the vast hotel and restaurant complex in the heart of the City of London, have broadened its appeal to other groups including finance workers.
JPMorgan Chase & Co., Morgan Stanley, Goldman Sachs Group Inc., Bank of America Corp. and HSBC Holdings Plc are joint book-running managers for the offering, while Citigroup Inc. and William Blair & Co. are co-managers.
The parent of Soho House has also caught on with the latest trend of allowing its customers to participate in the IPO. Gig-economy companies such as Airbnb Inc. and Uber Technologies Inc. deployed so-called directed share sales and Robinhood Markets Inc. is expected to do so in its upcoming listing.
MCG has set aside an unspecified portion of its IPO shares for its employees and members in the U.K. and the U.S. in a program it’s calling the “Community Offer,” according to Monday’s prospectus.
Coronavirus pandemic lockdowns hit the company hard, with revenue slumping to $384 million in 2020 from $642 million a year earlier, the filing shows. Still, total membership revenue grew during the period as sign-ups across other brands helped offset a small decline in Soho House customers. The company, which hasn’t turned a profit, lost $93 million in the first quarter of 2021 and $235 million in fiscal 2020.
The company warned of its indebtedness in the listing documents. As of early April, it had $826 million in debt, which it plans to pay down using the IPO proceeds.
MCG is majority owned by Ron Burkle’s Yucaipa Companies LLC, while founder and Chief Executive Officer Nick Jones and Richard Caring, who first invested in 2008, both own minority stakes.
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