Soho House could suffer the same fate as WeWork, according to a new analysts’ report.
Less than three years since the private members’ club chain floated in New York at $14 a share, the price is now $5 a share. A business that was worth $2.8bn is now valued at $975.1m.
Now GlassHouse, which holds short positions and put options in Soho House, has published a report alleging that the company’s accounting practices are “eerily similar to WeWork’s”.
The report concludes that the target price for the company should be $0.
However, only 18% of share capital is freely floated, which exaggerates the scale of the price falls.
Soho House now has 41 clubs, three Ned hotels, a beachfront development in Mykonos and nine workspaces.
