UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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For the transition period from |
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to |
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Commission File Number:
(Exact Name of Registrant as Specified in its Charter)
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(State or other jurisdiction of incorporation or organization) |
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(I.R.S. Employer Identification No.) |
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(Address of principal executive offices) |
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(Zip Code) |
Registrant’s telephone number, including area code: +44 (0)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
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Trading Symbol(s) |
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Name of each exchange on which registered |
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer |
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Non-accelerated filer |
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Smaller reporting company |
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Emerging growth company |
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No
As of December 17, 2024, the registrant had
Table of Contents
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PART I. |
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2 |
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Item 1. |
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2 |
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Unaudited Condensed Consolidated Balance Sheets as of September 29, 2024 and December 31, 2023 |
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Item 2. |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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Item 3. |
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Item 4. |
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72 |
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PART II. |
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Item 1. |
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73 |
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Item 1A. |
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Item 2. |
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74 |
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Item 3. |
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Item 4. |
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Item 5. |
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Item 6. |
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76 |
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i
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) that are based on our beliefs and assumptions and on information currently available to us. Forward-looking statements include information concerning our possible or assumed future results of operations and expenses, business strategies and plans, trends, market sizing, competitive position, industry environment, potential growth opportunities and product capabilities, among other things. Forward-looking statements include all statements that are not historical facts and, in some cases, can be identified by terms such as “aim,” “anticipates,” “believes,” “could,” “estimates,” “expects,” “goal,” “intends,” “may,” “plans,” “potential,” “predicts,” “projects,” “seeks,” “should,” “strive,” “will,” “would,” or similar expressions and the negatives of those terms.
As used in this report, any reference to ‘Soho House & Co Inc.’, ‘Soho House & Co’, ‘SHCO,’ ‘our company,’ ‘the Company,’ ‘us,’ ‘we’ and ‘our’ refers to Soho House & Co Inc., together with its consolidated subsidiaries.
Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including those described in “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and elsewhere in this report and in the section entitled “Risk Factors” in our Annual Report on Form 10-K as of and for the fiscal year ended December 31, 2023. Given these uncertainties, you should not place undue reliance on these forward-looking statements.
1
PART I-FINANCIAL INFORMATION
Item 1. Financial Statements.
Soho House & Co Inc.
Condensed Consolidated Balance Sheets
As of September 29, 2024 (Unaudited) and December 31, 2023
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As of |
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(in thousands, except for par value and share data) |
September 29, 2024 |
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December 31, 2023 |
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Assets |
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Current assets |
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Cash and cash equivalents |
$ |
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$ |
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Restricted cash |
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Accounts receivable, net |
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Inventories |
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Prepaid expenses and other current assets |
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Total current assets |
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Property and equipment, net |
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Operating lease assets |
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Goodwill |
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Other intangible assets, net |
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Equity method investments |
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Deferred tax assets |
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Other non-current assets |
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Total non-current assets |
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Total assets |
$ |
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$ |
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Liabilities and Shareholders’ Deficit |
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Current liabilities |
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Accounts payable |
$ |
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$ |
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Accrued liabilities |
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Current portion of deferred revenue |
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Indirect and employee taxes payable |
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Current portion of debt, net of debt issuance costs |
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Current portion of operating lease liabilities - sites trading less than one year |
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Current portion of operating lease liabilities - sites trading more than one year |
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Other current liabilities |
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Total current liabilities |
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Debt, net of current portion and debt issuance costs |
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Property mortgage loans, net of debt issuance costs |
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Operating lease liabilities, net of current portion - sites trading less than one year |
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Operating lease liabilities, net of current portion - sites trading more than one year |
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Finance lease liabilities |
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Financing obligation |
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Deferred revenue, net of current portion |
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Deferred tax liabilities |
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Other non-current tax liabilities |
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Total non-current liabilities |
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Total liabilities |
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The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
2
Soho House & Co Inc.
Condensed Consolidated Balance Sheets
As of September 29, 2024 (Unaudited) and December 31, 2023
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As of |
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(in thousands, except for par value and share data) |
September 29, 2024 |
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December 31, 2023 |
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Shareholders’ deficit |
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Class A common stock, $ |
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Additional paid-in capital |
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Accumulated deficit |
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( |
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( |
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Accumulated other comprehensive income |
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( |
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Treasury stock, at cost; |
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( |
) |
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( |
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Total shareholders’ deficit attributable to Soho House & Co Inc. |
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( |
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( |
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Noncontrolling interest |
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Total shareholders’ deficit |
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( |
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( |
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Total liabilities and shareholders’ deficit |
$ |
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$ |
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The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
3
Soho House & Co Inc.
Condensed Consolidated Statements of Operations (Unaudited)
For the 13 weeks and 39 weeks ended September 29, 2024 and October 1, 2023
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For the 13 Weeks Ended |
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For the 39 Weeks Ended |
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(in thousands except for per share data) |
September 29, 2024 |
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October 1, 2023 |
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September 29, 2024 |
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October 1, 2023 |
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Revenues |
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Membership revenues |
$ |
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$ |
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$ |
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$ |
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In-House revenues |
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Other revenues |
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Total revenues |
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Operating expenses |
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In-House operating expenses (exclusive of depreciation and amortization of $ |
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( |
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( |
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( |
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( |
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Other operating expenses (exclusive of depreciation and amortization of $ |
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( |
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( |
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( |
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( |
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General and administrative expenses (exclusive of depreciation and amortization of $ |
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( |
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( |
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( |
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( |
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Pre-opening expenses |
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( |
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( |
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( |
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( |
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Depreciation and amortization |
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( |
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( |
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( |
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( |
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Share-based compensation |
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( |
) |
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( |
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( |
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( |
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Foreign exchange gain (loss), net |
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( |
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Loss on impairment of long-lived assets |
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( |
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— |
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( |
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— |
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Other, net |
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( |
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( |
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( |
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( |
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Total operating expenses |
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( |
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( |
) |
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( |
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( |
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Operating income (loss) |
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( |
) |
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( |
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Other (expense) income |
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Interest expense, net |
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( |
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( |
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( |
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( |
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Gain (loss) on sale of property and other, net |
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( |
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( |
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Share of income (loss) of equity method investments |
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Total other expense, net |
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( |
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( |
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( |
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( |
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Income (loss) before income taxes |
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( |
) |
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( |
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( |
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Income tax (expense) benefit |
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( |
) |
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( |
) |
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( |
) |
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( |
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Net income (loss) |
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( |
) |
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( |
) |
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( |
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Net (income) loss attributable to noncontrolling interests |
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( |
) |
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( |
) |
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( |
) |
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Net income (loss) attributable to Soho House & Co Inc. |
$ |
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$ |
( |
) |
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$ |
( |
) |
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$ |
( |
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Net income (loss) per share attributable to Class A and Class B common stock |
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Basic |
$ |
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$ |
( |
) |
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$ |
( |
) |
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$ |
( |
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Diluted |
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( |
) |
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( |
) |
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( |
) |
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Weighted-average shares outstanding: |
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Basic |
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Diluted |
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The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
4
Soho House & Co Inc.
Condensed Consolidated Statements of Comprehensive Loss (Unaudited)
For the 13 weeks and 39 weeks ended September 29, 2024 and October 1, 2023
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For the 13 Weeks Ended |
For the 39 Weeks Ended |
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(in thousands) |
September 29, 2024 |
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October 1, 2023 |
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September 29, 2024 |
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October 1, 2023 |
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Net income (loss) |
$ |
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$ |
( |
) |
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$ |
( |
) |
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$ |
( |
) |
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Other comprehensive income (loss) |
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Foreign currency translation adjustment |
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( |
) |
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( |
) |
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( |
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Comprehensive loss |
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( |
) |
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( |
) |
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( |
) |
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( |
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(Income) loss attributable to noncontrolling interest |
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( |
) |
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( |
) |
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( |
) |
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Foreign currency translation adjustment attributable to non-controlling interest |
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( |
) |
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( |
) |
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Total comprehensive income (loss) attributable to Soho House & Co Inc. |
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
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$ |
( |
) |
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
5
Soho House & Co Inc.
Condensed Consolidated Statements of Changes in Shareholders’ Deficit (Unaudited)
(in thousands) |
Common Stock |
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Additional |
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Accumulated |
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Accumulated |
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Treasury Stock |
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Total Shareholders’ Deficit Attributable to Soho House & Co Inc. |
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Noncontrolling |
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Total |
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As of January 1, 2023 |
$ |
|
$ |
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$ |
( |
) |
$ |
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$ |
( |
) |
$ |
( |
) |
$ |
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$ |
( |
) |
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Net income (loss) |
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— |
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— |
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( |
) |
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— |
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— |
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( |
) |
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( |
) |
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( |
) |
Distributions to noncontrolling interests |
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— |
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— |
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— |
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— |
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— |
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— |
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( |
) |
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( |
) |
Non-cash share-based compensation (Note 11) |
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— |
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— |
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— |
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— |
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Net change in cumulative translation adjustment |
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— |
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— |
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— |
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( |
) |
|
— |
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( |
) |
|
( |
) |
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( |
) |
As of April 2, 2023 |
$ |
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$ |
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$ |
( |
) |
$ |
|
$ |
( |
) |
$ |
( |
) |
$ |
|
$ |
( |
) |
||||
Net income (loss) |
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— |
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— |
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( |
) |
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— |
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— |
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( |
) |
|
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( |
) |
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Non-cash share-based compensation (Note 11) |
|
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— |
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— |
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— |
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— |
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|
||||
Net change in cumulative translation adjustment |
|
— |
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— |
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— |
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( |
) |
|
— |
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( |
) |
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( |
) |
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As of July 2, 2023 |
$ |
|
$ |
|
$ |
( |
) |
$ |
|
$ |
( |
) |
$ |
( |
) |
$ |
|
$ |
( |
) |
||||
Net income (loss) |
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— |
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— |
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( |
) |
|
— |
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— |
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( |
) |
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( |
) |
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Shares repurchased (Note 12) |
|
— |
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— |
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— |
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— |
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( |
) |
|
( |
) |
|
— |
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( |
) |
Non-cash share-based compensation (Note 11) |
|
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— |
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— |
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— |
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— |
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Net change in cumulative translation adjustment |
|
— |
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— |
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— |
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|
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— |
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|
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( |
) |
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|||
As of October 1, 2023 |
$ |
|
$ |
|
$ |
( |
) |
$ |
|
$ |
( |
) |
$ |
( |
) |
$ |
|
$ |
( |
) |
||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
6
Soho House & Co Inc.
Condensed Consolidated Statements of Changes in Shareholders’ Deficit (Unaudited)
(in thousands) |
Common Stock |
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Additional |
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Accumulated |
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Accumulated |
|
Treasury Stock |
|
Total Shareholders’ Deficit Attributable to Soho House & Co Inc. |
|
Noncontrolling |
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Total |
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||||||||
As of December 31, 2023 |
$ |
|
$ |
|
$ |
( |
) |
$ |
|
$ |
( |
) |
$ |
( |
) |
$ |
|
$ |
( |
) |
||||
Net income (loss) |
|
— |
|
|
— |
|
|
( |
) |
|
— |
|
|
— |
|
|
( |
) |
|
( |
) |
|
( |
) |
Non-cash share-based compensation (Note 11) |
|
|
|
|
|
— |
|
|
— |
|
|
— |
|
|
|
|
— |
|
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|
||||
Net change in cumulative translation adjustment |
|
— |
|
|
— |
|
|
— |
|
|
|
|
— |
|
|
|
|
( |
) |
|
|
|||
As of March 31, 2024 |
$ |
|
$ |
|
$ |
( |
) |
$ |
|
$ |
( |
) |
$ |
( |
) |
$ |
|
$ |
( |
) |
||||
Net income (loss) |
|
— |
|
|
— |
|
|
( |
) |
|
— |
|
|
— |
|
|
( |
) |
|
( |
) |
|
( |
) |
Distributions to noncontrolling interests |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
( |
) |
|
( |
) |
Shares repurchased |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
( |
) |
|
( |
) |
|
— |
|
|
( |
) |
Non-cash share-based compensation (Note 11) |
|
|
|
|
|
— |
|
|
— |
|
|
— |
|
|
|
|
— |
|
|
|
||||
Net change in cumulative translation adjustment |
|
— |
|
|
— |
|
|
— |
|
|
( |
) |
|
— |
|
|
( |
) |
|
|
|
( |
) |
|
As of June 30, 2024 |
$ |
|
$ |
|
$ |
( |
) |
$ |
|
$ |
( |
) |
$ |
( |
) |
$ |
|
$ |
( |
) |
||||
Net income (loss) |
|
— |
|
|
— |
|
|
|
|
— |
|
|
— |
|
|
|
|
|
|
|
||||
Distributions to noncontrolling interests |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
( |
) |
|
( |
) |
Shares repurchased (Note 12) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
( |
) |
|
( |
) |
|
— |
|
|
( |
) |
Non-cash share-based compensation (Note 11) |
|
|
|
|
|
— |
|
|
— |
|
|
— |
|
|
|
|
— |
|
|
|
||||
Net change in cumulative translation adjustment |
|
— |
|
|
— |
|
|
— |
|
|
( |
) |
|
— |
|
|
( |
) |
|
|
|
( |
) |
|
As of September 29, 2024 |
$ |
|
$ |
|
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
$ |
|
$ |
( |
) |
|||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
7
Soho House & Co Inc.
Condensed Consolidated Statements of Cash Flows (Unaudited)
For the 39 weeks ended September 29, 2024 and October 1, 2023
|
For the 39 Weeks Ended |
|
|||||
(in thousands) |
September 29, 2024 |
|
|
October 1, 2023 |
|
||
Cash flows from operating activities |
|
|
|
|
|
||
Net income (loss) |
$ |
( |
) |
|
$ |
( |
) |
Adjustments to reconcile net loss to net cash provided by operating activities |
|
|
|
|
|
||
Depreciation and amortization |
|
|
|
|
|
||
Non-cash share-based compensation (Note 11) |
|
|
|
|
|
||
Deferred tax expense (benefit) |
|
( |
) |
|
|
( |
) |
(Gain) loss on sale of property and other, net |
|
|
|
|
( |
) |
|
Loss on impairment of long-lived assets |
|
|
|
|
|
||
Loss on impairment of intangible assets |
|
|
|
|
|
||
Share of (income) loss of equity method investments |
|
( |
) |
|
|
( |
) |
Amortization of debt issuance costs |
|
|
|
|
|
||
Loss on debt extinguishment |
|
|
|
|
|
||
PIK interest |
|
|
|
|
|
||
Distributions from equity method investees |
|
|
|
|
|
||
Foreign exchange (gain) loss, net |
|
( |
) |
|
|
( |
) |
Changes in assets and liabilities: |
|
|
|
|
|
||
Accounts receivable |
|
( |
) |
|
|
( |
) |
Inventories |
|
( |
) |
|
|
|
|
Operating leases, net |
|
( |
) |
|
|
|
|
Other operating assets |
|
( |
) |
|
|
( |
) |
Deferred revenue |
|
( |
) |
|
|
|
|
Accounts payable and accrued and other liabilities |
|
|
|
|
|
||
Net cash provided by operating activities |
|
|
|
|
|
||
Cash flows from investing activities |
|
|
|
|
|
||
Purchase of property and equipment |
|
( |
) |
|
|
( |
) |
Proceeds from sale of assets |
|
|
|
|
|
||
Purchase of intangible assets |
|
( |
) |
|
|
( |
) |
Repayment of capital investment from equity method investee |
|
|
|
|
|
||
Property and casualty insurance proceeds received |
|
|
|
|
|
||
Net cash used in investing activities |
|
( |
) |
|
|
( |
) |
Cash flows from financing activities |
|
|
|
|
|
||
Repayment of borrowings (Note 9) |
|
( |
) |
|
|
( |
) |
Payment for debt extinguishment costs (Note 9) |
|
|
|
|
( |
) |
|
Proceeds from borrowings (Note 9) |
|
|
|
|
|
||
Payments for debt issuance costs |
|
|
|
|
( |
) |
|
Principal payments on finance leases |
|
( |
) |
|
|
( |
) |
Distributions to non-controlling interest |
|
( |
) |
|
|
( |
) |
Purchase of treasury stock (Note 12) |
|
( |
) |
|
|
( |
) |
Net cash (used in) provided by financing activities |
|
( |
) |
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents, and restricted cash |
|
|
|
|
( |
) |
|
Net (decrease) increase in cash and cash equivalents, and restricted cash |
|
( |
) |
|
|
( |
) |
Cash, cash equivalents and restricted cash |
|
|
|
|
|
||
Beginning of period |
|
|
|
|
|
||
End of period |
$ |
|
|
$ |
|
||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
8
Soho House & Co Inc.
Condensed Consolidated Statements of Cash Flows (Unaudited)
For the 39 weeks ended September 29, 2024 and October 1, 2023
|
For the 39 Weeks Ended |
|
|||||
(in thousands) |
September 29, 2024 |
|
|
October 1, 2023 |
|
||
Cash, cash equivalents and restricted cash are comprised of: |
|
|
|
|
|
||
Cash and cash equivalents |
|
|
|
|
|
||
Restricted cash |
|
|
|
|
|
||
Cash, cash equivalents and restricted cash as of September 29, 2024 and October 1, 2023 |
$ |
|
|
$ |
|
||
Supplemental disclosures: |
|
|
|
|
|
||
Cash paid for interest, net of capitalized interest |
$ |
|
|
$ |
|
||
Cash paid for income taxes |
|
|
|
|
|
||
Supplemental disclosures of non-cash investing and financing activities: |
|
|
|
|
|
||
Operating lease assets obtained in exchange for new operating lease liabilities |
|
|
|
|
|
||
Acquisitions of property and equipment under finance leases |
|
|
|
|
|
||
Prepaid capital expenditures |
|
|
|
|
|
||
Accrued capital expenditures |
|
|
|
|
|
||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
9
Soho House & Co Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited)
As of September 29, 2024 and December 31, 2023 and for the 13 weeks and 39 weeks ended September 29, 2024 and October 1, 2023
Soho House & Co Inc. is a global membership platform of physical and digital spaces that connects a vibrant, diverse group of members from across the world. Our members engage with us through our global portfolio of 45 Soho Houses, 8 Soho Works Clubs, The Ned hotel sites, The LINE and Saguaro hotels, Scorpios Beach Clubs, Soho Home and our digital channels.
The consolidated entity presented is referred to herein as “SHCO”, “we”, “us”, “our”, or the “Company”, as the context requires and unless otherwise noted.
Basis of Presentation
The consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for reporting interim information on Form 10-Q. The preparation of the financial statements in conformity with US GAAP requires the use of estimates, judgments and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenues and expenses during the periods presented. The Company's significant estimates relate to the valuation of financial instruments, equity method investments, the measurement of goodwill and intangible assets, contingent liabilities, income taxes, leases, and long-lived assets. Although the estimates have been prepared using management's best judgment and management believes that the estimates used are reasonable, actual results could differ from those estimates and such differences could be material.
We operate on a fiscal year calendar consisting of a 52-or 53-week period ending on the last Sunday in December or the first Sunday in January of the next calendar year. In a 52-week fiscal year, each quarter contains 13 weeks of operations; in a 53-week fiscal year, each of the first, second and third quarters includes 13 weeks of operations and the fourth quarter includes 14 weeks of operations.
Certain information and footnote disclosures normally included in financial statements prepared in accordance with US GAAP have been omitted in accordance with the rules and regulations of the SEC. The year-end condensed consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by US GAAP. The unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes thereto, included in the Company’s Annual Report on Form 10-K as of and for the fiscal year ended December 31, 2023.
The results of operations for the 13- and 39-week periods ended September 29, 2024 and October 1, 2023 are not necessarily indicative of the operating results for the full fiscal year or any future periods.
Going Concern
The accompanying unaudited condensed consolidated financial statements of the Company have been prepared assuming the Company will continue as a going concern. The going concern basis of presentation assumes that we will continue in operation for at least a period of 12 months after the date these financial statements are issued, and contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.
We have experienced net losses and significant cash outflows over the past years as we develop our Houses. During the 13 weeks and 39 weeks ended September 29, 2024, the Company reported a consolidated net income of $
In assessing the going concern basis of preparation of the unaudited condensed consolidated financial statements for the 13 weeks and 39 weeks ended September 29, 2024, we have taken into consideration detailed cash flow forecasts for the Company, the Company’s forecast compliance with bank covenants, and the timing of debt commitments within 12 months of the approval of these financial statements, and the continued availability of committed and accessible working capital to the Company.
We have considered current global economic and political uncertainties, specifically including inflationary pressures on consumables purchased and wages, and the Company has factored these in when it undertook an assessment of the cash flow forecasts covering a period of at least
Based on the above, the consolidated financial statements have been presented on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. Accordingly, we continue to adopt the going concern basis in preparing the unaudited condensed consolidated financial statements for the 13 weeks and 39 weeks ended September 29, 2024.
Comprehensive Loss
The entire balance of accumulated other comprehensive loss, net of income taxes, is related to the cumulative translation adjustment in each of the periods presented. The changes in the balance of accumulated other comprehensive income loss, net of income tax, are attributable solely to the net change in the cumulative translation adjustment in each of the periods presented.
10
Soho House & Co Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited)
As of September 29, 2024 and December 31, 2023 and for the 13 weeks and 39 weeks ended September 29, 2024 and October 1, 2023
Impairment of Other Long-Lived Assets
The Company recognized $
In the 13 weeks ended September 29, 2024, the Company identified a triggering impairment event due to the continued challenges in the cost of real estate and the decreased performance of various Soho Works locations in the USA. The Company performed an impairment analysis on four Soho Work sites in the United States. As a result of the third quarter of 2024 analysis, a $
The primary assumptions, which requires significant level of judgement, that affects the undiscounted cash flows determination is management's estimate of future revenues, operating margins, economic conditions and changes in the operating environment. The forecasts used in the impairment assessments was developed by management based on projected revenues derived largely from forecasted member attendance. Management also makes estimates on the expected costs and the expected operating lease costs. Changes in these assumptions could have a significant impact on the recoverability of the assets and may result in additional impairment charges.
Changes in the membership, operating margins and economic growth and the contracted operating rental costs beyond what has already been assumed in the assessments could cause management to revise the forecast and assumptions. Unfavorable revisions to these assumptions or estimates could possibly result in further impairment of some or all of the assets.
Recently Adopted Accounting Standards
In June 2020, the FASB issued ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity. The Company adopted ASU 2020-06 effective January 1, 2024 on a prospective basis. The adoption of ASU 2020-06 did not have a material effect on the Company’s consolidated financial statements and related disclosures.
In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. The ASU requires entities to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC 606, Revenue from Contracts with Customers. The Company adopted ASU 2024-02 effective January 1, 2024 on a prospective basis. The adoption of ASU 2024-02 did not have a material effect on the Company’s consolidated financial statements and related disclosures as no business combination transactions have taken place since the Company adopted ASU 2024-02.
In August 2023, the FASB issues ASU 2023-02, Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method. The ASU permits reporting entities to elect to account for their tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. The Company adopted ASU 2023-02 in Q1 2024. The adoption of ASU 2023-02 did not have a material effect on the Company’s consolidated financial statements and related disclosures.
Future Accounting Standards
In October 2023, the FASB issued ASU No 2023-06, “Disclosure Agreements – Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative” (“ASU 2023-06”). ASU 2023-06 will align the disclosure and presentation requirements in the FASB Accounting Standards Codification with the SEC’s regulations. The amendments in ASU 2023-06 will be applied prospectively and are effective when the SEC removes the related requirements from Regulations S-X or S-K. Any amendments the SEC does not remove by June 30, 2027 will not be effective. The Company’s is currently evaluating the impact of this ASU on its consolidated financial statements and related disclosures.
In November 2023, the FASB issued ASU No 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”). ASU 2023-07 expands disclosures about a public entity’s reportable segments and requires more enhanced information about a reportable segment’s expenses, interim segment profit or loss, and how a public entity’s chief operating decision maker uses reported segment profit or loss information in assessing segment performance and allocating resources. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. ASU 2023-07 should be applied retrospectively to all prior periods presented in the financial statements. The Company’s is currently evaluating the impact of this ASU on its consolidated financial statements and related disclosures.
In December 2023, the FASB issued ASU No 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”). ASU 2023-09 expands disclosures in the rate reconciliation and requires disclosure of income taxes paid by jurisdiction. ASU 2023-09 is effective for fiscal years beginning after December 15, 2025 or the interim period in which the Company loses emerging growth company status. Early adoption is permitted. ASU 2023-09 should be applied prospectively; however, retrospective application is permitted. The Company’s is currently evaluating the impact of this ASU on its consolidated financial statements and related disclosures.
In March 2024, the FASB issued ASU No 2024-01, "Compensation - Stock Compensation (Topic 718): Scope application for profits interest and similar awards" ("ASU 2024-01"). This update adds an illustrative example to demonstrate how an entity should apply the scope guidance to determine whether profits interest and similar awards ("profits interest awards") should be accounted for in accordance with Topic 718. ASU 2024-01 is effective for fiscal years beginning after December 15, 2025 or the interim period in which the Company loses emerging growth company
11
Soho House & Co Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited)
As of September 29, 2024 and December 31, 2023 and for the 13 weeks and 39 weeks ended September 29, 2024 and October 1, 2023
status. Early adoption is permitted. ASU 2024-01 should be applied retrospectively to all prior periods presented in the financial statements or prospectively. The Company’s is currently evaluating the impact of this ASU on its consolidated financial statements and related disclosures.
In March 2024, the FASB issued ASU No 2024-02, “Codification Improvements - Amendments to Remove References to the Concepts Statements” (“ASU 2024-02”). ASU 2024-02 removes references to various Concepts Statements. In most instances, the references are extraneous and not required to understand or apply the guidance. ASU 2024-02 is effective for fiscal years beginning after December 15, 2025 or the interim period in which the Company loses emerging growth company status. ASU 2024-02 can be applied prospectively or retrospectively. The Company’s is currently evaluating the impact of this ASU on its consolidated financial statements and related disclosures.
In November 2024, the FASB issued ASU No 2024-03, “Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures” ("ASU 2024-03"). ASU 2024-03 requires disclosure in the notes to the financial statements of specified information about certain costs and expenses. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026 and for interim periods within fiscal years beginning after December 15, 2027. ASU 2024-03 should be applied either prospectively to financial statements issued for reporting periods after the effective date of this ASU or retrospectively to any or all prior periods presented in the financial statements. The Company is currently evaluating the impact of ASU 2024-03 on its disclosures.
Revision of Prior Period Financial Statements
On November 6, 2024, the Company announced that it is replacing legacy systems with a new modernized finance Enterprise Resource Planning (“ERP”) system to support its long-term success, controls, and strategic growth initiatives. In preparation for the systems upgrade, the Company has undertaken a number of initiatives including continuing to work with external consultants to support the review and assist in strengthening its internal controls and processes including reconciliations and completing the implementation of a new ERP system for its retail business in August 2024. Further, the Company is focused on continuing to bolster its Transformation and Finance teams including by hiring a Chief Transformation Officer (November 2024) to lead the ERP system implementation and hiring a number of personnel with a higher level of knowledge and experience with the application of US GAAP, internal audit and SOX compliance.
During the 13-weeks period ended September 29, 2024, through the performance of these activities, management identified misstatements, as well as confirmed the financial statement impacts of previously identified uncorrected immaterial misstatements, in its previously issued consolidated financial statements as of and for the 52-week period ended December 31, 2023 (“Fiscal 2023”) and January 1, 2023 (“Fiscal 2022”); the unaudited condensed consolidated financial statements as of and for the 13-week periods ended March 31, 2024 (“Q1 2024”) and April 2, 2023 (“Q1 2023”); the unaudited condensed consolidated financial statements as of and for the 13-week and 26-week periods ended June 30, 2024 (“Q2 2024”) and July 2, 2023 (“Q2 2023”); and the unaudited condensed consolidated financial statements as of and for the 13-week and 39-week periods ended October 1, 2023 (“Q3 2023”). The Company believes the misstatements identified through the performance of the activities above is related to manual processes and the existing material weaknesses in our control over financial reporting as described in the most recently filed Form 10-K for the fiscal year ended December 31, 2023.
The Company assessed the materiality of the errors, both individually and in aggregate, including as out of period corrections in the current period as well as corrections to impacted prior period consolidated financial statements, on a qualitative and quantitative basis in accordance with SEC Staff Accounting Bulletins (“SAB”) No. 99, Materiality, and No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements, codified in Accounting Standards Codification (“ASC”) Topic 250, Accounting Changes and Error Corrections. While correction of these adjustments as out of period corrections would be material in aggregate to the current period, the Company determined the impacts of these misstatements were not material to the financial statements for all prior periods identified and has accordingly revised the comparative amounts presented. For comparative purposes, the Company has made corrections to the consolidated financial statements and applicable notes for the prior periods presented in this Form 10-Q. Refer to Note 17, Revision of Prior Period Financial Statements, for additional information on the misstatements identified and quantification of the impact of correcting the misstatements.
12
Soho House & Co Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited)
As of September 29, 2024 and December 31, 2023 and for the 13 weeks and 39 weeks ended September 29, 2024 and October 1, 2023
The Company determined that it is the primary beneficiary of the following material variable interest entities (“VIEs”):
Ned-Soho House, LLP
The Ned-Soho House, LLP joint venture maintains a management agreement to operate The Ned hotel in London, which is owned by unconsolidated related parties to the Company (Refer to Note 16, Related Party Transactions for further information). Management fees are recognized in other revenues in the consolidated statements of operations. The Company has a greater economic interest in Ned-Soho House, LLP as compared to its related party venture partner and therefore the Company is determined to be the primary beneficiary.
Soho Works Limited
|
As of |
|
|||||
(in thousands) |
September 29, 2024 |
|
|
December 31, 2023 |
|
||
Cash and cash equivalents |
$ |
|
|
$ |
|
||
Accounts receivable |
|
|
|
|
|
||
Inventories |
|
|
|
|
|
||
Prepaid expenses and other current assets |
|
|
|
|
|
||
Total current assets |
|
|
|
|
|
||
Property and equipment, net |
|
|
|
|
|
||
Operating lease assets |
|
|
|
|
|
||
Other intangible assets, net |
|
|
|
|
|
||
Other non-current assets |
|
|
|
|
|
||
Total assets |
|
|
|
|
|
||
Accounts payable |
|
|
|
|
|
||
Accrued liabilities |
|
|
|
|
|
||
Indirect and employee taxes payable |
|
|
|
|
|
||
Current portion of debt, net of debt issuance costs |
|
|
|
|
|
||
Current portion of operating lease liabilities - sites trading more than one year |
|
|
|
|
|
||
Other current liabilities |
|
|
|
|
|
||
Total current liabilities |
|
|
|
|
|
||
Operating lease liabilities, net of current portion - sites trading more than one year |
|
|
|
|
|
||
Total liabilities |
|
|
|
|
|
||
Net assets (liabilities) |
$ |
( |
) |
|
$ |
( |
) |
The Company maintains a portfolio of equity method investments owned through noncontrolling interests in investments with one or more partners. During the 39 weeks ended September 29, 2024, the Company received a payment of capital of $
Under applicable guidance for VIEs, the Company determined that its investments in the following entities are VIEs:
Toronto Joint Venture
On March 28, 2012, the Company and two unrelated investors (“Toronto Partners”) formed Soho House Toronto to own and operate a House in Toronto, Canada. The Company is responsible for managing the development and operations of the property with key operating decisions requiring joint approval with the Toronto Partners.
56-60 Redchurch Street, London Joint Venture
On July 6, 2015, the Company and a related party investor (“Raycliff Partner”) formed Raycliff Red LLP (“Club Row Rooms”) to develop and operate a hotel at 58-60 Redchurch Street intended to provide additional members’ accommodation to the nearby Shoreditch House in London. This
13
Soho House & Co Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited)
As of September 29, 2024 and December 31, 2023 and for the 13 weeks and 39 weeks ended September 29, 2024 and October 1, 2023
was later extended to include 56 Redchurch Street under the same terms. The Company is responsible for managing the operations of the property and the Raycliff Partner is responsible for managing the building.
The Company concluded that it is not the primary beneficiary of the Soho House Toronto or 56-60 Redchurch Street, London VIEs in any of the periods presented, as its joint venture partners have the power to participate in making decisions related to the majority of significant activities of each investee. Accordingly, the Company concluded that application of the equity method of accounting is appropriate for these investees.
Summarized Financial Information
The following table presents summarized financial information for all unconsolidated equity method investees. The Company’s maximum exposure to losses related to its equity method investments is limited to its ownership interests.
|
For the 13 Weeks Ended |
|
|
For the 39 Weeks Ended |
|
||||||||||
(in thousands) |
September 29, 2024 |
|
|
October 1, 2023 |
|
|
September 29, 2024 |
|
|
October 1, 2023 |
|
||||
Revenues |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Operating income (loss) |
|
|
|
|
|
|
|
|
|
|
|
||||
Net income (loss)(1) |
|
|
|
|
|
|
|
|
|
|
|
||||
The Company has entered into various lease agreements for its Houses, hotels, restaurants, spas and other properties across The Americas, Europe, and Asia, which includes
The maturity of the Company’s operating and finance lease liabilities as of September 29, 2024 is as follows:
(in thousands) |
Operating |
|
|
Finance |
|
||
Undiscounted lease payments |
|
|
|
|
|
||
Remainder of 2024 |
$ |
|
|
$ |
|
||
2025 |
|
|
|
|
|
||
2026 |
|
|
|
|
|
||
2027 |
|
|
|
|
|
||
2028 |
|
|
|
|
|
||
Thereafter |
|
|
|
|
|
||
Total undiscounted lease payments |
|
|
|
|
|
||
Present value adjustment |
|
( |
) |
|
|
( |
) |
Total net lease liabilities |
$ |
|
|
$ |
|
||
Certain lease agreements include variable lease payments that, in the future, will vary based on changes in the local inflation rates, market rate rents, or business revenues of the leased premises.
Straight-line rent expense recognized as part of In-House operating expenses for operating leases was $
For the 13 weeks ended September 29, 2024 and October 1, 2023, the Company recognized amortization expense related to the right-of-use asset for finance leases of $
New Houses typically have a maturation profile that commences sometime after the lease commencement date used in the determination of the lease accounting in accordance with Topic 842. The unaudited condensed consolidated balance sheets set out the operating lease liabilities split between
14
Soho House & Co Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited)
As of September 29, 2024 and December 31, 2023 and for the 13 weeks and 39 weeks ended September 29, 2024 and October 1, 2023
sites trading less than one year and sites trading more than one year. “Sites trading less than one year” and “sites trading more than one year” reference sites that have been open (as measured from the date the site first accepted a paying guest) for a period less than one year from the balance sheet date and those that have been open for a period longer than one year from the balance sheet date.
The Company currently leases five properties from related parties as described in Note 16, Related Party Transactions. The five properties, as of September 29, 2024 and eight properties, as of December 31, 2023 have a combined right-of-use asset of $
The following information represents supplemental disclosure for the statement of cash flows related to operating and finance leases:
|
For the 39 Weeks Ended |
|
|||||
(in thousands) |
September 29, 2024 |
|
|
October 1, 2023 |
|
||
Cash flows from operating activities: |
|
|
|
|
|
||
Cash paid for amounts included in the measurement of lease liabilities: |
|
|
|
|
|
||
Operating cash flows from operating leases |
$ |
( |
) |
|
$ |
( |
) |
Interest payments for finance leases |
|
( |
) |
|
|
( |
) |
Cash flows from financing activities: |
|
|
|
|
|
||
Principal payments for finance leases |
$ |
( |
) |
|
$ |
( |
) |
Supplemental disclosures of non-cash investing and financing activities: |
|
|
|
|
|
||
Operating lease assets obtained in exchange for new operating lease liabilities |
$ |
|
|
$ |
|
||
Acquisitions of property and equipment under finance leases |
$ |
|
|
$ |
|
||
The following summarizes additional information related to operating and finance leases:
|
As of |
||
|
September 29, 2024 |
|
October 1, 2023 |
Weighted-average remaining lease term |
|
|
|
Finance leases |
|
||
Operating leases |
|
||
Weighted-average discount rate |
|
|
|
Finance leases |
|
||
Operating leases |
|
||
As of September 29, 2024, the Company has entered into 11 operating lease agreements that are signed but have not commenced. Of these, 9 relate to Houses, hotels, restaurants, and other properties that are in various stages of construction by the landlord. Refer to Note 16, Related Party Transactions for further information on the 2 lease agreements not commenced with related parties. The Company will determine the classification as of the lease commencement date, but currently expects these under construction leases to be operating leases. Soho House Design (“SHD”) is involved to varying degrees in the design of these leased properties under construction. For certain of these leases, the SHD team is acting as the construction manager on behalf of the landlord. The Company does not control the underlying assets under construction. Pending significant completion of all landlord improvements and final execution of the related lease, the Company expects these leases to commence in fiscal years ending 2024, 2025, 2026 and 2028. The Company estimates the total undiscounted lease payments for the leases commencing in fiscal years ended 2024, 2025, 2026 and 2028 will be $
The following summarizes the Company’s estimated future undiscounted lease payments, net of lease incentives, for current leases signed but not commenced, including properties where the SHD team is acting as the construction manager as of September 29, 2024:
15
Soho House & Co Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited)
As of September 29, 2024 and December 31, 2023 and for the 13 weeks and 39 weeks ended September 29, 2024 and October 1, 2023
(in thousands) |
Operating |
|
|
Fiscal year ended |
Construction |
|
|
Estimated total undiscounted lease payments, net of lease incentives |
|
|
|
Remainder of 2024 |
$ |
|
|
2025 |
|
|
|
2026 |
|
|
|
2027 |
|
|
|
2028 |
|
|
|
Thereafter |
|
|
|
Total undiscounted lease payments for leases signed but not commenced, net of lease incentives |
$ |
|
|
Disaggregated revenue disclosures for the 13 weeks and 39 weeks ended September 29, 2024 and October 1, 2023 are included in Note 15, Segments. Revenue from membership fees, legacy one-time registration fees, House Introduction Credits, design & build-out contracts and exclusivity & incentive fee contracts are the primary arrangements for which revenue is recognized over time.
The following table includes estimated revenues expected to be recognized in the future related to performance obligations that were unsatisfied (or partially unsatisfied) at the end of the reporting period ending September 29, 2024:
(in thousands) |
Next twelve |
|
|
Future periods |
|
||
Revenue recognized over time |
$ |
|
|
$ |
|
||
Total future revenues |
$ |
|
|
$ |
|
||
All consideration from contracts with customers is included in the amounts presented above.
The following table provides information about contract receivables, contract assets and contract liabilities from contracts with customers:
|
As of |
|
|||||
(in thousands) |
September 29, 2024 |
|
|
December 31, 2023 |
|
||
Contract receivables |
$ |
|
|
$ |
|
||
Contract assets |
|
|
|
|
|
||
Contract liabilities |
|
|
|
|
|
||
Contract receivables consist solely of Accounts receivable, net which is comprised of amounts due from customers and partners including amounts owed from sites operated under management contracts, amounts billed under design & build-out contracts and amounts due from retail wholesale partners.
Contract assets consist of accrued unbilled income related to design & build-out contracts and are recognized in prepaid expenses and other assets on the unaudited condensed consolidated balance sheets.
Contract liabilities include deferred membership revenue, hotel deposits (which are presented in accrued liabilities on the unaudited condensed consolidated balance sheets), and gift vouchers. Revenue recognized that was included in the contract liabilities balance as of the beginning of the period was $
Inventories consist of raw materials, service stock and supplies (primarily food and beverage) and finished goods (primarily for sale in our Retail business) which are externally sourced. Raw materials and service stock and supplies totaled $
16
Soho House & Co Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited)
As of September 29, 2024 and December 31, 2023 and for the 13 weeks and 39 weeks ended September 29, 2024 and October 1, 2023
The Company recognized accrued revenue relating to transactions with related parties amounting to less than $
The table below presents the components of prepaid expenses and other current assets.
|
As of |
|
|||||
(in thousands) |
September 29, 2024 |
|
|
December 31, 2023 |
|
||
Amounts owed by equity method investees |
$ |
|
|
$ |
|
||
Prepayments and accrued income |
|
|
|
|
|
||
Contract assets |
|
|
|
|
|
||
Other receivables |
|
|
|
|
|
||
Inventory supplier advances |
|
|
|
|
|
||
Total prepaid expenses and other current assets |
$ |
|
|
$ |
|
||
The table below presents the components of accrued liabilities.
|
As of |
|
|||||
(in thousands) |
September 29, 2024 |
|
|
December 31, 2023 |
|
||
Accrued interest |
$ |
|
|
$ |
|
||
Hotel deposits |
|
|
|
|
|
||
Trade and other accruals |
|
|
|
|
|
||
Total accrued liabilities |
$ |
|
|
$ |
|
||
Debt balances, net of debt issuance costs, are as follows:
|
As of |
|
|||||
(in thousands) |
September 29, 2024 |
|
|
December 31, 2023 |
|
||
Senior Secured Notes, interest at |
$ |
|
|
$ |
|
||
Soho Works Limited loans, unsecured, |
$ |
|
|
|
|
||
Other loans (see additional description below) |
|
|
|
|
|
||
|
|
|
|
|
|
||
Less: Current portion of long-term debt |
|
( |
) |
|
|
( |
) |
Total long-term debt, net of current portion |
$ |
|
|
$ |
|
||
Property mortgage loans, net of debt issuance costs, are as follows:
|
As of |
|
|||||
(in thousands) |
September 29, 2024 |
|
|
December 31, 2023 |
|
||
Term loan, interest at |
$ |
|
|
$ |
|
||
Total property mortgage loans |
$ |
|
|
$ |
|
||
The weighted-average interest rate on fixed rate borrowings was
Debt
17
Soho House & Co Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited)
As of September 29, 2024 and December 31, 2023 and for the 13 weeks and 39 weeks ended September 29, 2024 and October 1, 2023
The descriptions below show the financial instrument amounts in the currency of denomination with USD equivalent in parentheses, where applicable, translated using the exchange rates in effect at the time of the respective transaction.
In 2017, Soho Works Limited entered into a term loan facility agreement. The SWL loan bears interest at
On March 31, 2021, Soho House Bond Limited issued pursuant to a Notes Purchase Agreement senior secured notes, which were subscribed for by certain funds managed, sponsored or advised by Goldman Sachs & Co. LLC or its affiliates, in aggregate amounts equal to $
The other loans consist of the following:
|
Currency |
|
Maturity date |
|
Principal |
|
|
Applicable |
|
||
Dean Street Loan |
Great Britain pound sterling |
|
|
|
|
|
|
% |
|||
Copenhagen loan |
Danish krone |
|
|
|
|
|
|
% |
|||
Greek Street loan |
Great Britain pound sterling |
|
|
|
|
|
|
% |
|||
Compagnie de Phalsbourg credit facility |
Euro |
|
|
|
|
|
|
% |
|||
Greek government loan |
Euro |
|
|
|
|
|
|
% |
|||
Property Mortgage Loans
In March 2014, the Company completed a freehold property acquisition of the Soho Beach House Miami Property. In May 2023, the Company refinanced the existing term loan of $
The Company incurred interest expense of $
Future Principal Payments
The following table presents future principal payments for the Company’s debt and property mortgage loans as of September 29, 2024:
18
Soho House & Co Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited)
As of September 29, 2024 and December 31, 2023 and for the 13 weeks and 39 weeks ended September 29, 2024 and October 1, 2023
(in thousands) |
|
|
|
Remainder of 2024 |
$ |
|
|
2025 |
|
|
|
2026 |
|
|
|
2027 |
|
|
|
2028 |
|
|
|
Thereafter |
|
|
|
|
$ |
|
|
Recurring and Non-recurring Fair Value Measurements
There were
Fair Value of Financial Instruments
The Company believes the carrying values of its financial instruments related to current assets and liabilities approximate fair value due to short-term maturities.
The Company has estimated the fair value of the Senior Secured Notes and the property mortgage loans as of September 29, 2024 and December 31, 2023 using a discounted cash flow analysis. The fair value of the other non-current debt is estimated as of September 29, 2024 and December 31, 2023 using a discounted cash flow analysis, except for the Dean Street Loan and the Copenhagen Loan where fair value is estimated to be equal to the current carrying value of each instrument as of September 29, 2024 based on a comparison of each instrument's contractual terms to current market terms. The Company does not believe that the use of different market inputs would have resulted in a materially different fair value of debt as of September 29, 2024 and December 31, 2023.
The following table presents the estimated fair values (all of which are Level 3 fair value measurements) of the Company’s debt instruments with maturity dates in 2025 and thereafter:
(in thousands) |
Carrying Value |
|
|
Fair Value |
|
||
September 29, 2024 |
|
|
|
|
|
||
Senior Secured Notes |
$ |
|
|
$ |
|
||
Property mortgage loans |
|
|
|
|
|
||
Other loans |
|
|
|
|
|
||
|
$ |
|
|
$ |
|
||
(in thousands) |
Carrying Value |
|
|
Fair Value |
|
||
December 31, 2023 |
|
|
|
|
|
||
Senior Secured Notes |
$ |
|
|
$ |
|
||
Property mortgage loans |
|
|
|
|
|
||
Other loans |
|
|
|
|
|
||
|
$ |
|
|
$ |
|
||
The carrying values of the Company’s other non-current liabilities and non-current assets approximate their fair values.
Equity and incentive plans
The Company operates two equity and incentive plans for the benefit of its employees and directors. In August 2020, the Company established the 2020 Equity and Incentive Plan (the “2020 Plan”) under which SHHL Share Appreciation Rights (“SARs”) and SHHL Growth Shares were issued to certain employees.
In July 2021, the Company established its 2021 Equity and Incentive Plan (the “2021 Plan”). The 2021 Plan allows for grants of non-qualified stock options, SARs, Restricted Stock Units ("RSUs") and Performance Stock Units ("PSUs"). The PSUs generally vest (i) upon the completion of a minimum service period and (ii) the Company's achievement of certain performance goals established at grant. There were
Modifications of awards made under the plans
19
Soho House & Co Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited)
As of September 29, 2024 and December 31, 2023 and for the 13 weeks and 39 weeks ended September 29, 2024 and October 1, 2023
In March 2024, the Company modified the exercise price for certain outstanding SARs to be $
Awards outstanding under the plan
As of September 29, 2024 and December 31, 2023, there were
Share-based compensation during the 13 weeks and 39 weeks ended September 29, 2024 and October 1, 2023 was recorded in the consolidated statements of operations within a separate line item as shown in the following table:
|
|
For the 13 Weeks Ended |
|
|
For the 39 Weeks Ended |
|
||||||||||
(in thousands) |
|
September 29, 2024 |
|
|
October 1, 2023 |
|
|
September 29, 2024 |
|
|
October 1, 2023 |
|
||||
SARs |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Restricted stock awards (Growth Shares) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
RSUs |
|
|
|
|
|
|
|
|
|
|
|
|
||||
PSUs |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Type III modification |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Employer-related payroll expense(1) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total share-based compensation expense |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Tax benefit for share-based compensation expense |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Share-based compensation expense, net of tax |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
The weighted-average assumptions used in valuing SARs granted or modified during each period are set forth in the following table:
|
For the 39 Weeks Ended |
|
For the Fiscal Year Ended |
||
Expected average life(1) |
|
|
|
||
Expected volatility(2) |
% |
|
% |
||
Risk-free interest rate(3) |
% |
|
% |
||
Expected dividend yield(4) |
% |
|
% |
||
As of September 29, 2024, total compensation expense not yet recognized is as follows:
Holders of Class A common stock and Class B common stock are entitled to receive dividends out of legally available funds on a pari passu basis. Holders of Class A common stock are entitled to
20
Soho House & Co Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited)
As of September 29, 2024 and December 31, 2023 and for the 13 weeks and 39 weeks ended September 29, 2024 and October 1, 2023
The tables below present changes in each class of the Company’s common stock, as applicable:
|
SHCO Common Stock |
|
|||||
|
Class A Common Stock |
|
|
Class B Common Stock |
|
||
As of January 1, 2023 |
|
|
|
|
|
||
Shares issues related to share-based compensation |
|
|
|
|
|
||
As of April 2, 2023 |
|
|
|
|
|
||
Shares issues related to share-based compensation |
|
|
|
|
|
||
As of July 2, 2023 |
|
|
|
|
|
||
Shares issues related to share-based compensation |
|
|
|
|
|
||
Shares repurchased |
|
( |
) |
|
|
|
|
As of October 1, 2023 |
|
|
|
|
|
||
|
SHCO Common Stock |
|
|||||
|
Class A Common Stock |
|
|
Class B Common Stock |
|
||
As of December 31, 2023 |
|
|
|
|
|
||
Shares issued related to share-based compensation |
|
|
|
|
|
||
As of March 31, 2024 |
|
|
|
|
|
||
Shares issued related to share-based compensation |
|
|
|
|
|
||
Shares repurchased |
|
( |
) |
|
|
|
|
As of June 30, 2024 |
|
|
|
|
|
||
Shares issued related to share-based compensation |
|
|
|
|
|
||
Shares repurchased |
|
( |
) |
|
|
|
|
As of September 29, 2024 |
|
|
|
|
|
||
Share Repurchases
On March 18, 2022, the Company’s board and a relevant sub-committee thereof authorized and approved a stock repurchase program for up to $
On September 20, 2023, the Company repurchased
On February 9, 2024, the Company’s board and a relevant sub-committee authorized and approved a new stock repurchase program for up to $
Loss Per Share
The Company computes loss per share using the two-class method. As the liquidation and dividend rights are identical, the undistributed earnings or losses are allocated on a proportionate basis to each class of common stock, and the resulting basic and diluted loss per share attributable to common stockholders are therefore the same for Class A and Class B common stock.
Litigation Matters
The Company is not a party to any litigation other than litigation in the ordinary course of business. The Company’s management and legal counsel do not expect that the ultimate outcome of any of its currently ongoing legal proceedings, individually or collectively, will have a material adverse effect on the Company’s unaudited condensed consolidated financial statements.
21
Soho House & Co Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited)
As of September 29, 2024 and December 31, 2023 and for the 13 weeks and 39 weeks ended September 29, 2024 and October 1, 2023
During the 13 weeks ended September 29, 2024, the Company identified a misstatement in the geographic allocation of its legal entity level forecasts which impacted the calculation of the interim tax expense for Q1 2024 and Q2 2024 previously reported periods. There was no material impact on Group level forecasts. There have been no other material changes in the Company’s estimates or provisions for income taxes recorded in the unaudited condensed consolidated balance sheet for the 13 weeks and 39 weeks ended September 29, 2024. Refer to Note 17, Revision of Prior Period Financial Statement for further information.
Full valuation allowances have been recorded against the incremental deferred tax assets recognized for tax losses, share-based compensation, and excess interest primarily in the U.K., U.S. and Hong Kong. The Company continues to evaluate all positive and negative evidence to assess the realizability of its net deferred tax assets and it is reasonably possible that there may be a change in the valuation allowance within the next twelve months. The gross unrecognized tax benefits have increased by $
The effective tax rate for the 13 weeks ended September 29, 2024 was
The Organization for Economic Cooperation and Development (OECD) global tax reform initiative introduces a global minimum tax of
The Company has carried out an assessment of the impact of this legislation for the 39 weeks ended September 29, 2024 and has concluded that these new rules are not likely to have a material impact on the Company's effective tax rate or tax payments for this period. The Company will undertake this assessment for subsequent reporting periods to monitor its compliance with the GloBE rules for fiscal 2024.
The Company’s core operations comprise of Houses, hotels and restaurants across a number of territories, which are managed on a geographical basis. There is a segment managing director for each of the UK, The Americas, Europe and Rest of the World (“RoW”) who is responsible for Houses, hotels and restaurants in that region. Each operating segment manager reports directly to the Company’s Chief Operating Decision Maker (“CODM”), the Chief Executive Officer, Chief Financial Officer and Chief Operating Officer combined. In addition to Houses, hotels and restaurants, the Company offers other products and services, such as retail, home & beauty products and services, which comprise its Retail operating segment; access to Soho Works collaboration spaces across the UK and North America, which comprise its Soho Works operating segment; and memberships for people who live in cities where physical Houses do not exist, which comprise its Cities Without Houses operating segment. The Retail, Soho Works, and Cities Without Houses operating segments also have segment managers which report directly to the CODM and are managed separately from the Houses, hotels and restaurants in each region.
The Company has identified the following three reportable segments:
The Company analyzed the results of the Retail, Soho Works, Soho Restaurants, and Cities Without Houses operating segments and concluded that they did not warrant separate presentation as reportable segments as they do not provide additional useful information to the readers of the financial statements. Therefore, these segments are included as part of an “All Other” category. The historical North America reportable segment has been renamed to The Americas; however, there is no change to the manner in which the segment was previously presented.
Intercompany revenues and costs among the reportable segments are not material and are accounted for as if the sales were to third parties because these items are based on negotiated fees between the segments involved. All intercompany transactions and balances are eliminated in consolidation. Intercompany revenues and costs between entities within a reportable segment are eliminated to arrive at segment totals. Segment revenue includes revenue of certain equity method investments, which are considered stand-alone operating segments, which are therefore not included in revenues as part of these consolidated financial statements. Eliminations between segments are separately presented. Corporate results include amounts related to corporate functions such as administrative costs and professional fees. Income tax expense is managed by Corporate on a consolidated basis and is not allocated to the reportable segments.
The Company manages and assesses the performance of the reportable segments by Reportable segments EBITDA, which is defined as net income (loss) before depreciation and amortization, interest expense, net, provision (benefit) for income taxes, adjusted to take account of the impact of certain non-cash and other items that the Company does not consider in its evaluation of ongoing operating performance. These other items include, but are not limited to, loss (gain) on sale of property and other, net, share of loss (profit) of equity method investments, foreign exchange, pre-opening expenses, non-cash rent, deferred registration fees, net, share of equity method investments EBITDA, share-based compensation expense, and certain other expenses.
The following tables present disaggregated revenue for the 13 weeks and 39 weeks ended September 29, 2024 and October 1, 2023 and the key financial metrics reviewed by the CODM for the Company’s reportable segments:
22
Soho House & Co Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited)
As of September 29, 2024 and December 31, 2023 and for the 13 weeks and 39 weeks ended September 29, 2024 and October 1, 2023
|
For the 13 Weeks Ended September 29, 2024 |
|
|||||||||||||||||||||
(in thousands) |
The Americas |
|
|
UK |
|
|
Europe |
|
|
Reportable |
|
|
All |
|
|
Total |
|
||||||
Membership revenues |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||
In-House revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Other revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total segment revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Elimination of equity accounted revenue |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
Consolidated revenue |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||
|
For the 13 Weeks Ended October 1, 2023 (As Revised) |
|
|||||||||||||||||||||
(in thousands) |
The Americas |
|
|
UK |
|
|
Europe & |
|
|
Reportable |
|
|
All |
|
|
Total |
|
||||||
Membership revenues |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||
In-House revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Other revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total segment revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Elimination of equity accounted revenue |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
Consolidated revenue |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||
|
For the 39 Weeks Ended September 29, 2024 |
|
|||||||||||||||||||||
(in thousands) |
The Americas |
|
|
UK |
|
|
Europe |
|
|
Reportable |
|
|
All |
|
|
Total |
|
||||||
Membership revenues |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||
In-House revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Other revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total segment revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Elimination of equity accounted revenue |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
Consolidated revenue |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||
|
For the 39 Weeks Ended October 1, 2023 (As Revised) |
|
|||||||||||||||||||||
(in thousands) |
The Americas |
|
|
UK |
|
|
Europe & |
|
|
Reportable |
|
|
All |
|
|
Total |
|
||||||
Membership revenues |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||
In-House revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Other revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total segment revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Elimination of equity accounted revenue |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
Consolidated revenue |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||
23
Soho House & Co Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited)
As of September 29, 2024 and December 31, 2023 and for the 13 weeks and 39 weeks ended September 29, 2024 and October 1, 2023
The following tables present the reconciliation of reportable segment EBITDA to total consolidated segment revenue:
|
For the 13 Weeks Ended September 29, 2024 |
|
|||||||||||||||||||||
(in thousands) |
The Americas |
|
|
UK |
|
|
Europe & |
|
|
Reportable |
|
|
All |
|
|
Total |
|
||||||
Total consolidated segment revenue |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||
Total segment operating expenses |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Share of equity method investments adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Reportable segments EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|||||
Unallocated corporate overhead |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|||||
Consolidated segmental EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|||||
Interest expense, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|||||
Income tax expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|||||
Gain (loss) on sale of property and other, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|||||
Share of income of equity method investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Foreign exchange |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Pre-opening expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|||||
Non-cash rent |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Deferred registration fees, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Share of equity method investments adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|||||
Share-based compensation expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|||||
Loss on impairment of long-lived assets(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|||||
Other expenses, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|||||
Net income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
|
||||||
(1)
.
24
Soho House & Co Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited)
As of September 29, 2024 and December 31, 2023 and for the 13 weeks and 39 weeks ended September 29, 2024 and October 1, 2023
|
For 13 Weeks Ended October 1, 2023 (As Revised) |
|
|||||||||||||||||||||
(in thousands) |
The Americas |
|
|
UK |
|
|
Europe & |
|
|
Reportable |
|
|
All |
|
|
Total |
|
||||||
Total consolidated segment revenue |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||
Total segment operating expenses |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Share of equity method investments adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Reportable segments EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|||||
Unallocated corporate overhead |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|||||
Consolidated segmental EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|||||
Interest expense, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|||||
Income tax expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|||||
Gain on sale of property and other, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Share of income of equity method investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Foreign exchange |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|||||
Pre-opening expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|||||
Non-cash rent |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Deferred registration fees, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Share of equity method investments EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|||||
Share-based compensation expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|||||
Other expenses, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|||||
Net income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
( |
) |
|||||
|
For the 39 Weeks Ended September 29, 2024 |
|
|||||||||||||||||||||
(in thousands) |
The Americas |
|
|
UK |
|
|
Europe & |
|
|
Reportable |
|
|
All |
|
|
Total |
|
||||||
Total consolidated segment revenue |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||
Total segment operating expenses |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Share of equity method investments adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Reportable segments EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|||||
Unallocated corporate overhead |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|||||
Consolidated segmental EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|||||
Interest expense, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|||||
Income tax expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|||||
Loss on sale of property and other, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|||||
Share of income of equity method investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Foreign exchange |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Pre-opening expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|||||
Non-cash rent |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Deferred registration fees, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Share of equity method investments adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|||||
Share-based compensation expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|||||
Loss on impairment of long-lived assets(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|||||
Other expenses, net(2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|||||
Net income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
( |
) |
|||||
25
Soho House & Co Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited)
As of September 29, 2024 and December 31, 2023 and for the 13 weeks and 39 weeks ended September 29, 2024 and October 1, 2023
(1)
(2)
|
For 39 Weeks Ended October 1, 2023 (As Revised) |
|
|||||||||||||||||||||
(in thousands) |
The Americas |
|
|
UK |
|
|
Europe & |
|
|
Reportable |
|
|
All |
|
|
Total |
|
||||||
Total consolidated segment revenue |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||
Total segment operating expenses |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Share of equity method investments adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Reportable segments EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|||||
Unallocated corporate overhead |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|||||
Consolidated segmental EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|||||
Interest expense, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|||||
Income tax expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|||||
Gain on sale of property and other, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Share of income of equity method investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Foreign exchange |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Pre-opening expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|||||
Non-cash rent |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|||||
Deferred registration fees, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Share of equity method investments EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|||||
Share-based compensation expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|||||
Other expenses, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|||||
Net income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
( |
) |
|||||
The following table presents long-lived asset information (which includes property and equipment, net, operating lease right-of-use assets and equity method investments) by geographic area as of September 29, 2024 and December 31, 2023. Asset information by segment is not reported internally or otherwise regularly reviewed by the CODM.
|
|
As of |
|
|||||
(in thousands) |
|
September 29, 2024 |
|
|
December 31, 2023 |
|
||
Long-lived assets by geography |
|
|
|
|
|
|
||
The Americas |
|
$ |
|
|
$ |
|
||
United Kingdom |
|
|
|
|
|
|
||
Europe |
|
|
|
|
|
|
||
Asia |
|
|
|
|
|
|
||
Total long-lived assets |
|
$ |
|
|
$ |
|
||
The amounts owed by (to) equity method investees due within one year are as follows:
26
Soho House & Co Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited)
As of September 29, 2024 and December 31, 2023 and for the 13 weeks and 39 weeks ended September 29, 2024 and October 1, 2023
|
|
As of |
|
|||||
(in thousands) |
|
September 29, 2024 |
|
|
December 31, 2023 |
|
||
Soho House Toronto Partnership |
|
$ |
|
|
$ |
|
||
Raycliff Red LLP |
|
|
( |
) |
|
|
( |
) |
Mirador Barcel S.L. |
|
|
( |
) |
|
|
( |
) |
Little Beach House Barcelona S.L. |
|
|
( |
) |
|
|
( |
) |
Mimea XXI S.L. |
|
|
|
|
|
|
||
Soho Beach House Canouan Limited |
|
|
|
|
|
|
||
|
|
$ |
( |
) |
|
$ |
( |
) |
Amounts owed by equity method investees due within one year are included in prepaid expenses and other current assets on the consolidated balance sheets. Amounts owed to equity method investees due within one year are included in other current liabilities on the consolidated balance sheets.
Lease contracts with Related Parties
Through Soho Works 875 Washington, LLC, the Company is a party to a property lease agreement dated April 19, 2019, for 875 Washington Street, New York with 875 Washington Street Owner, LLC, an affiliate of Raycliff Capital, LLC controlled by a member of the board until June 20, 2024 when the member of the board stood down from their position. The handover of five floors of the leased property occurred on a floor-by-floor basis resulting in multiple lease commencement dates in 2019 and 2020. The various lease contracts run for a term of
The Company is party to a property lease arrangement with The Yucaipa Companies LLC ("Yucaipa") for 9100-9110 West Sunset Boulevard, Los Angeles, California. This lease runs for a term of
Through Soho-Ludlow Tenant LLC, the Company is a party to a property lease agreement dated May 3, 2019, for 137 Ludlow Street, New York with 137 Ludlow Gardens LLC, an affiliate of Yucaipa. This lease runs for a term of
The Company leases the Little House West Hollywood, 8465 Hollywood Drive, West Hollywood, California, from GHWHI, LLC, an affiliate of Yucaipa, until August 2024 when ownership was transferred to a third party. This lease commenced on October 16, 2021. This lease runs for a term of
The Company leases the Tel Aviv House, 27 Yefet Street, Tel Aviv, Israel, from an affiliate of Raycliff Capital, LLC which held a portion of the SHHL redeemable C ordinary shares prior to the IPO and continues to hold Class A common stock of SHCO however on June 20, 2024 the affiliate stood down from the board. This lease commenced on June 1, 2021. This lease runs for a term of
The Company leases a property from GHPSI, LLC, an affiliate of Yucaipa, in order to operate the Le Vallauris restaurant, 385 West Tahquitz Canyon Way, Palm Springs, California. This lease runs for a term of
The Company leases a property located at 900 Campagna Lane, Kenwood, California from Kenwood Ranch, LLC, an affiliate of Yucaipa. This lease runs for a term of
The Company leases a property located at 27984 Highway 189, Lake Arrowhead, California from RLAHI, LLC, an affiliate of Yucaipa. This lease
27
Soho House & Co Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited)
As of September 29, 2024 and December 31, 2023 and for the 13 weeks and 39 weeks ended September 29, 2024 and October 1, 2023
runs for a term of
The Company leases a property from GHPSI, LLC, an affiliate of Yucaipa, in order to operate the Willows Historic Palm Springs Inn, 412 West Tahquitz Canyon Way, Palm Springs, California. This lease commenced on September 15, 2022. This lease runs for a term of
The Company leased the Soho House Stockholm property located at Majorsgatan 5, Stockholm, Sweden from Majorsbolaget AB, an affiliate of Yucaipa, until October 2023 when ownership was transferred to a third party. The operating lease right-of-use asset and liability associated with this lease were $
Hotel Management agreements with Related Parties
The Company recognized management fees, development fees and cost reimbursements from the Ned-Soho House, LLP, a joint venture between the Company and an affiliate of Yucaipa, related to the operations of the Ned London. The Company recognized a receivable of $
The Company recognized management fee income from the Ned NY 28th, LLC, an affiliate of Yucaipa, related to the operations of The Ned New York, which opened in June 2022, leading to a receivable of $
The Company recognized management fees and cost reimbursements from Oryx Corniche Developments QPSC, an affiliates of Yucaipa, related to the operations of The Ned Doha, which opened in November 2022, leading to a receivable balance totaling $
The Company received management fees under our hotel management contract for the operation of The LINE and Saguaro hotels from LA Wilshire Hotel LLC, Adams Morgan Hotel Owner LLC, Downtown Austin Lakeside Hotel LLC and Palm Canyon Hotel LLC as the owners of the LINE and Saguaro hotels, which are affiliates of Yucaipa. These fees led to a receivable of $
The Company recognized management fees under our studio, hotel and restaurant management contract for the operation of Redchurch Street studio space, hotel and Cecconi's from an affiliate of Raycliff Capital, LLC which was controlled by a member of the SHCO board of directors until June 20, 2024 when the member stood down from the board. The fees led to a receivable of $
28
Soho House & Co Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited)
As of September 29, 2024 and December 31, 2023 and for the 13 weeks and 39 weeks ended September 29, 2024 and October 1, 2023
Design Service Management Agreements with Related Parties
Fees from the provision of Soho House Design services to affiliates, Oryx Corniche Developments QPSC, have led to a receivable totaling $
In September 2023, the Company repurchased
The Company reported a combined total amount related to the transactions listed above of $
Included in current liabilities in the unaudited condensed consolidated balance sheet are amounts due to related parties listed above of $
The Company reported in the unaudited condensed consolidated statement of operations a combined amount of revenue generated from related party transactions listed above of $
The Company is party to various transactions with affiliates of Yucaipa, as identified above. Yucaipa, through its participation in the Voting Group, has significant influence over us, including control over decisions that require the approval of stockholders. The Voting Group constitutes our Founder and director Nick Jones, Richard Caring a director, and certain affiliates of Yucaipa and its Founder and our executive chairman and a director, Ron Burkle, together with their respective family members and certain affiliates.
29
As described in Note 2 Summary of Significant Accounting Policies, during the 13-week period ended September 29, 2024, in connection with a planned ERP systems upgrade, the Company performed a number of initiatives including continuing to work with external consultants to review and strengthen its internal controls and processes, including reconciliations and completing the implementation of a new ERP system for its retail business in August 2024. Through the performance of these activities, management identified misstatements in its previously issued financial statements and confirmed the financial statement impact of previously identified uncorrected immaterial misstatements. While correction of these adjustments as out of period corrections would be material in aggregate to the current period, the Company determined the impacts of these misstatements were not material to the financial statements for all prior periods identified. As a result, the Company has revised its Fiscal 2023 and Fiscal 2022 consolidated financial statements and Q2 2024, Q1 2024, Q3 2023, Q2 2023 and Q1 2023 unaudited condensed consolidated financial statements to adjust for the impact of these misstatements.
The Company has classified the majority of the misstatements into the following major categories:
On the statement of operations, this misstatement resulted in an understatement of net loss of $
The identified misstatements resulted in adjustments to a various financial statement line items in the balance sheets, the statements of operations and the statements of cash flows across the periods presented in the tables below as follows:
30
The Company assessed the materiality of the errors, both individually and in aggregate, including as out of period corrections in the current period as well as corrections to impacted prior period consolidated financial statements, on a qualitative and quantitative basis in accordance with SEC Staff Accounting Bulletins (“SAB”) No. 99, Materiality, and No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements, codified in Accounting Standards Codification (“ASC”) Topic 250, Accounting Changes and Error Corrections. The Company evaluated the materiality of the errors on the Fiscal 2023 and Fiscal 2022 consolidated financial statements and Q2 2024, Q1 2024, Q3 2023, Q2 2023 and Q1 2023 unaudited condensed consolidated financial statements and determined that they did not result in a material misstatement to the financial condition, results of operations, change of trend, or liquidity for any of these periods previously presented. However, the Company determined that the effect of recording the misstatements during the 13-week and 39-week periods ended as of September 29, 2024, would be material to the consolidated financial statements for the 52-week period ended December 29, 2024. As a result, the Company revised its previously issued consolidated financial statements.
The revision of the historical consolidated financial statements also includes the correction of other previously identified immaterial errors, which have impacted a number of financial statement line items in the balance sheets, the statements of operations and the statements of cash flows across the periods presented in the tables below that follow. The Company had previously determined that these adjustments did not, either individually or in the aggregate, result in a material misstatement of its previously issued consolidated financial statements. Further, the revision of the Fiscal 2022 consolidated financial statements includes as an out of period adjustment misstatements identified impacting periods pre-Fiscal 2022. Management has concluded that the impact pre-Fiscal 2022 is not material and will be part of the revisions in Fiscal 2022.
The Company believes the misstatements identified are related to manual processes and the existing material weaknesses in our control over financial reporting as described in the most recently filed Form 10-K for the fiscal year as of and ended December 31, 2023. The Company has devoted, and will continue to devote, significant time and resources to complete its remediation of the material weaknesses. The following components of the ongoing remediation plan, among others, are:
Further, the Company is focused on continuing to bolster its Transformation and Finance teams including by hiring a Chief Transformation Officer (November 2024) to lead the ERP system implementation and a number of personnel with a higher level of knowledge and experience including application of US GAAP, internal audit and SOX compliance.
The Company considers that the actions described above are comprehensive and will remediate the material weaknesses and strengthen the Company’s internal control over financial reporting. Given the Company on-going process of recruiting experienced accounting staff and implementing the new ERP system, the Company believes that additional time will be beneficial to demonstrate that the new personnel, in conjunction with the new system, have the ability to consistently perform their responsibilities to ensure that the material weaknesses have been fully remediated. Therefore, the Company has concluded that these material weaknesses will not be considered fully remediated until the remediation actions, including those above, have operated effectively for a sufficient period of time and have been sufficiently tested.
Further information regarding the misstatements and related revisions including details of the corrections on the impacted financial statement line items are summarized in the tables below.
31
Consolidated Balance Sheets |
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June 30, 2024 |
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March 31, 2024 |
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||||||||||||||||||
(in thousands, except for par value and share data) |
As Previously Reported |
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Adjustment |
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As Revised |
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|
As Previously Reported |
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Adjustment |
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As Revised |
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||||||
Assets |
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||||||
Current assets |
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||||||
Cash and cash equivalents |
$ |
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$ |
( |
) |
|
$ |
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$ |
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|
$ |
( |
) |
|
$ |
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||||
Restricted cash |
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||||||
Accounts receivable, net |
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( |
) |
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|||||
Inventories |
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( |
) |
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( |
) |
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||||
Prepaid expenses and other current assets |
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( |
) |
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( |
) |
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||||
Total current assets |
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( |
) |
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( |
) |
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||||
Property and equipment, net |
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( |
) |
|
|
|
|
|
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|
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( |
) |
|
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|
||||
Operating lease assets |
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||||||
Goodwill |
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||||||
Other intangible assets, net |
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|
||||||
Equity method investments |
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( |
) |
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( |
) |
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|
||||
Deferred tax assets |
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||||||
Other non-current assets |
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( |
) |
|
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( |
) |
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||||
Total non-current assets |
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|
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|
|
|
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|
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( |
) |
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|
|||||
Total assets |
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
||||
Liabilities, Redeemable Shares and Shareholders' Equity (Deficit) |
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|
||||||
Current liabilities |
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|
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|
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|
|
|
|
|
|
|
||||||
Accounts payable |
$ |
|
|
$ |
- |
|
|
$ |
|
|
$ |
|
|
$ |
- |
|
|
$ |
|
||||
Accrued liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
||||||
Current portion of deferred revenue |
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|
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
|
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|
||||
Indirect and employee taxes payable |
|
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|
|
|
|
|
|
|
|
|
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|
||||||
Current portion of debt, net of debt issuance costs |
|
|
|
|
- |
|
|
|
|
|
|
|
|
|
- |
|
|
|
|
||||
Current portion of operating lease liabilities - sites trading less than one year |
|
|
|
|
- |
|
|
|
|
|
|
|
|
|
- |
|
|
|
|
||||
Current portion of operating lease liabilities - sites trading more than one year |
|
|
|
|
- |
|
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|
|
|
|
|
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|
|
|
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|
|||||
Other current liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
||||||
Total current liabilities |
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|
|
|
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|
||||||
Debt, net of current portion and debt issuance costs |
|
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|
|
|
|
|
|
|
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|
|
|
|
|
|
|
||||||
Property mortgage loans, net of debt issuance costs |
|
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|
|
|
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|
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|
|
|
|
|
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|
||||||
Operating lease liabilities, net of current portion - sites trading less than one year |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Operating lease liabilities, net of current portion - sites trading more than one year |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Finance lease liabilities, net of current portion |
|
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|
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|
||||||
Financing obligation, net of current portion |
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|
||||||
Deferred revenue, net of current portion |
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|
|
|
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|
||||||
Deferred tax liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
||||||
Other non-current tax liabilities |
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
||||
Total non-current liabilities |
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total liabilities |
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|
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|
||||||
|
|
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|
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|
|
|
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|
|||||||
Shareholders’ deficit |
|
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|
|
|
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|
|
|
|
|
|
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|
||||||
Class A common stock |
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|
|
- |
|
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|
|
|
|
|
|
|
- |
|
|
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|
||||
Additional paid-in capital |
|
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Accumulated deficit |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Accumulated other comprehensive loss |
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
||||
Treasury stock |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
||
Total shareholders’ deficit attributable to Soho House & Co Inc. |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Noncontrolling interest |
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
||||
Total shareholders’ deficit |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Total liabilities and shareholders’ deficit |
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
||||
32
|
December 31, 2023 |
|
|
October 1, 2023 |
|
||||||||||||||||||
(in thousands, except for par value and share data) |
As Previously Reported |
|
|
Adjustment |
|
|
As Revised |
|
|
As Previously Reported |
|
|
Adjustment |
|
|
As Revised |
|
||||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Current assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Cash and cash equivalents |
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
||||
Restricted cash |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Accounts receivable, net |
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Inventories |
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
||||
Prepaid expenses and other current assets |
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
||||
Total current assets |
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
||||
Property and equipment, net |
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
||||
Operating lease assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Goodwill |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Other intangible assets, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Equity method investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Deferred tax assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Other non-current assets |
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
||||
Total non-current assets |
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
||||
Total assets |
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
||||
Liabilities, Redeemable Shares and Shareholders' Equity (Deficit) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Current liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Accounts payable |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||
Accrued liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Current portion of deferred revenue |
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
||||
Indirect and employee taxes payable |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Current portion of debt, net of debt issuance costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Current portion of operating lease liabilities - sites trading less than one year |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Current portion of operating lease liabilities - sites trading more than one year |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Other current liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total current liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Debt, net of current portion and debt issuance costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Property mortgage loans, net of debt issuance costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Operating lease liabilities, net of current portion - sites trading less than one year |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Operating lease liabilities, net of current portion - sites trading more than one year |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Finance lease liabilities, net of current portion |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Financing obligation, net of current portion |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Deferred revenue, net of current portion |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Deferred tax liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Other non-current tax liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total non-current liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Shareholders’ deficit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Class A common stock |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Additional paid-in capital |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Accumulated deficit |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Accumulated other comprehensive loss |
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Treasury stock |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
||
Total shareholders’ deficit attributable to Soho House & Co Inc. |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Noncontrolling interest |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total shareholders’ deficit |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Total liabilities and shareholders’ deficit |
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
||||
33
|
July 2, 2023 |
|
|
April 2, 2023 |
|
||||||||||||||||||
(in thousands, except for par value and share data) |
As Previously Reported |
|
|
Adjustment |
|
|
As Revised |
|
|
As Previously Reported |
|
|
Adjustment |
|
|
As Revised |
|
||||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Current assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Cash and cash equivalents |
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
||||
Restricted cash |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Accounts receivable, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Inventories |
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
||||
Prepaid expenses and other current assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total current assets |
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
||||
Property and equipment, net |
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
||||
Operating lease assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Goodwill |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Other intangible assets, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Equity method investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Deferred tax assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Other non-current assets |
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
||||
Total non-current assets |
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
||||
Total assets |
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
||||
Liabilities, Redeemable Shares and Shareholders' Equity (Deficit) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Current liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Accounts payable |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||
Accrued liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Current portion of deferred revenue |
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
||||
Indirect and employee taxes payable |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Current portion of debt, net of debt issuance costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Current portion of operating lease liabilities - sites trading less than one year |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Current portion of operating lease liabilities - sites trading more than one year |
|
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Other current liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total current liabilities |
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Debt, net of current portion and debt issuance costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Property mortgage loans, net of debt issuance costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Operating lease liabilities, net of current portion - sites trading less than one year |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Operating lease liabilities, net of current portion - sites trading more than one year |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Finance lease liabilities, net of current portion |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Financing obligation, net of current portion |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Deferred revenue, net of current portion |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Deferred tax liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total non-current liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total liabilities |
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Shareholders’ deficit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Class A common stock |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Additional paid-in capital |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Accumulated deficit |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Accumulated other comprehensive loss |
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
||||
Treasury stock |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
||
Total shareholders’ deficit attributable to Soho House & Co Inc. |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Noncontrolling interest |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total shareholders’ deficit |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Total liabilities and shareholders’ deficit |
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
||||
34
|
January 1, 2023 |
|
|||||||||
(in thousands, except for par value and share data) |
As Previously Reported |
|
|
Adjustment |
|
|
As Revised |
|
|||
Assets |
|
|
|
|
|
|
|
|
|||
Current assets |
|
|
|
|
|
|
|
|
|||
Cash and cash equivalents |
$ |
|
|
$ |
( |
) |
|
$ |
|
||
Restricted cash |
|
|
|
|
|
|
|
|
|||
Accounts receivable, net |
|
|
|
|
|
|
|
|
|||
Inventories |
|
|
|
|
( |
) |
|
|
|
||
Prepaid expenses and other current assets |
|
|
|
|
|
|
|
|
|||
Total current assets |
|
|
|
|
( |
) |
|
|
|
||
Property and equipment, net |
|
|
|
|
( |
) |
|
|
|
||
Operating lease assets |
|
|
|
|
|
|
|
|
|||
Goodwill |
|
|
|
|
|
|
|
|
|||
Other intangible assets, net |
|
|
|
|
|
|
|
|
|||
Equity method investments |
|
|
|
|
|
|
|
|
|||
Deferred tax assets |
|
|
|
|
|
|
|
|
|||
Other non-current assets |
|
|
|
|
( |
) |
|
|
|
||
Total non-current assets |
|
|
|
|
( |
) |
|
|
|
||
Total assets |
$ |
|
|
$ |
( |
) |
|
$ |
|
||
Liabilities, Redeemable Shares and Shareholders' Equity (Deficit) |
|
|
|
|
|
|
|
|
|||
Current liabilities |
|
|
|
|
|
|
|
|
|||
Accounts payable |
$ |
|
|
$ |
|
|
$ |
|
|||
Accrued liabilities |
|
|
|
|
|
|
|
|
|||
Current portion of deferred revenue |
|
|
|
|
( |
) |
|
|
|
||
Indirect and employee taxes payable |
|
|
|
|
|
|
|
|
|||
Current portion of debt, net of debt issuance costs |
|
|
|
|
|
|
|
|
|||
Current portion of related party loans |
|
|
|
|
|
|
|
|
|||
Current portion of operating lease liabilities - sites trading less than one year |
|
|
|
|
|
|
|
|
|||
Current portion of operating lease liabilities - sites trading more than one year |
|
|
|
|
|
|
|
|
|||
Other current liabilities |
|
|
|
|
( |
) |
|
|
|
||
Total current liabilities |
|
|
|
|
( |
) |
|
|
|
||
Debt, net of current portion and debt issuance costs |
|
|
|
|
|
|
|
|
|||
Property mortgage loans, net of debt issuance costs |
|
|
|
|
|
|
|
|
|||
Operating lease liabilities, net of current portion - sites trading less than one year |
|
|
|
|
|
|
|
|
|||
Operating lease liabilities, net of current portion - sites trading more than one year |
|
|
|
|
|
|
|
|
|||
Finance lease liabilities, net of current portion |
|
|
|
|
|
|
|
|
|||
Financing obligation, net of current portion |
|
|
|
|
|
|
|
|
|||
Deferred revenue, net of current portion |
|
|
|
|
|
|
|
|
|||
Deferred tax liabilities |
|
|
|
|
|
|
|
|
|||
Other non-current liabilities |
|
|
|
|
|
|
|
|
|||
Total non-current liabilities |
|
|
|
|
|
|
|
|
|||
Total liabilities |
|
|
|
|
( |
) |
|
|
|
||
|
|
|
|
|
|
|
|
||||
Shareholders’ deficit |
|
|
|
|
|
|
|
|
|||
Class A common stock |
|
|
|
|
|
|
|
|
|||
Additional paid-in capital |
|
|
|
|
|
|
|
|
|||
Accumulated deficit |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Accumulated other comprehensive loss |
|
|
|
|
|
|
|
|
|||
Treasury stock |
|
( |
) |
|
|
|
|
|
( |
) |
|
Total shareholders’ deficit attributable to Soho House & Co Inc. |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Noncontrolling interest |
|
|
|
|
|
|
|
|
|||
Total shareholders’ deficit |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Total liabilities and shareholders’ deficit |
$ |
|
|
$ |
( |
) |
|
$ |
|
||
35
Consolidated Statements of Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
13 weeks ended March 31, 2024 |
|
|
13 weeks ended June 30, 2024 |
|
||||||||||||||||||
|
As Previously Reported |
|
|
Adjustment |
|
|
As Revised |
|
|
As Previously Reported |
|
|
Adjustment |
|
|
As Revised |
|
||||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Membership revenues |
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
||||
In-House revenues |
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
||||
Other revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total revenues |
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
In-House operating expenses |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
Other operating expenses |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
||
General and administrative |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
||
Pre-opening expenses |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
||
Depreciation and amortization |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
||
Share-based compensation |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
||
Foreign exchange (loss) gain, net |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
||
Other, net |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
Total operating expenses |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
||
Operating income (loss) |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
Other (expense) income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest expense, net |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
||
Gain (loss) on sale of property and other, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Share of profit (loss) of equity method investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total other expense, net |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
||
Loss before income taxes |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
Income tax (expense) benefit |
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
|
||||
Net loss |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
||
Net loss (income) attributable to noncontrolling interest |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net loss attributable to Soho House & Co Inc. |
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
||
Net loss per share attributable to Class A and B common stock shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Basic and diluted |
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
||
Weighted average shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Basic and diluted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
26 weeks ended June 30, 2024 |
|
|||||||||
|
As Previously Reported |
|
|
Adjustment |
|
|
As Revised |
|
|||
Revenues |
|
|
|
|
|
|
|
|
|||
Membership revenues |
$ |
|
|
$ |
( |
) |
|
$ |
|
||
In-House revenues |
|
|
|
|
( |
) |
|
|
|
||
Other revenues |
|
|
|
|
|
|
|
|
|||
Total revenues |
|
|
|
|
( |
) |
|
|
|
||
|
|
|
|
|
|
|
|
|
|||
Operating expenses |
|
|
|
|
|
|
|
|
|||
In-House operating expenses |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Other operating expenses |
|
( |
) |
|
|
|
|
|
( |
) |
|
General and administrative |
|
( |
) |
|
|
|
|
|
( |
) |
|
Pre-opening expenses |
|
( |
) |
|
|
|
|
|
( |
) |
|
Depreciation and amortization |
|
( |
) |
|
|
|
|
|
( |
) |
|
Share-based compensation |
|
( |
) |
|
|
|
|
|
( |
) |
|
Foreign exchange (loss) gain, net |
|
( |
) |
|
|
|
|
|
( |
) |
|
Other, net |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Total operating expenses |
|
( |
) |
|
|
|
|
|
( |
) |
|
Operating income (loss) |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Other (expense) income |
|
|
|
|
|
|
|
|
|||
Interest expense, net |
|
( |
) |
|
|
|
|
|
( |
) |
|
Gain (loss) on sale of property and other, net |
|
|
|
|
|
|
|
|
|||
Share of profit (loss) of equity method investments |
|
|
|
|
|
|
|
|
|||
Total other expense, net |
|
( |
) |
|
|
|
|
|
( |
) |
|
Loss before income taxes |
|
( |
) |
|
|
) |
|
|
( |
) |
|
Income tax (expense) benefit |
|
( |
) |
|
|
|
|
|
|
||
Net loss |
|
( |
) |
|
|
|
|
|
( |
) |
|
Net loss (income) attributable to noncontrolling interest |
|
|
|
|
|
|
|
|
|||
Net loss attributable to Soho House & Co Inc. |
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
Net loss per share attributable to Class A and B common stock shareholders |
|
|
|
|
|
|
|
|
|||
Basic and diluted |
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
Weighted average shares outstanding |
|
|
|
|
|
|
|
|
|||
Basic and diluted |
|
|
|
|
|
|
|
|
|||
36
|
13 weeks ended April 2, 2023 |
|
|
13 weeks ended July 2, 2023 |
|
||||||||||||||||||
|
As Previously Reported |
|
|
Adjustment |
|
|
As Revised |
|
|
As Previously Reported |
|
|
Adjustment |
|
|
As Revised |
|
||||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Membership revenues |
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
||||
In-House revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Other revenues |
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total revenues |
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
In-House operating expenses |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Other operating expenses |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
||
General and administrative |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
||
Pre-opening expenses |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
Depreciation and amortization |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
||
Share-based compensation |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
||
Foreign exchange (loss) gain, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Other, net |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
|
||||
Total operating expenses |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
||
Operating income (loss) |
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
||||
Other (expense) income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest expense, net |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
||
Gain (loss) on sale of property and other, net |
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
||||
Share of profit (loss) of equity method investments |
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total other expense, net |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
Loss before income taxes |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
Income tax (expense) benefit |
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
||||
Net loss |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
Net loss (income) attributable to noncontrolling interest |
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
||||
Net loss attributable to Soho House & Co Inc. |
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
Net loss per share attributable to Class A and B common stock shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Basic and diluted |
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
Weighted average shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Basic and diluted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
13 weeks ended October 1, 2023 |
|
|||||||||
|
As Previously Reported |
|
|
Adjustment |
|
|
As Revised |
|
|||
Revenues |
|
|
|
|
|
|
|
|
|||
Membership revenues |
$ |
|
|
$ |
( |
) |
|
$ |
|
||
In-House revenues |
|
|
|
|
( |
) |
|
|
|
||
Other revenues |
|
|
|
|
( |
) |
|
|
|
||
Total revenues |
|
|
|
|
( |
) |
|
|
|
||
|
|
|
|
|
|
|
|
|
|||
Operating expenses |
|
|
|
|
|
|
|
|
|||
In-House operating expenses |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Other operating expenses |
|
( |
) |
|
|
|
|
|
( |
) |
|
General and administrative |
|
( |
) |
|
|
|
|
|
( |
) |
|
Pre-opening expenses |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Depreciation and amortization |
|
( |
) |
|
|
|
|
|
( |
) |
|
Share-based compensation |
|
( |
) |
|
|
|
|
|
( |
) |
|
Foreign exchange (loss) gain, net |
|
( |
) |
|
|
|
|
|
( |
) |
|
Loss on impairment of long-lived assets |
|
|
|
|
|
|
|
|
|||
Other, net |
|
( |
) |
|
|
|
|
|
( |
) |
|
Total operating expenses |
|
( |
) |
|
|
|
|
|
( |
) |
|
Operating income (loss) |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Other (expense) income |
|
|
|
|
|
|
|
|
|||
Interest expense, net |
|
( |
) |
|
|
|
|
|
( |
) |
|
Gain (loss) on sale of property and other, net |
|
|
|
|
|
|
|
|
|||
Share of profit (loss) of equity method investments |
|
|
|
|
|
|
|
|
|||
Total other expense, net |
|
( |
) |
|
|
|
|
|
( |
) |
|
Loss before income taxes |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Income tax (expense) benefit |
|
( |
) |
|
|
|
|
|
( |
) |
|
Net loss |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Net loss (income) attributable to noncontrolling interest |
|
( |
) |
|
|
|
|
|
( |
) |
|
Net loss attributable to Soho House & Co Inc. |
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
Net loss per share attributable to Class A and B common stock shareholders |
|
|
|
|
|
|
|
|
|||
Basic and diluted |
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
Weighted average shares outstanding |
|
|
|
|
|
|
|
|
|||
Basic and diluted |
|
|
|
|
|
|
|
|
|||
37
|
26 weeks ended July 2, 2023 |
|
|
39 weeks ended October 1, 2023 |
|
|
For the fiscal year ended December 31, 2023 |
|
|||||||||||||||||||||||||||
|
As Previously Reported |
|
|
Adjustment |
|
|
As Revised |
|
|
As Previously Reported |
|
|
Adjustment |
|
|
As Revised |
|
|
As Previously Reported |
|
|
Adjustment |
|
|
As Revised |
|
|||||||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Membership revenues |
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
||||||
In-House revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Other revenues |
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
||||||
Total revenues |
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
In-House operating expenses |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Other operating expenses |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
|||
General and administrative |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
|||
Pre-opening expenses |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Depreciation and amortization |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
|||
Share-based compensation |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
|||
Foreign exchange (loss) gain, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Loss on impairment of long-lived assets |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Other, net |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
||
Total operating expenses |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
||
Operating income (loss) |
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|||
Other (expense) income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest expense, net |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
|||
Gain (loss) on sale of property and other, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|||||||
Share of profit (loss) of equity method investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total other expense, net |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
|||
Loss before income taxes |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Income tax (expense) benefit |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
|||
Net loss |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Net loss (income) attributable to noncontrolling interest |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
|||
Net loss attributable to Soho House & Co Inc. |
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
Net loss per share attributable to Class A and B common stock shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Basic and diluted |
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
Weighted average shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Basic and diluted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
For the fiscal year ended January 1, 2023 |
|
|||||||||
|
As Previously Reported |
|
|
Adjustment |
|
|
As Revised |
|
|||
Revenues |
|
|
|
|
|
|
|
|
|||
Membership revenues |
$ |
|
|
$ |
|
|
$ |
|
|||
In-House revenues |
|
|
|
|
|
|
|
|
|||
Other revenues |
|
|
|
|
|
|
|
|
|||
Total revenues |
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|||
Operating expenses |
|
|
|
|
|
|
|
|
|||
In-House operating expenses |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Other operating expenses |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
General and administrative |
|
( |
) |
|
|
|
|
|
( |
) |
|
Pre-opening expenses |
|
( |
) |
|
|
|
|
|
( |
) |
|
Depreciation and amortization |
|
( |
) |
|
|
|
|
|
( |
) |
|
Share-based compensation |
|
( |
) |
|
|
|
|
|
( |
) |
|
Foreign exchange (loss) gain, net |
|
( |
) |
|
|
|
|
|
( |
) |
|
Other, net |
|
( |
) |
|
|
|
|
|
( |
) |
|
Total operating expenses |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Operating income (loss) |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Other (expense) income |
|
|
|
|
|
|
|
|
|||
Interest expense, net |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Gain (loss) on sale of property and other, net |
|
|
|
|
|
|
|
|
|||
Share of profit (loss) of equity method investments |
|
|
|
|
|
|
|
|
|||
Total other expense, net |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Loss before income taxes |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Income tax (expense) benefit |
|
( |
) |
|
|
|
|
|
( |
) |
|
Net loss |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Net loss (income) attributable to noncontrolling interest |
|
( |
) |
|
|
|
|
|
( |
) |
|
Net loss attributable to Soho House & Co Inc. |
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
Net loss per share attributable to Class A and B common stock shareholders |
|
|
|
|
|
|
|
|
|||
Basic and diluted |
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
Weighted average shares outstanding |
|
|
|
|
|
|
|
|
|||
Basic and diluted |
|
|
|
|
|
|
|
|
|||
38
Consolidated Statement of Comprehensive Loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
13 weeks ended March 31, 2024 |
|
|
13 weeks ended June 30, 2024 |
|
||||||||||||||||||
|
As Previously Reported |
|
|
Adjustment |
|
|
As Revised |
|
|
As Previously Reported |
|
|
Adjustment |
|
|
As Revised |
|
||||||
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net loss |
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Other comprehensive loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Foreign currency translation adjustment |
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|||
Comprehensive loss |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Loss attributable to noncontrolling interest |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Foreign currency translation adjustment attributable to noncontrolling interest |
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total comprehensive loss attributable to Soho House & Co Inc. |
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
||
|
26 weeks ended June 30, 2024 |
|
|||||||||
|
As Previously Reported |
|
|
Adjustment |
|
|
As Revised |
|
|||
(in thousands) |
|
|
|
|
|
|
|
|
|||
Net loss |
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
|
|
|
|
|
|
|
|
|
|||
Other comprehensive loss |
|
|
|
|
|
|
|
|
|||
Foreign currency translation adjustment |
|
|
|
|
( |
) |
|
|
|
||
Comprehensive loss |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|||
Loss attributable to noncontrolling interest |
|
|
|
|
|
|
|
|
|||
Foreign currency translation adjustment attributable to noncontrolling interest |
|
( |
) |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|||
Total comprehensive loss attributable to Soho House & Co Inc. |
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
|
13 weeks ended April 2, 2023 |
|
|
13 weeks ended July 2, 2023 |
|
||||||||||||||||||
|
As Previously Reported |
|
|
Adjustment |
|
|
As Revised |
|
|
As Previously Reported |
|
|
Adjustment |
|
|
As Revised |
|
||||||
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net loss |
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Other comprehensive loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Foreign currency translation adjustment |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
Comprehensive loss |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Loss attributable to noncontrolling interest |
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
||||
Foreign currency translation adjustment attributable to noncontrolling interest |
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total comprehensive loss attributable to Soho House & Co Inc. |
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
|
13 weeks ended October 1, 2023 |
|
|||||||||
|
As Previously Reported |
|
|
Adjustment |
|
|
As Revised |
|
|||
(in thousands) |
|
|
|
|
|
|
|
|
|||
Net loss |
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
|
|
|
|
|
|
|
|
|||
Other comprehensive loss |
|
|
|
|
|
|
|
|
|||
Foreign currency translation adjustment |
|
|
|
|
|
|
|
|
|||
Comprehensive loss |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|||
Loss attributable to noncontrolling interest |
|
( |
) |
|
|
|
|
|
( |
) |
|
Foreign currency translation adjustment attributable to noncontrolling interest |
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|||
Total comprehensive loss attributable to Soho House & Co Inc. |
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
39
|
26 weeks ended July 2, 2023 |
|
|
39 weeks ended October 1, 2023 |
|
|
For the fiscal year ended December 31, 2023 |
|
|||||||||||||||||||||||||||
|
As Previously Reported |
|
|
Adjustment |
|
|
As Revised |
|
|
As Previously Reported |
|
|
Adjustment |
|
|
As Revised |
|
|
As Previously Reported |
|
|
Adjustment |
|
|
As Revised |
|
|||||||||
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Net loss |
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Other comprehensive loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Foreign currency translation adjustment |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
(25,077 |
) |
|
Comprehensive loss |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Loss attributable to noncontrolling interest |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
|||
Foreign currency translation adjustment attributable to noncontrolling interest |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total comprehensive loss attributable to Soho House & Co Inc. |
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
For the fiscal year ended January 1, 2023 |
|
|||||||||
|
As Previously Reported |
|
|
Adjustment |
|
|
As Revised |
|
|||
(in thousands) |
|
|
|
|
|
|
|
|
|||
Net loss |
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
|
|
|
|
|
|
|
|
|||
Other comprehensive loss |
|
|
|
|
|
|
|
|
|||
Foreign currency translation adjustment |
|
|
|
|
|
|
|
|
|||
Comprehensive loss |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|||
Loss attributable to noncontrolling interest |
|
( |
) |
|
|
|
|
|
( |
) |
|
Foreign currency translation adjustment attributable to noncontrolling interest |
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|||
Total comprehensive loss attributable to Soho House & Co Inc. |
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
Consolidated Statement of Changes in Shareholders’ Deficit Loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands except for share data) |
As Previously Reported |
|
Adjustment |
|
As Revised |
||||||||||||
|
Accumulated Deficit |
Accumulated Other Comprehensive Income (Loss) |
Total Shareholders' Deficit Attributable to Soho House & Co Inc. |
Noncontrolling Interest |
Total Shareholders' (Deficit) Equity |
|
Accumulated Deficit |
Accumulated Other Comprehensive Income (Loss) |
Total Shareholders' Deficit Attributable to Soho House & Co Inc. |
Noncontrolling Interest |
Total Shareholders' (Deficit) Equity |
|
Accumulated Deficit |
Accumulated Other Comprehensive Income (Loss) |
Total Shareholders' Deficit Attributable to Soho House & Co Inc. |
Noncontrolling Interest |
Total Shareholders' (Deficit) Equity |
As of January 2, 2022 |
$( |
$ |
$ |
$ |
$ |
|
$- |
$- |
$- |
$- |
$- |
|
$( |
$ |
$ |
$ |
$ |
Net loss |
( |
- |
( |
( |
|
( |
- |
( |
- |
( |
|
( |
- |
(224,157) |
800 |
(223,357) |
|
Distributions to noncontrolling interest |
- |
- |
- |
( |
( |
|
- |
- |
- |
- |
- |
|
- |
- |
- |
( |
( |
Purchase of noncontrolling interests in connection with the Soho Restaurants Acquisition |
- |
- |
( |
- |
|
- |
- |
- |
- |
- |
|
- |
- |
( |
|
||
Shares repurchased |
- |
- |
( |
( |
|
- |
- |
- |
- |
- |
|
- |
- |
( |
( |
||
Share-based compensation, net of tax |
- |
- |
|
- |
- |
- |
- |
- |
|
- |
- |
||||||
Additional IPO costs |
- |
- |
( |
( |
|
- |
- |
- |
- |
- |
|
- |
- |
( |
( |
||
Net change in cumulative translation adjustment |
- |
( |
|
- |
- |
|
( |
||||||||||
As of January 1, 2023 |
$( |
$ |
$( |
$ |
$( |
|
$( |
$ |
$( |
$- |
$( |
|
$( |
$ |
$( |
$ |
$( |
Net loss |
( |
- |
( |
( |
|
( |
- |
( |
- |
( |
|
( |
- |
( |
( |
||
Distributions to noncontrolling interest |
- |
- |
- |
( |
( |
|
- |
- |
- |
- |
- |
|
- |
- |
- |
( |
( |
Shares repurchased |
- |
- |
( |
- |
( |
|
- |
- |
- |
- |
- |
|
- |
- |
( |
- |
( |
Non-cash share-based compensation |
- |
- |
- |
|
- |
- |
- |
- |
- |
|
- |
- |
- |
||||
Net change in cumulative translation adjustment |
- |
( |
( |
( |
|
- |
( |
( |
- |
( |
|
- |
( |
( |
( |
||
As of December 31, 2023 |
$( |
$ |
$( |
$ |
$( |
|
$( |
$( |
$( |
$- |
$( |
|
$( |
$ |
$( |
$ |
$( |
(in thousands except for share data) |
As Previously Reported |
|
|
Adjustment |
|
|
As Revised |
|
|||||||||||||||||||||||||||||||||||||||
|
Accumulated Deficit |
|
Accumulated Other Comprehensive Income (Loss) |
|
Total Shareholders' Deficit Attributable to Soho House & Co Inc. |
|
Noncontrolling Interest |
|
Total Shareholders' (Deficit) Equity |
|
|
Accumulated Deficit |
|
Accumulated Other Comprehensive Income (Loss) |
|
Total Shareholders' Deficit Attributable to Soho House & Co Inc. |
|
Noncontrolling Interest |
|
Total Shareholders' (Deficit) Equity |
|
|
Accumulated Deficit |
|
Accumulated Other Comprehensive Income (Loss) |
|
Total Shareholders' Deficit Attributable to Soho House & Co Inc. |
|
Noncontrolling Interest |
|
Total Shareholders' (Deficit) Equity |
|
|||||||||||||||
As of December 31, 2023 |
$ |
( |
) |
$ |
|
$ |
( |
) |
$ |
|
$ |
( |
) |
|
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
$ |
- |
|
$ |
( |
) |
|
$ |
( |
) |
$ |
|
$ |
( |
) |
$ |
|
$ |
( |
) |
||||
Net income (loss) |
|
( |
) |
|
- |
|
|
( |
) |
|
( |
) |
|
( |
) |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
|
|
( |
) |
|
- |
|
|
( |
) |
|
( |
) |
|
( |
) |
|||
Non-cash share-based compensation |
|
- |
|
|
- |
|
|
|
|
- |
|
|
|
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
|
- |
|
|
- |
|
|
|
|
- |
|
|
|
||||
Net change in cumulative translation adjustment |
|
- |
|
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
( |
) |
|
|
|
|
- |
|
|
|
|
|
|
( |
) |
|
|
||||||||||
As of March 31, 2024 |
$ |
( |
) |
$ |
|
$ |
( |
) |
$ |
|
$ |
( |
) |
|
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
|
$ |
( |
) |
$ |
|
$ |
( |
) |
$ |
|
$ |
( |
) |
||||
Net income (loss) |
|
( |
) |
|
- |
|
|
( |
) |
|
( |
) |
|
( |
) |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
|
|
( |
) |
|
- |
|
|
( |
) |
|
( |
) |
|
( |
) |
|||
Distributions to noncontrolling interests |
|
- |
|
|
- |
|
|
- |
|
|
( |
) |
|
( |
) |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
|
- |
|
|
- |
|
|
- |
|
|
( |
) |
|
( |
) |
Shares repurchased |
|
- |
|
|
- |
|
|
( |
) |
|
- |
|
|
( |
) |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
|
- |
|
|
- |
|
|
( |
) |
|
- |
|
|
( |
) |
Non-cash share-based compensation |
|
- |
|
|
- |
|
|
|
|
- |
|
|
|
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
|
- |
|
|
- |
|
|
|
|
- |
|
|
|
||||
Net change in cumulative translation adjustment |
|
- |
|
|
( |
) |
|
( |
) |
|
|
|
( |
) |
|
|
- |
|
|
( |
) |
|
( |
) |
|
- |
|
|
( |
) |
|
|
- |
|
|
( |
) |
|
( |
) |
|
|
|
( |
) |
||
As of June 30, 2024 |
$ |
( |
) |
$ |
|
$ |
( |
) |
$ |
|
$ |
( |
) |
|
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
|
$ |
( |
) |
$ |
|
$ |
( |
) |
$ |
|
$ |
( |
) |
||||
40
(in thousands except for share data) |
As Previously Reported |
|
|
Adjustment |
|
|
As Revised |
|
|||||||||||||||||||||||||||||||||||||||
|
Accumulated Deficit |
|
Accumulated Other Comprehensive Income (Loss) |
|
Total Shareholders' Deficit Attributable to Soho House & Co Inc. |
|
Noncontrolling Interest |
|
Total Shareholders' (Deficit) Equity |
|
|
Accumulated Deficit |
|
Accumulated Other Comprehensive Income (Loss) |
|
Total Shareholders' Deficit Attributable to Soho House & Co Inc. |
|
Noncontrolling Interest |
|
Total Shareholders' (Deficit) Equity |
|
|
Accumulated Deficit |
|
Accumulated Other Comprehensive Income (Loss) |
|
Total Shareholders' Deficit Attributable to Soho House & Co Inc. |
|
Noncontrolling Interest |
|
Total Shareholders' (Deficit) Equity |
|
|||||||||||||||
As of January 1, 2023 |
$ |
( |
) |
$ |
|
$ |
( |
) |
$ |
|
$ |
( |
) |
|
$ |
( |
) |
$ |
|
$ |
( |
) |
$ |
- |
|
$ |
( |
) |
|
$ |
( |
) |
$ |
|
$ |
( |
) |
$ |
|
$ |
( |
) |
|||||
Net loss |
|
( |
) |
|
- |
|
|
( |
) |
|
( |
) |
|
( |
) |
|
|
( |
) |
|
|
|
( |
) |
|
- |
|
|
( |
) |
|
|
( |
) |
|
- |
|
|
( |
) |
|
( |
) |
|
( |
) |
|
Distributions to noncontrolling interest |
|
- |
|
|
- |
|
|
- |
|
|
( |
) |
|
( |
) |
|
|
- |
|
|
|
|
|
|
- |
|
|
- |
|
|
|
- |
|
|
- |
|
|
- |
|
|
( |
) |
|
( |
) |
||
Non-cash share-based compensation |
|
- |
|
|
- |
|
|
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
- |
|
|
- |
|
|
|
- |
|
|
- |
|
|
|
|
|
|
|
||||||||
Net change in cumulative translation adjustment |
|
- |
|
|
( |
) |
|
( |
) |
|
( |
) |
|
( |
) |
|
|
- |
|
|
( |
) |
|
( |
) |
|
- |
|
|
( |
) |
|
|
- |
|
|
( |
) |
|
( |
) |
|
( |
) |
|
( |
) |
As of April 2, 2023 |
$ |
( |
) |
$ |
|
$ |
( |
) |
$ |
|
$ |
( |
) |
|
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
$ |
- |
|
$ |
( |
) |
|
$ |
( |
) |
$ |
|
$ |
( |
) |
$ |
|
$ |
( |
) |
||||
Net loss |
|
( |
) |
|
- |
|
|
( |
) |
|
|
|
( |
) |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
|
|
( |
) |
|
- |
|
|
( |
) |
|
|
|
( |
) |
|||||
Share-based compensation, net of tax |
|
- |
|
|
- |
|
|
|
|
- |
|
|
|
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
|
- |
|
|
- |
|
|
|
|
- |
|
|
|
||||
Net change in cumulative translation adjustment |
|
- |
|
|
( |
) |
|
( |
) |
|
|
|
( |
) |
|
|
- |
|
|
|
|
|
|
- |
|
|
|
|
|
- |
|
|
( |
) |
|
( |
) |
|
|
|
( |
) |
|||||
As of July 2, 2023 |
$ |
( |
) |
$ |
|
$ |
( |
) |
$ |
|
$ |
( |
) |
|
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
$ |
- |
|
$ |
( |
) |
|
$ |
( |
) |
$ |
|
$ |
( |
) |
$ |
|
$ |
( |
) |
||||
Net loss |
|
( |
) |
|
- |
|
|
( |
) |
|
|
|
( |
) |
|
|
( |
) |
|
- |
|
|
( |
) |
|
- |
|
|
( |
) |
|
|
( |
) |
|
- |
|
|
( |
) |
|
|
|
( |
) |
||
Shares repurchased |
|
- |
|
|
- |
|
|
( |
) |
|
- |
|
|
( |
) |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
|
- |
|
|
- |
|
|
( |
) |
|
- |
|
|
( |
) |
Share-based compensation, net of tax |
|
- |
|
|
- |
|
|
|
|
- |
|
|
|
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
|
- |
|
|
- |
|
|
|
|
- |
|
|
|
||||
Net change in cumulative translation adjustment |
|
- |
|
|
|
|
|
|
( |
) |
|
|
|
|
- |
|
|
|
|
|
|
- |
|
|
|
|
|
- |
|
|
|
|
|
|
( |
) |
|
|
|||||||||
As of October 1, 2023 |
$ |
( |
) |
$ |
|
$ |
( |
) |
$ |
|
$ |
( |
) |
|
$ |
( |
) |
$ |
|
$ |
( |
) |
$ |
- |
|
$ |
( |
) |
|
$ |
( |
) |
$ |
|
$ |
( |
) |
$ |
|
$ |
( |
) |
|||||
Consolidated Statement of Cash Flows |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
13 weeks ended March 31, 2024 |
|
|
26 weeks ended June 30, 2024 |
|
||||||||||||||||||
|
As Previously Reported |
|
|
Adjustment |
|
|
As Revised |
|
|
As Previously Reported |
|
|
Adjustment |
|
|
As Revised |
|
||||||
Cash flows from operating activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net loss |
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Depreciation and amortization |
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
||||
Non-cash share-based compensation, net of tax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Deferred tax expense (benefit) |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
(Gain) loss on disposal of property and other, net |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
||
Loss on impairment of intangible assets |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
- |
|
|
|
|
||
Share of (profit) loss of equity method investments |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
||
Amortization of debt issuance costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
PIK interest |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Distributions from equity method investees |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Foreign exchange loss (gain), net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Accounts receivable |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|||
Inventories |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
||
Operating leases, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Other operating assets |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
Deferred revenue |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
||
Accounts payable and accrued and other liabilities |
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
||||
Net cash provided by operating activities |
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
||||
Cash flows from investing activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Purchase of property and equipment |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
||
Purchase of intangible assets |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
||
Repayment of capital investment from equity method investee |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net cash used in investing activities |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
||
Cash flows from financing activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Repayment of borrowings |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
||
Proceeds from borrowings |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
||
Principal payments on finance leases |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
||
Principal payments on financing obligation |
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|||||
Distributions to noncontrolling interest |
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
||||
Purchase of treasury stock |
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
||||
Net cash (used in) provided by financing activities |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
Net (decrease) increase in cash and cash equivalents, and restricted cash |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Cash, cash equivalents, and restricted cash |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Beginning of period |
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
||||
End of period |
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
||||
41
|
13 weeks ended April 2, 2023 |
|
|
26 weeks ended July 2, 2023 |
|
||||||||||||||||||
|
As Previously Reported |
|
|
Adjustment |
|
|
As Revised |
|
|
As Previously Reported |
|
|
Adjustment |
|
|
As Revised |
|
||||||
Cash flows from operating activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net loss |
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Depreciation and amortization |
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
||||
Non-cash share-based compensation, net of tax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Deferred tax expense (benefit) |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
||
(Gain) loss on disposal of property and other, net |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
||
Share of (profit) loss of equity method investments |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
||
Amortization of debt issuance costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Loss on debt extinguishment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
PIK interest |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Distributions from equity method investees |
|
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
|
|||||
Foreign exchange loss (gain), net |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
||
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Accounts receivable |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
||
Inventories |
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
||||
Operating leases, net |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
||
Other operating assets |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Deferred revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|||||
Accounts payable and accrued and other liabilities |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|||
Net cash provided by operating activities |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
||
Cash flows from investing activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Purchase of property and equipment |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
||
Proceeds from sale of assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Purchase of intangible assets |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
||
Net cash used in investing activities |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
||
Cash flows from financing activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Repayment of borrowings |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
||
Payment for debt extinguishment costs |
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
||||
Proceeds from borrowings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Payments for debt issuance costs |
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
||||
Principal payments on finance leases |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
||
Distributions to noncontrolling interest |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
||
Net cash (used in) provided by financing activities |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
|
||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net (decrease) increase in cash and cash equivalents, and restricted cash |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Cash, cash equivalents, and restricted cash |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Beginning of period |
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
||||
End of period |
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
||||
42
|
39 weeks ended October 1, 2023 |
|
|
For the fiscal year ended December 31, 2023 |
|
||||||||||||||||||
|
As Previously Reported |
|
|
Adjustment |
|
|
As Revised |
|
|
As Previously Reported |
|
|
Adjustment |
|
|
As Revised |
|
||||||
Cash flows from operating activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net loss |
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
|
|||||
Depreciation and amortization |
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
||||
Non-cash share-based compensation, net of tax |
|
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Deferred tax expense (benefit) |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
||
(Gain) loss on disposal of property and other, net |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
|
||||
Impairment relating to long-lived assets |
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|||||
Provision for write-down of inventories |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Share of (profit) loss of equity method investments |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
||
Amortization of debt issuance costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Loss on debt extinguishment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
PIK interest |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Distributions from equity method investees |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Foreign exchange loss (gain), net |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
||
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Accounts receivable |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
||
Inventories |
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
||||
Operating leases, net |
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
||||
Other operating assets |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
||
Deferred revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Accounts payable and accrued and other liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net cash provided by operating activities |
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
||||
Cash flows from investing activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Purchase of property and equipment |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
||
Proceeds from sale of assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Purchase of intangible assets |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
||
Property and casualty insurance proceeds received |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net cash used in investing activities |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
||
Cash flows from financing activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Repayment of borrowings |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
||
Payment for debt extinguishment costs |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
||
Proceeds from borrowings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Payments for debt issuance costs |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
||
Principal payments on finance leases |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
||
Distributions to noncontrolling interest |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
||
Purchase of treasury stock |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
||
Net cash (used in) provided by financing activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
|||
Net (decrease) increase in cash and cash equivalents, and restricted cash |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Cash, cash equivalents, and restricted cash |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Beginning of period |
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
||||
End of period |
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
||||
43
|
For the fiscal year ended January 1, 2023 |
|
|||||||||
|
As Previously Reported |
|
|
Adjustment |
|
|
As Revised |
|
|||
Cash flows from operating activities |
|
|
|
|
|
|
|
|
|||
Net loss |
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities |
|
|
|
|
|
|
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|
|||
Depreciation and amortization |
|
|
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( |
) |
|
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||
Non-cash share-based compensation, net of tax |
|
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|
|
|
|
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|
|||
Deferred tax expense (benefit) |
|
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|
|
|||
(Gain) loss on disposal of property and other, net |
|
( |
) |
|
|
|
|
|
( |
) |
|
Share of (profit) loss of equity method investments |
|
( |
) |
|
|
|
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( |
) |
|
Amortization of debt issuance costs |
|
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|||
PIK interest |
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|||
Distributions from equity method investees |
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Foreign exchange loss (gain), net |
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|||
Changes in assets and liabilities: |
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|||
Accounts receivable |
|
( |
) |
|
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( |
) |
|
|
( |
) |
Inventories |
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( |
) |
|
|
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|
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( |
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|
Operating leases, net |
|
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|
|||
Other operating assets |
|
( |
) |
|
|
( |
) |
|
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( |
) |
Deferred revenue |
|
|
|
|
( |
) |
|
|
|
||
Accounts payable and accrued and other liabilities |
|
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|
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|||
Net cash provided by operating activities |
|
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|
( |
) |
|
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||
Cash flows from investing activities |
|
|
|
|
|
|
|
|
|||
Purchase of property and equipment |
|
( |
) |
|
|
|
|
|
( |
) |
|
Proceeds from sale of assets |
|
|
|
|
|
|
|
|
|||
Purchase of intangible assets |
|
( |
) |
|
|
|
|
|
( |
) |
|
Property and casualty insurance proceeds received |
|
|
|
|
|
|
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|
|||
Net cash used in investing activities |
|
( |
) |
|
|
|
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|
( |
) |
|
Cash flows from financing activities |
|
|
|
|
|
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|
|||
Repayment of borrowings |
|
( |
) |
|
|
|
|
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( |
) |
|
Issuance of related party loans |
|
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|
|
|
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|
|||
Proceeds from borrowings |
|
|
|
|
|
|
|
|
|||
Payments for debt issuance costs |
|
( |
) |
|
|
|
|
|
( |
) |
|
Principal payments on finance leases |
|
( |
) |
|
|
|
|
|
( |
) |
|
Principal payments on financing obligation |
|
( |
) |
|
|
|
|
|
( |
) |
|
Distributions to noncontrolling interest |
|
( |
) |
|
|
|
|
|
( |
) |
|
Purchase of treasury stock |
|
( |
) |
|
|
|
|
|
( |
) |
|
Proceeds from initial public offering, net of offering costs |
|
( |
) |
|
|
|
|
|
( |
) |
|
Net cash (used in) provided by financing activities |
|
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|
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|
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|
|||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash |
|
( |
) |
|
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|
( |
) |
|
Net (decrease) increase in cash and cash equivalents, and restricted cash |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Cash, cash equivalents, and restricted cash |
|
|
|
|
|
|
|
|
|||
Beginning of period |
|
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|
|
|
|
|
|||
End of period |
$ |
|
|
$ |
( |
) |
|
$ |
|
||
18.
Shares Issued
Subsequent to September 29, 2024, the Company issued a total of
Lease contracts with related parties
On October 21, 2024, the Le Vallauris restaurant California (US), and the Willows Historic Palm Springs Inn (California, US) lease contracts were modified to defer the rent until Palm Springs Soho House opening date. This modification was a result of rent negotiation efforts between two parties to reflect the commercial relationship between the restaurant, inn and House locations. As disclosed in Note 16 Related Party Transactions, the Company leases these properties from GHPSI, LLC, an affiliate of Yucaipa.
44
Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
Management’s discussion and analysis of our financial condition and results of operations should be read in conjunction with our condensed consolidated financial statements and related notes and other financial information included elsewhere in this Quarterly Report on Form 10-Q and our audited consolidated financial statements and notes thereto and the related Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023.
In addition to historical financial information, this discussion and other parts of this report contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, based upon current expectations that involve risks and uncertainties. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth in the “Risk Factors” section in this Quarterly Report on Form 10-Q, and under Part II, Item 1A below. Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties that could cause actual results and events to differ from those anticipated. These statements are based upon information currently available to us, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements, like all statements in this report, speak only as of their date, and we undertake no obligation to update or revise these statements in light of future developments. These statements are inherently uncertain, and investors are cautioned not to unduly rely upon these statements.
Overview
SHCO is a global membership platform that connects a vibrant, diverse group of members from across the world. These members use the platform to both work and socialize, to connect, create, have fun and drive a positive change. The central pillar of SHCO is Soho House, which drives the majority of our membership and revenue today. A Soho House membership offers access to a network of distinctive and carefully curated Houses, across the Americas, the United Kingdom, Europe and Asia, which serve as the cornerstone of our member experience. We enhance our member experience through our digital channels, including the Soho House App and our website.
Over the last 29 years, we have expanded our membership expertise and diversified our offerings—both physically and digitally. As of September 29, 2024, we had approximately 267,500 members (including approximately 208,100 Soho House Members) who engage with SHCO through our global portfolio of 45 Soho Houses, 8 Soho Works, Scorpios Beach Clubs in Mykonos and Bodrum, Soho Home, our interiors and lifestyle retail brand, and our digital channels. The Ned hotels in London, New York and Doha and The LINE and Saguaro hotels in The Americas also form part of SHCO’s wider portfolio via management agreements to operate the properties.
Our membership expertise, honed through the growth of Soho House, has led to our evolution into Soho House & Co, a home to numerous memberships including Cities Without Houses, Soho Works, Soho Friends, and Ned’s Club. By designing, curating and growing our membership offering, our membership platform can quickly and easily respond to shifting lifestyle trends and the evolution of our members’ needs. Our memberships work together, allowing us to reach new audiences with a set of interconnected offerings.
Our membership has remained resilient through multiple economic cycles and other macroeconomic dislocations, including the recent COVID-19 pandemic. The power of our model is driven by the important role we believe that we play in our members’ lives and the value we consistently provide them for their membership fees. We believe our retention compares favorably to leading consumer subscriptions or memberships—across music, media, fitness, entertainment and commerce—despite, in many cases, their significantly lower price points.
The demand for our membership is also demonstrated by our large and growing SHCO global waitlist, which as of September 29, 2024 stands at approximately 111,000 applicants. Awareness of our distinct membership offerings and their scarcity is spread by our members organically through word of mouth, social media and press coverage.
Further, we have observed a secular shift in the ways that people live and work—with less time spent in traditional corporate offices and more time in social spaces that encourage creativity and mutual engagement. We believe that these trends will only accelerate, and that the freedom to be able to choose where to live and work will likely have a significant impact on our target market. We believe this will create an even greater demand for curated communities that can grow and thrive in a more deliberate environment.
Membership Revenues are comprised of annual membership fees and one-time initial registration fees paid by members. In-House Revenues include all revenues realized within our Houses, including food and beverage, accommodation, and spa products and treatments. We view Membership Revenues and In-House revenues as interrelated, although there is no minimum spend for any member on our In-House offerings that generate In-House Revenues. In practice the significant majority of In-House Revenues are generated by our members, and the pricing of our In-House offerings reflects that accordingly, with pricing of such In-House offerings being identical for both members and non-members.
Other revenues include all revenues not realized within our Houses, including Scorpios, Soho Works and stand-alone restaurants, design and procurement fees from Soho House Design, Soho Home and Cowshed retail products and other revenues from products and services that we provide outside of our Houses, as well as management fees from hotel management contracts for The Ned Sites and The LINE and Saguaro hotels.
Our Membership Platform
All of our memberships have been built to enrich the lives of their members, as well as expand our membership offering to a broader audience.
45
Soho House
Soho House remains at the core of our membership platform by creating a foundation upon which additional membership businesses can be built and scaled.
Every House annual membership fee is approximately $4,800, excluding local sales taxes, which provides access to all of our Houses globally. Our Houses attract members from every demographic, with members from “Generation Z” (27 years old and younger) and “Millennials” (28 to 43 year-olds) constituting the fastest-growing cohorts. We believe the pricing of our In-House offerings represents great value to our members because of the level of quality provided, reinforcing the overall membership experience, rewarding their brand loyalty and creating opportunities for future and recurring revenues.
We created the following types of membership under Soho House to reach a broader audience and enhance the experience of our existing members:
This membership allows us to welcome members to our global community in new geographies where we do not have a physical House. Through this membership we are able to generate additional revenues on our existing base of Houses and gather intelligence for future growth, which we have leveraged to open new Houses in certain locations, including Bangkok, Thailand (February 2023), Mexico City, Mexico (September 2023), Portland, USA (March 2024), Sao Paulo, Brazil (June 2024) and planned future openings in places such as Manchester, United Kingdom and Milan, Italy. As of September 29, 2024, we had 11,879 CWH members across 83 cities.
Through this membership we offer access to some physical House spaces, including Soho House bedrooms, and screenings, with additional benefits from our restaurants, spas and online retail brands to an audience who enjoy the Soho House offerings but do not have a Soho House Membership. Soho Friends annual membership is approximately $130 and does not provide full access to our Houses. As of September 29, 2024, we had 53,235 Soho Friends members. We intend to grow this membership brand in a measured way so that our Soho House Members continue to account for the majority of visitors to our Houses and restaurants.
Soho Works provides its members with the space and resources to work alongside other like-minded individuals and businesses—facilitating connections and providing the tools to flourish. Aimed primarily at existing Soho House and Soho Friends members, with locations in LA, New York and London. Soho Works draws on the same design principles and membership ethos as Soho House, but is a space purposed entirely for work and creative collaboration. As of September 29, 2024, we had 6,181 Soho Works members. Soho Works membership rates vary by location and Soho House membership status. For Adult Paying Members, a US Soho Works membership ranges from $200 to $750 per month, depending on membership type.
Scorpios Beach Club
Scorpios is a well-established globally recognized brand, focused on enriching the lives of its guests who are looking to escape from their daily lives, with two locations currently open. The original Scorpios, set in a cove on the southern tip of Mykonos, offers a one of a kind beach experience with a restaurant, terraces and daybeds, and a distinctive wellness offering. The second location, which opened in Bodrum, Turkey, in June 2024, offers similar seaside restaurant and terrace experiences, and also includes 12 bungalows equipped with private pools. We believe the Scorpios concept has significant potential to expand further, with the expectation to open a third site in Tulum, Mexico.
The Ned
The Ned brand seeks to embody a “city within a city” full-service destination, by playing host to multiple restaurants, bedrooms, a range of grooming services, spa, gym and a full-service members’ club. The membership offered by The Ned (“Ned’s Club”) including Ned’s Friends is aimed at a broader group of professional people. As of September 29, 2024, Ned’s Club London, New York and Doha had approximately 4,600 members, and expect to open a fourth site in Washington, D.C. in early 2025. The Ned offers its members The Ned’s Club app, which allows members to make bookings, publish benefits, events and club related information. We receive management fees under hotel management contracts for each of the existing operations of The Ned sites.
The LINE
On June 22, 2021, we acquired the operating agreements relating to the ‘The LINE’ and ‘Saguaro’ hotels. The hotels that are currently operational are located in Los Angeles, Washington, Austin, Palm Springs, and San Francisco, and among them offer a variety of food and beverage offerings together with approximately 1,500 hotel rooms. We receive management fees under hotel management contracts for the operation of these hotels. The transaction has broadened our geographic reach in The Americas.
Factors Affecting Our Business
We believe the coveted lifestyle brand we have created has significant and proven growth potential. This potential, combined with the stability of our membership base, we believe will enable us to maintain our position as an industry leader in the future. We expect to grow our member base by growing the number of Soho Houses, continuing to scale our existing membership brands and launching and growing new membership brands. We believe our track record in expanding and growing our platform will position us to achieve significant and sustained growth.
A significant portion of our revenues is derived from House Revenues which consist of Membership Revenues and In-House Revenues. Our Membership Revenues, which are reflective of our steady and growing global brand, help to provide us with a recurring revenue base that limits the impact of fluctuations in regional economic conditions.
46
Our business and future performance is also affected by a variety of factors, including:
Reportable Segments
Our operations consist of three reportable segments (United Kingdom, The Americas, Europe and Rest of the World (“RoW”)) and one non-reportable segment that we present as “All Other”. Each of our segments includes all operations in that region including our Houses and all associated facilities, spas and stand-alone restaurants. The historical North America reportable segment has been renamed to The Americas; however, there is no change to the manner in which the segment was previously presented. Refer to Note 15, Segments in this Quarterly Report on Form 10-Q for more information on reportable segments.
Key Performance, Operating Metrics and Additional Financial Measures and Other Data Evaluated by Management
In assessing the performance of our business, we consider a variety of operating and financial measures and metrics. These measures and metrics include:
NUMBER OF SOHO HOUSES. The number of Soho Houses reflects the total number of Soho Houses in operation in any period, irrespective of whether each House is (i) controlled by us, (ii) operated through a non-controlling interest in a joint venture or (iii) operated under a management contract.
We review the number of members from all Houses to assess new member growth, total House Revenues, and House-Level Contribution.
NUMBER OF SOHO HOUSE MEMBERS. Our Soho House membership model is an integral part of our business and has a significant impact on our profitability and financial performance. Typically, members hold an Every House membership or a Local House membership. Member count is the primary driver of Membership Revenues and is also a critical factor in driving In-House Revenues as members utilize the offerings that are provided within the Houses. Soho House members include all active, frozen and non-paying members.
The extent to which we achieve growth in our membership base, retain existing members and periodically increase our membership fee rates will impact our profitability. We have historically enjoyed strong member loyalty, reflected by very high retention rates. Robust demand for our memberships is also evidenced by considerable wait lists for our Houses.
The year-over-year increase in our total number of Soho House Members is driven by a combination of increases in membership at existing Houses and members from new Houses.
SOHO HOUSE MEMBER RETENTION. Soho House Member Retention is defined as the number of Adult Paying Members (being all Soho House members excluding child members and complimentary members) at the beginning of a period less the number of Adult Paying Members who canceled their membership during that same period (without giving any effect to Adult Paying Members who froze their memberships during such period), as a proportion of total Adult Paying Members at the beginning of such period.
NUMBER OF OTHER MEMBERS. Other members include members of Soho Works and Soho Friends are key to our growth strategy and enhancing our Soho House member experience. Like Adult Paying members, other memberships are an integral part of our business and we believe will have a significant impact on our profitability and financial performance in the future.
FROZEN MEMBERS. Frozen Members refers to Adult Paying Members who have elected to suspend their membership payments on a six, nine- or twelve-month basis during which period the member is not able to gain access to a Soho House site as a member, access our membership Apps, or book bedrooms or
47
Cowshed treatments or products on discounted member rates. Frozen Members are not included in Adult Paying Members, but are included in the total number of Soho House members.
MEMBERSHIP REVENUES. Membership Revenues are comprised of House Membership Revenues (as defined below) and Non-House Membership Revenues (as defined below). House Membership Revenues and Non-House Membership Revenues are each comprised primarily of annual membership fees and one-time registration fees which are amortized over 20 years. The one-time registration fee is no longer applicable to new members admitted from April 4, 2022; see "House Introduction Credits" below. Membership Revenues are a function of the number of members, membership mix, and membership pricing. For GAAP, we report Membership Revenues only from Houses and sites in which we own a controlling interest. Our membership pricing varies by geographic segment and membership offering and, as such, our mix of House and Soho Works club openings can affect our revenue growth and profitability over time. Prices are generally higher in The Americas and the RoW compared with the UK and Europe. Membership Revenues provide a stable and recurring source of revenues which have few direct costs and, as such, is a reliable and predictable source of cash flow.
HOUSE INTRODUCTION CREDITS. New members admitted from April 4, 2022 have been required to purchase House Introduction Credits as part of their membership, per the House rules. House Introduction Credits are credits of an equivalent value to cash within Houses and are redeemable to purchase food and beverage items, and bedroom stays, at the Houses. House Introduction Credits expire after the first three months from the date of issuance, where legally permitted in the regions we operate, if not utilized or if the Company terminates a member’s House membership. House Introduction Credits are recognized upon issuance as deferred revenue on our consolidated balance sheets. Revenue from House Introduction Credits are recognized as In-House revenues when redeemed by members, and as breakage revenue within Membership revenues upon expiration or in the period that we are able to reliably estimate expected breakage to the extent that they are unredeemed, are recognized.
HOUSE MEMBERSHIP REVENUES. House Membership Revenues are comprised primarily of annual membership fees and one-time legacy registration fees from Adult Paying Members which are amortized over 20 years. The one-time registration fee is no longer applicable to new members admitted from April 4, 2022; see "House Introduction Credits" above.
IN-HOUSE REVENUES. In-House Revenues refer to all revenues realized within our Houses, and primarily includes revenues from food and beverage, accommodation, and spa products and treatments.
HOUSE REVENUES. House Revenues is defined as Membership revenues plus In-House revenues, less Non-House Membership Revenues. Our management views House Membership Revenues and In-House Revenues as interrelated and their aggregation as important in tracking House performance. Although there is no minimum spend for any member on In-House offerings, in practice most members consume food and beverage, accommodations and other offerings at our Houses. The pricing of our In-House offerings is reflective of the fact that the significant majority of In-House offerings that generate In-House revenues are consumed by members who also pay a membership fee in relation to that House, with pricing of such In-House offerings being identical for both members and non-members.
OTHER REVENUES. Other revenues are defined as total revenues that are not realized within our Houses, including revenues from Scorpios, Soho Works and our stand-alone restaurants, procurement fees from SHD, Soho Home retail products and Cowshed services and brand license fees and other revenues from products and services that we provide outside of our Houses. Additionally, this category also includes management fees from hotel management contracts for The Ned Sites and the LINE and Saguaro hotels.
NON-HOUSE MEMBERSHIP REVENUES. Non-House Membership Revenues are comprised of Soho Works membership revenues and Soho Friends membership revenue.
ACTIVE APP USERS. Active App Users is defined as unique users who have logged into any of our membership Apps within the previous three months.
AVERAGE DAILY RATE ("ADR"). Average Daily Rate represents the average rental income per paid occupied room. We believe this is a meaningful indicator of our performance.
REVENUE PER AVAILABLE ROOM ("RevPAR"). The key industry standard for measuring hotel-operating performance is RevPAR, which is calculated by multiplying the percentage of occupied rooms to available rooms by the ADR realized. We believe RevPAR is a meaningful indicator of our performance because it measures the period-over-period change in room revenues for comparable properties. RevPAR may not be comparable to similarly titled measures, such as revenues, and should not be viewed as necessarily correlating with our revenue. We also believe occupancy and ADR, which are components of calculating RevPAR, are meaningful indicators of our performance. Where this is presented on a like-for like basis, RevPAR is adjusted for new or divested sites, for example Houses that were not open in the comparison period.
Non-GAAP Financial Measures
We refer to Adjusted EBITDA, House-Level Contribution, House-Level Contribution Margin, Other Contribution and Other Contribution Margin throughout this Quarterly Report on Form 10-Q, as we use these measures to evaluate our operating performance and each of these measures is defined in “Non-GAAP Financial Measures.” We believe these measures are useful to investors in evaluating our operating performance. Adjusted EBITDA, House-Level Contribution, House-Level Contribution Margin, Other Contribution and Other Contribution Margin are all supplemental measures of our performance that are neither required by, nor presented in accordance with, GAAP. Adjusted EBITDA, House-Level Contribution, House-Level Contribution Margin, Other Contribution and Other Contribution Margin should not be considered as substitutes for GAAP metrics such as Operating Income (Loss) and Net Loss or any other performance measure derived in accordance with GAAP. Some of our financial and operational data that we disclose in this Quarterly Report on Form 10-Q are presented on a ‘constant currency’ basis to isolate the effect of currency changes during the period. Where we refer to a measure being calculated in ‘constant currency’, we are calculating the USD change and the percent change as if the exchange rate that is being used in the current period was in effect for
48
the prior period presented. We believe that this calculation provides a more meaningful indication of actual year-over-year performance and eliminates the fluctuations from currency exchange rates.
49
KEY PERFORMANCE AND OPERATING METRICS
|
|
As of |
|
|||||
|
|
September 29, |
|
|
October 1, |
|
||
|
|
(Unaudited) |
|
|||||
Number of Soho Houses |
|
|
45 |
|
|
|
42 |
|
The Americas |
|
|
17 |
|
|
|
15 |
|
United Kingdom |
|
|
14 |
|
|
|
13 |
|
Europe/RoW |
|
|
14 |
|
|
|
14 |
|
Number of Soho House Members |
|
|
208,078 |
|
|
|
184,542 |
|
The Americas |
|
|
79,020 |
|
|
|
67,664 |
|
United Kingdom |
|
|
72,777 |
|
|
|
67,931 |
|
Europe/RoW |
|
|
44,402 |
|
|
|
39,850 |
|
All Other |
|
|
11,879 |
|
|
|
9,097 |
|
Number of Other Members |
|
|
59,416 |
|
|
|
70,710 |
|
The Americas |
|
|
16,081 |
|
|
|
19,239 |
|
United Kingdom |
|
|
35,630 |
|
|
|
42,402 |
|
Europe/RoW |
|
|
7,705 |
|
|
|
9,069 |
|
Number of Total Members |
|
|
267,494 |
|
|
|
255,252 |
|
Number of Active App Users |
|
|
212,993 |
|
|
|
187,759 |
|
|
|
For the 13 Weeks Ended |
|
|
For the 13 Weeks Ended |
|
|
For the 39 Weeks Ended |
|
|
For the 39 Weeks Ended |
|
||||||||||||||||||||
|
|
September 29, |
|
|
October 1, |
|
|
September 29, |
|
|
October 1, |
|
|
September 29, |
|
|
October 1, |
|
|
September 29, |
|
|
October 1, |
|
||||||||
|
|
Actuals |
|
|
Constant Currency(1) |
|
|
Actuals |
|
|
Constant Currency(1) |
|
||||||||||||||||||||
|
|
(Unaudited, dollar amounts in thousands, except percentages) |
|
(Unaudited, dollar amounts in thousands, except percentages) |
|
|||||||||||||||||||||||||||
Operating income (loss) |
|
$ |
37,884 |
|
|
$ |
(27,386 |
) |
|
$ |
37,884 |
|
|
$ |
(33,721 |
) |
|
$ |
615 |
|
|
$ |
(8,072 |
) |
|
$ |
615 |
|
|
$ |
(18,183 |
) |
Operating loss margin |
|
|
11 |
% |
|
|
(9 |
)% |
|
|
11 |
% |
|
|
(9 |
)% |
|
|
0 |
% |
|
|
(1 |
)% |
|
|
0 |
% |
|
|
(1 |
)% |
House-Level Contribution |
|
|
60,835 |
|
|
|
51,957 |
|
|
|
60,835 |
|
|
|
50,230 |
|
|
|
167,717 |
|
|
|
150,895 |
|
|
|
167,717 |
|
|
|
147,207 |
|
House-Level Contribution Margin |
|
|
28 |
% |
|
|
26 |
% |
|
|
28 |
% |
|
|
26 |
% |
|
|
26 |
% |
|
|
25 |
% |
|
|
26 |
% |
|
|
25 |
% |
Other Contribution |
|
|
27,064 |
|
|
|
21,816 |
|
|
|
27,064 |
|
|
|
22,136 |
|
|
|
50,287 |
|
|
|
46,857 |
|
|
|
50,287 |
|
|
|
46,729 |
|
Other Contribution Margin |
|
|
24 |
% |
|
|
23 |
% |
|
|
24 |
% |
|
|
23 |
% |
|
|
20 |
% |
|
|
20 |
% |
|
|
20 |
% |
|
|
20 |
% |
Adjusted EBITDA |
|
|
48,281 |
|
|
|
35,055 |
|
|
|
48,281 |
|
|
|
36,763 |
|
|
|
99,612 |
|
|
|
85,642 |
|
|
|
99,612 |
|
|
|
88,261 |
|
Percentage of total revenues |
|
|
14 |
% |
|
|
12 |
% |
|
|
14 |
% |
|
|
12 |
% |
|
|
11 |
% |
|
|
10 |
% |
|
|
11 |
% |
|
|
10 |
% |
50
Results of Operations
Comparison of the 13 weeks ended September 29, 2024 and October 1, 2023
The following table summarizes our results of operations for the 13 weeks ended September 29, 2024 and October 1, 2023 (in thousands, except percentages):
|
|
For the 13 Weeks Ended |
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
September 29, |
|
|
October 1, |
|
|
|
|
|
October 1, |
|
|
|
|
|||||
|
|
Actuals |
|
|
|
|
|
Currency(1) |
|
|
|
|
||||||||
|
|
(Dollar amounts in thousands) |
|
|
Change % |
|
|
(Dollar amounts in thousands) |
|
|
Constant |
|
||||||||
|
|
(Unaudited) |
|
|||||||||||||||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Membership revenues |
|
$ |
107,394 |
|
|
$ |
92,049 |
|
|
|
17 |
% |
|
$ |
94,411 |
|
|
|
14 |
% |
In-House revenues |
|
|
120,658 |
|
|
|
115,223 |
|
|
|
5 |
% |
|
|
118,700 |
|
|
|
2 |
% |
Other revenues |
|
|
105,316 |
|
|
|
86,115 |
|
|
|
22 |
% |
|
|
89,567 |
|
|
|
18 |
% |
Total revenues |
|
|
333,368 |
|
|
|
293,387 |
|
|
|
14 |
% |
|
|
302,678 |
|
|
|
10 |
% |
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
In-House operating expenses (exclusive of depreciation and amortization) |
|
|
(158,790 |
) |
|
|
(147,231 |
) |
|
|
(8 |
)% |
|
|
(154,403 |
) |
|
|
(3 |
)% |
Other operating expenses (exclusive of depreciation and amortization) |
|
|
(86,679 |
) |
|
|
(72,383 |
) |
|
|
(20 |
)% |
|
|
(75,909 |
) |
|
|
(14 |
)% |
General and administrative expenses (exclusive of depreciation and amortization) |
|
|
(39,672 |
) |
|
|
(35,564 |
) |
|
|
(12 |
)% |
|
|
(37,297 |
) |
|
|
(6 |
)% |
Pre-opening expenses |
|
|
(2,561 |
) |
|
|
(5,094 |
) |
|
|
50 |
% |
|
|
(5,342 |
) |
|
|
52 |
% |
Depreciation and amortization |
|
|
(26,017 |
) |
|
|
(24,503 |
) |
|
|
(6 |
)% |
|
|
(25,697 |
) |
|
|
(1 |
)% |
Share-based compensation |
|
|
(3,513 |
) |
|
|
(4,683 |
) |
|
|
25 |
% |
|
|
(4,911 |
) |
|
|
28 |
% |
Foreign exchange gain (loss), net |
|
|
39,591 |
|
|
|
(30,698 |
) |
|
n/m |
|
|
|
(32,193 |
) |
|
n/m |
|
||
Loss on impairment of long-lived assets |
|
|
(14,068 |
) |
|
|
— |
|
|
n/m |
|
|
|
— |
|
|
n/m |
|
||
Other |
|
|
(3,775 |
) |
|
|
(617 |
) |
|
n/m |
|
|
|
(647 |
) |
|
n/m |
|
||
Total operating expenses |
|
|
(295,484 |
) |
|
|
(320,773 |
) |
|
|
8 |
% |
|
|
(336,399 |
) |
|
|
12 |
% |
Operating income (loss) |
|
|
37,884 |
|
|
|
(27,386 |
) |
|
n/m |
|
|
|
(33,721 |
) |
|
n/m |
|
||
Other (expense) income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest expense, net |
|
|
(20,658 |
) |
|
|
(18,799 |
) |
|
|
(10 |
)% |
|
|
(19,715 |
) |
|
|
(5 |
)% |
Gain on sale of property and other, net |
|
|
(236 |
) |
|
|
7 |
|
|
n/m |
|
|
|
7 |
|
|
n/m |
|
||
Share of income of equity method investments |
|
|
1,754 |
|
|
|
1,953 |
|
|
|
(10 |
)% |
|
|
2,048 |
|
|
|
(14 |
)% |
Total other expense, net |
|
|
(19,140 |
) |
|
|
(16,839 |
) |
|
|
(14 |
)% |
|
|
(17,660 |
) |
|
|
(8 |
)% |
Income (loss) before income taxes |
|
|
18,744 |
|
|
|
(44,225 |
) |
|
n/m |
|
|
|
(51,381 |
) |
|
n/m |
|
||
Income tax benefit |
|
|
(18,026 |
) |
|
|
(4,208 |
) |
|
n/m |
|
|
|
(4,413 |
) |
|
n/m |
|
||
Net income (loss) |
|
|
718 |
|
|
|
(48,433 |
) |
|
n/m |
|
|
|
(55,794 |
) |
|
n/m |
|
||
Net income (loss) attributable to noncontrolling interest |
|
|
(543 |
) |
|
|
(912 |
) |
|
|
40 |
% |
|
|
(956 |
) |
|
|
43 |
% |
Net income (loss) attributable to Soho House & Co Inc. |
|
$ |
175 |
|
|
$ |
(49,345 |
) |
|
n/m |
|
|
$ |
(56,750 |
) |
|
n/m |
|
||
51
Components of Operating Results
Revenues
Total Revenue
|
|
For the 13 Weeks Ended |
|
|
Percent Change |
|
||||||||||
|
|
September 29, |
|
|
October 1, |
|
|
Actuals |
|
|
Constant |
|
||||
|
|
(Dollar amounts in thousands) |
|
|
|
|
|
|
|
|||||||
|
|
(Unaudited) |
|
|||||||||||||
Total revenues |
|
$ |
333,368 |
|
|
$ |
293,387 |
|
|
|
14 |
% |
|
|
10 |
% |
The Americas |
|
|
113,668 |
|
|
|
102,663 |
|
|
|
11 |
% |
|
|
11 |
% |
United Kingdom |
|
|
100,266 |
|
|
|
91,319 |
|
|
|
10 |
% |
|
|
5 |
% |
Europe/RoW |
|
|
81,161 |
|
|
|
65,681 |
|
|
|
24 |
% |
|
|
18 |
% |
All Other |
|
|
38,273 |
|
|
|
33,724 |
|
|
|
13 |
% |
|
|
8 |
% |
Membership Revenues
|
|
For the 13 Weeks Ended |
|
|
Percent Change |
|
||||||||||
|
|
September 29, |
|
|
October 1, |
|
|
Actuals |
|
|
Constant |
|
||||
|
|
(Dollar amounts in thousands) |
|
|
|
|
|
|
|
|||||||
|
|
(Unaudited) |
|
|||||||||||||
Membership revenues |
|
$ |
107,394 |
|
|
$ |
92,049 |
|
|
|
17 |
% |
|
|
14 |
% |
The Americas |
|
|
51,089 |
|
|
|
43,574 |
|
|
|
17 |
% |
|
|
17 |
% |
United Kingdom |
|
|
31,822 |
|
|
|
27,115 |
|
|
|
17 |
% |
|
|
12 |
% |
Europe/RoW |
|
|
11,758 |
|
|
|
10,386 |
|
|
|
13 |
% |
|
|
8 |
% |
All Other |
|
|
12,725 |
|
|
|
10,974 |
|
|
|
16 |
% |
|
|
11 |
% |
Membership revenues increased by 17% to $107,394 for the 13 weeks ended September 29, 2024 predominantly driven by an increase in Adult Paying Members of 11%, or 16,500, who joined after the end of the 13 weeks ended October 1, 2023. Additionally, all Soho House Adult paying fees were increased at the start of fiscal 2023, impacting members on their renewal date throughout fiscal 2023.
All Soho House Adult paying fees increased in January 2024, with in general a low single-digit price rise for existing members and a mid single-digit increase
in price for new members. This increase will impact new members on the date they join and existing members on their renewal date.
There was also an increase in Non-House Membership revenues of $343. This was driven by Soho Works as a result of increased membership fees in fiscal 2024, partially offset by a reduction in the number of Soho Friends members in comparison to the 13 weeks ended October 1, 2023.
The Americas segment saw an increase in membership revenues of $7,515, or 17%, due to approximately 8,800, or 15% increase in Adult Paying Soho House members year-on-year, with the opening of Soho House Sao Paulo (June, 2024), Soho House Portland (March, 2024) and Soho House Mexico City (September 2023), as well as growth across existing Houses. The impact of the membership fee increases noted also contributed to the increase in Membership revenues.
Our United Kingdom segment saw an increase in Membership revenues of $4,707, or 17% , due to approximately 2,900, or 5% increase in Adult Paying Soho House members, driven by growth in existing Houses, coupled with the impact of the House membership fee increases as noted above. Although Soho Mews House opened in London in late September 2024, no paying members were active as of September 29, 2024. In constant currency, Membership revenues in the United Kingdom segment increased by $3,386, or 12%.
The Europe/RoW segment saw an increase in Membership revenues of $1,372, or 13%, due to approximately 2,500, or 10% increase in Adult paying members, driven by growth in existing Houses, alongside revenue impact of the House membership fee increases as noted above. In constant currency, Membership revenues in the Europe/RoW segment increased by $866, or 8%.
All Other saw an increase in Membership revenues of $1,751, or 16%, predominantly driven by approximately 2,300, or 28% more CWH Adult Paying Members, with the growth rate offset by a decline of approximately 11,300 Non-House members in comparison to the third quarter of fiscal 2023. In constant currency, All Other Membership revenues increased by $1,216, or 11%.
In constant currency, Membership revenues increased by $12,983, or 14%.
52
In-House Revenues
|
|
For the 13 Weeks Ended |
|
|
Percent Change |
|
||||||||||
|
|
September 29, |
|
|
October 1, |
|
|
Actuals |
|
|
Constant |
|
||||
|
|
(Dollar amounts in thousands) |
|
|
|
|
|
|
|
|||||||
|
|
(Unaudited) |
|
|||||||||||||
In-House revenues |
|
$ |
120,658 |
|
|
$ |
115,223 |
|
|
|
5 |
% |
|
|
2 |
% |
The Americas |
|
|
46,646 |
|
|
|
43,842 |
|
|
|
6 |
% |
|
|
6 |
% |
United Kingdom |
|
|
48,287 |
|
|
|
45,539 |
|
|
|
6 |
% |
|
|
1 |
% |
Europe/RoW |
|
|
25,725 |
|
|
|
25,842 |
|
|
n/m |
|
|
|
(5 |
)% |
|
In-House revenues were $120,658 for the 13 weeks ended September 29, 2024, an increase of $5,435 versus the comparative period in 2023. Revenues were supported by four new Houses that opened since the beginning of the 13 weeks ended October 1, 2023, including Soho Mews House which opened in London in late September 2024, but did not meaningfully contribute to In-House revenues in the quarter.
The Americas In-House revenues were $46,646 for the 13 weeks ended September 29, 2024, an increase of $2,804 versus the 13 weeks ended October 1, 2023. The region benefited from the opening of Soho House Mexico City (September 2023), Soho House Portland (March 2024) and Soho House Sao Paulo (June 2024).
In-House revenues in our United Kingdom segment saw an increase of $2,748 versus the 13 weeks ended October 1, 2023, with notably strong year-over-year performance at our countryside sites. In constant currency, In-House Revenues in the United Kingdom segment saw an increase of $530, or 1%.
The Europe/RoW segment decreased in-House revenues by $117 year-on-year. The majority of Houses saw growth year-over-year, however this was offset by weaker performance in our Tel Aviv House versus comparative period driven by external factors. In constant currency, In-House Revenues in the Europe/RoW segment a decrease by $1,376 or 5%.
In constant currency, In-House Revenues increased by $1,958, or 2%.
Other Revenues
|
|
For the 13 Weeks Ended |
|
|
Percent Change |
|
||||||||||
|
|
September 29, |
|
|
October 1, |
|
|
Actuals |
|
|
Constant |
|
||||
|
|
(Dollar amounts in thousands) |
|
|
|
|
|
|
|
|||||||
|
|
(Unaudited) |
|
|||||||||||||
Other revenues |
|
$ |
105,316 |
|
|
$ |
86,115 |
|
|
|
22 |
% |
|
|
18 |
% |
The Americas |
|
|
15,933 |
|
|
|
15,247 |
|
|
|
4 |
% |
|
|
4 |
% |
United Kingdom |
|
|
20,157 |
|
|
|
18,665 |
|
|
|
8 |
% |
|
|
3 |
% |
Europe/RoW |
|
|
43,678 |
|
|
|
29,453 |
|
|
|
48 |
% |
|
|
41 |
% |
All Other |
|
|
25,548 |
|
|
|
22,750 |
|
|
|
12 |
% |
|
|
7 |
% |
Other revenues were $105,316 for the 13 weeks ended September 29, 2024, compared to $86,115 for the 13 weeks ended October 1, 2023, an increase of $19,201. The increase was predominantly driven by Scorpios Bodrum (June, 2024) and Soho Home growth, particularly in our retail sites.
Other revenues in The Americas segment increased $686, or 4% versus the 13 weeks ended October 1, 2023 supported by a termination fee related to one of our LINE hotel management contracts, offset by a slight decline in sales in some of the stand-alone restaurants period-on-period.
The United Kingdom segment saw an increase in Other revenues of $1,492, or 8% versus third quarter fiscal 2023 driven by higher design fees offsetting slightly softer sales year-over-year in our stand alone restaurants. In constant currency, Other Revenues in the United Kingdom segment increased by $583, or 3%.
Other revenues in the Europe/RoW segment have increased $14,225 or 48% compared to the 13 weeks ended October 1, 2023 predominantly driven by the opening of Scorpios Bodrum (June, 2024). In constant currency, Other Revenues in the Europe/RoW segment increased by $12,790, or 41%.
Other revenues in All Other have increased $2,798 or 12% period-on-period driven by growth in Soho Home, offset by Cowshed operating under brand license (since January 1, 2024), which results in recognition of royalty income in 2024 versus revenue in fiscal 2023. In constant currency, Other Revenues in All Other increased by $1,690, or 7%.
In constant currency, Other Revenues increased by $15,749, or 18%.
53
In-House Operating Expenses and House-Level Contribution
|
|
For the 13 Weeks Ended |
|
|
Percent Change |
|
||||||||||
|
|
September 29, |
|
|
October 1, |
|
|
Actuals |
|
|
Constant |
|
||||
|
|
(Dollar amounts in thousands) |
|
|
|
|
|
|
|
|||||||
|
|
(Unaudited) |
|
|||||||||||||
In-House operating expenses |
|
$ |
(158,790 |
) |
|
$ |
(147,231 |
) |
|
|
(8 |
)% |
|
|
(3 |
)% |
Percentage of total House revenues |
|
|
(72 |
)% |
|
|
(74 |
)% |
|
|
|
|
|
|
||
Operating income (loss) |
|
$ |
37,884 |
|
|
$ |
(27,386 |
) |
|
n/m |
|
|
n/m |
|
||
Operating margin |
|
|
11 |
% |
|
|
(9 |
)% |
|
|
|
|
|
|
||
House-Level Contribution |
|
$ |
60,835 |
|
|
$ |
51,957 |
|
|
|
17 |
% |
|
|
21 |
% |
House-Level Contribution Margin |
|
|
28 |
% |
|
|
26 |
% |
|
|
2 |
% |
|
|
|
|
House-Level Contribution by segment: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
The Americas |
|
$ |
28,895 |
|
|
$ |
24,806 |
|
|
|
16 |
% |
|
|
16 |
% |
United Kingdom |
|
|
22,243 |
|
|
|
20,277 |
|
|
|
10 |
% |
|
|
5 |
% |
Europe/RoW |
|
|
4,713 |
|
|
|
3,564 |
|
|
|
32 |
% |
|
|
26 |
% |
All Other |
|
|
4,984 |
|
|
|
3,310 |
|
|
|
51 |
% |
|
|
44 |
% |
House-Level Contribution Margin by segment: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
The Americas |
|
|
30 |
% |
|
|
28 |
% |
|
|
|
|
|
|
||
United Kingdom |
|
|
28 |
% |
|
|
28 |
% |
|
|
|
|
|
|
||
Europe/RoW |
|
|
13 |
% |
|
|
10 |
% |
|
|
|
|
|
|
||
All Other |
|
|
90 |
% |
|
|
82 |
% |
|
|
|
|
|
|
||
In-House Operating Expenses were $158,790 for the 13 weeks ended September 29, 2024, an increase of $11,559. The increase is a result of the four new Houses opened since the beginning of the 13 weeks ended October 1, 2023, alongside period-on-period wage increases. In constant currency, In-House Operating Expenses increased by $4,387.
House-Level Contribution, which is defined as House Revenues less In-House Operating Expenses, was $60,835 for the 13 weeks ended September 29, 2024, compared to $51,957 for the 13 weeks ended October 1, 2023, an increase of $8,878. The increase in House-Level Contribution predominantly relates to increased Soho House membership and In-House revenues period-on-period, offset by higher In-House operating expenses.
House-Level Contribution Margin was 28% for the 13 weeks ended September 29, 2024, an increase of 2% from the prior period due to increased revenues, especially membership. All regions increased House-Level margins period-on-period benefitting from higher membership revenue, with the exception of the United Kingdom segment which remained flat partially driven by the impact of higher inflation in In-House Operating expenses.
54
Other Operating Expenses and Other Contribution
|
|
For the 13 Weeks Ended |
|
|
Percent Change |
|
||||||||||
|
|
September 29, |
|
|
October 1, |
|
|
Actuals |
|
|
Constant |
|
||||
|
|
(Dollar amounts in thousands) |
|
|
|
|
|
|
|
|||||||
|
|
(Unaudited) |
|
|||||||||||||
Other operating expenses |
|
$ |
(86,679 |
) |
|
$ |
(72,383 |
) |
|
|
(20 |
)% |
|
|
(14 |
)% |
Percentage of total other revenues |
|
|
(76 |
)% |
|
|
(77 |
)% |
|
|
|
|
|
|
||
Operating loss |
|
$ |
37,884 |
|
|
$ |
(27,386 |
) |
|
n/m |
|
|
n/m |
|
||
Operating loss margin |
|
|
11 |
% |
|
|
(9 |
)% |
|
|
|
|
|
|
||
Other Contribution |
|
$ |
27,064 |
|
|
$ |
21,816 |
|
|
|
24 |
% |
|
|
22 |
% |
Other Contribution Margin |
|
|
24 |
% |
|
|
23 |
% |
|
|
1 |
% |
|
|
|
|
Other Contribution by segment: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
The Americas |
|
$ |
4,297 |
|
|
$ |
3,325 |
|
|
|
29 |
% |
|
|
29 |
% |
United Kingdom |
|
|
7,760 |
|
|
|
5,761 |
|
|
|
35 |
% |
|
|
28 |
% |
Europe/RoW |
|
|
15,934 |
|
|
|
13,110 |
|
|
|
22 |
% |
|
|
16 |
% |
All Other |
|
|
(927 |
) |
|
|
(380 |
) |
|
n/m |
|
|
n/m |
|
||
Other Contribution Margin by segment: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
The Americas |
|
|
26 |
% |
|
|
21 |
% |
|
|
|
|
|
|
||
United Kingdom |
|
|
37 |
% |
|
|
30 |
% |
|
|
|
|
|
|
||
Europe/RoW |
|
|
36 |
% |
|
|
44 |
% |
|
|
|
|
|
|
||
All Other |
|
|
(3 |
)% |
|
|
(1 |
)% |
|
|
|
|
|
|
||
Other Operating Expenses were $86,679 for the 13 weeks ended September 29, 2024, compared to $72,383 for the 13 weeks ended October 1, 2023, an increase of $14,296, or 20%. This increased spend is predominantly driven by the opening of the new Scorpios site in Bodrum, higher costs in relation to revenue growth at Soho Home, and write-off of design costs for Houses no longer going ahead. This increase was offset by the permanent closure of our operations at The Hoxton (July 2023) and the removal of expenses relating to Cowshed operations following the move to a brand license deal effective January 1, 2024 . In constant currency, Other Operating Expenses increased by $10,770, or 14%.
Other Contribution, which we define as Other Revenues plus Non-House Membership Revenues less Other Operating Expenses, was $27,064 for the 13 weeks ended September 29, 2024, compared to $21,816 for the 13 weeks ended October 1, 2023, an increase of $5,248 predominantly driven by Scorpios. Other Contribution Margin was 24% for the 13 weeks ended September 29, 2024, an increase of 1% compared to the 13 weeks ended October 1, 2023.
General and Administrative Expenses
|
|
For the 13 Weeks Ended |
|
|
Percent Change |
|
||||||||||
|
|
September 29, |
|
|
October 1, |
|
|
Actual |
|
|
Constant |
|
||||
|
|
(Dollar amounts in thousands) |
|
|
|
|
|
|
|
|||||||
|
|
(Unaudited) |
|
|||||||||||||
General and Administrative Expenses |
|
$ |
39,672 |
|
|
$ |
35,564 |
|
|
|
12 |
% |
|
|
6 |
% |
Percentage of total revenues |
|
|
12 |
% |
|
|
12 |
% |
|
|
|
|
|
|
||
General and Administrative Expenses were $39,672 for the 13 weeks ended September 29, 2024, compared with $35,564 for the 13 weeks ended October 1, 2023, an increase of $4,108, or 12%. The increase was driven by the cost of headcount to support business expansion, including four new Soho Houses and Scorpios Bodrum opened since the comparative period.
In constant currency, General and Administrative Expenses increased by $2,375, or 6%.
55
Pre-opening Expenses
|
|
For the 13 Weeks Ended |
|
|
Percent Change |
|
||||||||||
|
|
September 29, |
|
|
October 1, |
|
|
Actual |
|
|
Constant |
|
||||
|
|
(Dollar amounts in thousands) |
|
|
|
|
|
|
|
|||||||
|
|
(Unaudited) |
|
|||||||||||||
Pre-opening expenses |
|
$ |
2,561 |
|
|
$ |
5,094 |
|
|
|
(50 |
)% |
|
|
(52 |
)% |
Percentage of total revenues |
|
|
1 |
% |
|
|
2 |
% |
|
|
|
|
|
|
||
Pre-opening expenses were $2,561 for the 13 weeks ended September 29, 2024 compared to $5,094 in the 13 weeks ended October 1, 2023. This decrease was primarily driven by the size and location of House openings. The House opening in the period was a small House in an established market (London) so for example travel costs are lower, in comparison to the opening of a large House in a new market, Mexico City. In constant currency pre-opening expenses reduced by 52%.
Depreciation and Amortization
|
|
For the 13 Weeks Ended |
|
|
Percent Change |
|
||||||||||
|
|
September 29, |
|
|
October 1, |
|
|
Actual |
|
|
Constant |
|
||||
|
|
(Dollar amounts in thousands) |
|
|
|
|
|
|
|
|||||||
|
|
(Unaudited) |
|
|||||||||||||
Depreciation and amortization |
|
$ |
26,017 |
|
|
$ |
24,503 |
|
|
|
6 |
% |
|
|
1 |
% |
Percentage of total revenues |
|
|
8 |
% |
|
|
8 |
% |
|
|
|
|
|
|
||
Depreciation and amortization were $26,017 for the 13 weeks ended September 29, 2024, an increase of $1,514, or 6%, from the 13 weeks ended October 1, 2023. The increase period-on-period was driven predominately by increases from 2023/2024 Houses and spend in IT to support key membership and compliance initiatives offset by a reduction across Soho Works sites. In constant currency, depreciation and amortization expenses increased by $320, or 1%.
Other Expenses
|
|
For the 13 Weeks Ended |
|
|
Percent Change |
|
||||||||||
|
|
September 29, |
|
|
October 1, |
|
|
Actual |
|
|
Constant |
|
||||
|
|
(Dollar amounts in thousands) |
|
|
|
|
|
|
|
|||||||
|
|
(Unaudited) |
|
|||||||||||||
Share-based compensation |
|
$ |
3,513 |
|
|
$ |
4,683 |
|
|
|
(25 |
)% |
|
|
(28 |
)% |
Percentage of total revenues |
|
|
1 |
% |
|
|
2 |
% |
|
|
|
|
|
|
||
Foreign exchange (gain) loss , net |
|
$ |
(39,591 |
) |
|
$ |
30,698 |
|
|
n/m |
|
|
n/m |
|
||
Percentage of total revenues |
|
|
(12 |
)% |
|
|
10 |
% |
|
|
|
|
|
|
||
Loss on impairment of long-lived assets |
|
$ |
14,068 |
|
|
$ |
- |
|
|
n/m |
|
|
n/m |
|
||
Percentage of total revenues |
|
|
4 |
% |
|
|
0 |
% |
|
|
|
|
|
|
||
Other, net |
|
$ |
3,775 |
|
|
$ |
617 |
|
|
n/m |
|
|
n/m |
|
||
Percentage of total revenues |
|
|
1 |
% |
|
|
0 |
% |
|
|
|
|
|
|
||
Share-based compensation expense decreased by $1,170 to $3,513 for the 13 weeks ended September 29, 2024, primarily due to a number of SARs granted prior to the IPO fully vesting in the 13 weeks ended October 1, 2023.
Foreign exchange (gain) loss, net which is unrealized and non-cash in nature, moved from a loss of $30,698 to a gain of $(39,591) for the 13 weeks ended September 29, 2024, primarily driven by foreign exchange revaluation of our borrowings.
During the 13 weeks ended September 29, 2024, the Company recognized $14,068 of impairment losses on long-lived assets (comprised of $11 million in respect of Operating lease assets and $3 million of Property and equipment, net), of which $13 million is in respect of Soho Works North America.
56
Other expense increased by $3,158 to $3,775 for the 13 weeks ended September 29, 2024, primarily from severance costs incurred as part of a strategic reorganization program of our operations and support teams.
57
Interest Expense, Net
|
|
For the 13 Weeks Ended |
|
|
Percent Change |
|
||||||||||
|
|
September 29, |
|
|
October 1, |
|
|
Actual |
|
|
Constant |
|
||||
|
|
(Dollar amounts in thousands) |
|
|
|
|
|
|
|
|||||||
|
|
(Unaudited) |
|
|||||||||||||
Interest expense, net |
|
$ |
20,658 |
|
|
$ |
18,799 |
|
|
|
10 |
% |
|
|
5 |
% |
Percentage of total revenues |
|
|
6 |
% |
|
|
6 |
% |
|
|
|
|
|
|
||
Net Interest Expense was $20,658 for the 13 weeks ended September 29, 2024, an increase of $1,859, or 10%, to the 13 weeks ended October 1, 2023. This increase is primarily driven by the higher principal amount on our Senior Secured Notes due to the compounding of this debt. In constant currency, net interest increased by $943 or 5%.
Adjusted EBITDA
|
|
For the 13 Weeks Ended |
|
|
Percent Change |
|
||||||||||
|
|
September 29, |
|
|
October 1, |
|
|
Actual |
|
|
Constant |
|
||||
|
|
(Dollar amounts in thousands) |
|
|
|
|
|
|
|
|||||||
|
|
(Unaudited) |
|
|||||||||||||
Adjusted EBITDA |
|
$ |
48,281 |
|
|
$ |
35,055 |
|
|
|
38 |
% |
|
|
31 |
% |
Percentage of total revenues |
|
|
14 |
% |
|
|
12 |
% |
|
|
|
|
|
|
||
Adjusted EBITDA was $48,281 for the 13 weeks ended September 29, 2024, in comparison to $35,055 for the 13 weeks ended October 1, 2023, an increase of $13,226. The increase is driven by higher membership revenues from both Soho House and Non-House members versus the comparative period as well as higher In-House and other revenues. These were offset by an increase in General and Administrative and Operating expenses, partially resulting from new House openings. In constant currency, adjusted EBITDA increased by $11,518 or 31%.
58
Comparison of the 39 weeks ended September 29, 2024 and October 1, 2023
The following table summarizes our results of operations for the 39 weeks ended September 29, 2024 and October 1, 2023 (in thousands, except percentages):
|
|
For the 39 Weeks Ended |
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
September 29, |
|
|
October 1, |
|
|
|
|
|
October 1, |
|
|
|
|
|||||
|
|
Actuals |
|
|
|
|
|
Currency(1) |
|
|
|
|
||||||||
|
|
(Dollar amounts in thousands) |
|
|
Change % |
|
|
(Dollar amounts in thousands) |
|
|
Constant |
|
||||||||
|
|
(Unaudited) |
|
|||||||||||||||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Membership revenues |
|
$ |
308,690 |
|
|
$ |
262,062 |
|
|
|
18 |
% |
|
|
266,231 |
|
|
|
16 |
% |
In-House revenues |
|
|
358,213 |
|
|
|
356,862 |
|
|
|
0 |
% |
|
|
363,319 |
|
|
|
(1 |
)% |
Other revenues |
|
|
231,356 |
|
|
|
216,225 |
|
|
|
7 |
% |
|
|
221,277 |
|
|
|
5 |
% |
Total revenues |
|
|
898,259 |
|
|
|
835,149 |
|
|
|
8 |
% |
|
|
850,827 |
|
|
|
6 |
% |
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
In-House operating expenses (exclusive of depreciation and amortization) |
|
|
(474,240 |
) |
|
|
(444,658 |
) |
|
|
(7 |
)% |
|
|
(458,257 |
) |
|
|
(3 |
)% |
Other operating expenses (exclusive of depreciation and amortization) |
|
|
(206,015 |
) |
|
|
(192,739 |
) |
|
|
(7 |
)% |
|
|
(198,634 |
) |
|
|
(4 |
)% |
General and administrative expenses |
|
|
(112,770 |
) |
|
|
(103,381 |
) |
|
|
(9 |
)% |
|
|
(106,543 |
) |
|
|
(6 |
)% |
Pre-opening expenses |
|
|
(13,958 |
) |
|
|
(14,369 |
) |
|
|
3 |
% |
|
|
(14,808 |
) |
|
|
6 |
% |
Depreciation and amortization |
|
|
(76,642 |
) |
|
|
(74,162 |
) |
|
|
(3 |
)% |
|
|
(76,430 |
) |
|
|
(0 |
)% |
Share-based compensation |
|
|
(15,150 |
) |
|
|
(16,186 |
) |
|
|
6 |
% |
|
|
(16,681 |
) |
|
|
9 |
% |
Foreign exchange gain (loss), net |
|
|
28,937 |
|
|
|
3,899 |
|
|
n/m |
|
|
|
4,018 |
|
|
n/m |
|
||
Loss on impairment of long-lived assets |
|
|
(14,068 |
) |
|
|
— |
|
|
n/m |
|
|
|
— |
|
|
n/m |
|
||
Other, net |
|
|
(13,738 |
) |
|
|
(1,625 |
) |
|
n/m |
|
|
|
(1,675 |
) |
|
n/m |
|
||
Total operating expenses |
|
|
(897,644 |
) |
|
|
(843,221 |
) |
|
|
(6 |
)% |
|
|
(869,010 |
) |
|
|
(3 |
)% |
Operating income (loss) |
|
|
615 |
|
|
|
(8,072 |
) |
|
n/m |
|
|
|
(18,183 |
) |
|
n/m |
|
||
Other (expense) income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest expense, net |
|
|
(61,846 |
) |
|
|
(59,527 |
) |
|
|
(4 |
)% |
|
|
(61,348 |
) |
|
|
(1 |
)% |
Gain on sale of property and other, net |
|
|
(62 |
) |
|
|
596 |
|
|
n/m |
|
|
|
614 |
|
|
n/m |
|
||
Share of income of equity method investments |
|
|
3,645 |
|
|
|
4,411 |
|
|
|
(17 |
)% |
|
|
4,546 |
|
|
|
(20 |
)% |
Total other expense, net |
|
|
(58,263 |
) |
|
|
(54,520 |
) |
|
|
(7 |
)% |
|
|
(56,188 |
) |
|
|
(4 |
)% |
Income (loss) before income taxes |
|
|
(57,648 |
) |
|
|
(62,592 |
) |
|
|
8 |
% |
|
|
(74,371 |
) |
|
|
22 |
% |
Income tax expense |
|
|
(13,697 |
) |
|
|
(5,386 |
) |
|
n/m |
|
|
|
(5,551 |
) |
|
n/m |
|
||
Net income (loss) |
|
|
(71,345 |
) |
|
|
(67,978 |
) |
|
|
(5 |
)% |
|
|
(79,922 |
) |
|
|
11 |
% |
Net (income) loss attributable to noncontrolling interest |
|
|
62 |
|
|
|
(1,205 |
) |
|
n/m |
|
|
|
(1,242 |
) |
|
n/m |
|
||
Net income (loss) attributable to Soho House & Co Inc. |
|
$ |
(71,283 |
) |
|
$ |
(69,183 |
) |
|
|
(3 |
)% |
|
$ |
(81,164 |
) |
|
|
12 |
% |
Components of Operating Results
Revenues
Total Revenue
|
|
For the 39 Weeks Ended |
|
|
Percent Change |
|
||||||||||
|
|
September 29, |
|
|
October 1, |
|
|
Actuals |
|
|
Constant |
|
||||
|
|
(Dollar amounts in thousands) |
|
|
|
|
|
|
|
|||||||
|
|
Unaudited |
|
|||||||||||||
Total revenues |
|
$ |
898,259 |
|
|
$ |
835,149 |
|
|
|
8 |
% |
|
|
6 |
% |
The Americas |
|
|
347,388 |
|
|
|
322,533 |
|
|
|
8 |
% |
|
|
8 |
% |
United Kingdom |
|
|
274,262 |
|
|
|
259,082 |
|
|
|
6 |
% |
|
|
3 |
% |
Europe/RoW |
|
|
164,429 |
|
|
|
146,877 |
|
|
|
12 |
% |
|
|
9 |
% |
All Other |
|
|
112,180 |
|
|
|
106,657 |
|
|
|
5 |
% |
|
|
2 |
% |
59
Membership Revenues
|
|
For the 39 Weeks Ended |
|
|
Percent Change |
|
||||||||||
|
|
September 29, |
|
|
October 1, |
|
|
Actuals |
|
|
Constant |
|
||||
|
|
(Dollar amounts in thousands) |
|
|
|
|
|
|
|
|||||||
|
|
Unaudited |
|
|||||||||||||
Membership revenues |
|
$ |
308,690 |
|
|
$ |
262,062 |
|
|
|
18 |
% |
|
|
16 |
% |
The Americas |
|
|
146,573 |
|
|
|
125,769 |
|
|
|
17 |
% |
|
|
17 |
% |
United Kingdom |
|
|
90,843 |
|
|
|
76,298 |
|
|
|
19 |
% |
|
|
16 |
% |
Europe/RoW |
|
|
34,110 |
|
|
|
28,840 |
|
|
|
18 |
% |
|
|
15 |
% |
All Other |
|
|
37,164 |
|
|
|
31,155 |
|
|
|
19 |
% |
|
|
16 |
% |
Membership revenues increased by 18% (16% constant currency) to $308,690 for the 39 weeks ended September 29, 2024, predominantly driven by an increase in Adult Paying Members of 11%, or 16,500, who joined after the end of the 39 weeks ended October 1, 2023
All Soho House Adult paying fees increased in January 2024, with in general a low single-digit price rise for existing members and a mid single-digit increase
in price for new members. This increase will impact new members on the date they join and existing members on their renewal date.
There was also an increase in Non-House Membership revenues of $1,575, this was driven by Soho Works as a result of increased membership fees in fiscal
2024. This was offset slightly by a reduction in the number of Soho Friends members in comparison to the end of the 39 weeks ended October 1, 2023.
The Americas segment saw an increase in revenues of $20,804, or 17% , due to approximately 8,800, or 15% increase in Adult Paying Soho House members year-on-year, with the opening of Soho House Sao Paulo (June 2024), Soho House Portland (March 2024) and Soho House Mexico City (September 2023), as well as growth across existing Houses. The impact of the membership fee increases noted also contributed to the increase in Membership revenues.
Our United Kingdom segment saw an increase in Membership revenues of $14,545, or 19% (16% constant currency), due to approximately 2,900, or 5% increase in Adult Paying Soho House members, driven by growth in existing Houses, coupled with the impact of the House membership fee increases as noted above. Although Soho Mews House opened in London in late September 2024, no paying members we active as of September 29, 2024.
The Europe/RoW segment saw an increase in Membership revenues of $5,270, or 18% (15% constant currency), due to approximately 2,500, or 10% increase in Adult paying members, as well as the revenue impact of the House membership fee increases as noted above.
Membership revenue reported under All Other above saw an increase predominantly driven by over 2,200, or 28% more CWH Adult Paying Members, offset by a decline of approximately 11,300 Non-House members in comparison to the third quarter of fiscal 2023.
In constant currency, Membership revenues increased by $42,459, or 16%.
In-House Revenues
|
|
For the 39 Weeks Ended |
|
|
Percent Change |
|
||||||||||
|
|
September 29, |
|
|
October 1, |
|
|
Actuals |
|
|
Constant |
|
||||
|
|
(Dollar amounts in thousands) |
|
|
|
|
|
|
|
|||||||
|
|
(Unaudited) |
|
|||||||||||||
In-House revenues |
|
$ |
358,213 |
|
|
$ |
356,862 |
|
|
|
0 |
% |
|
|
(1 |
)% |
The Americas |
|
|
150,173 |
|
|
|
145,723 |
|
|
|
3 |
% |
|
|
3 |
% |
United Kingdom |
|
|
136,649 |
|
|
|
135,137 |
|
|
|
1 |
% |
|
|
(2 |
)% |
Europe/RoW |
|
|
71,391 |
|
|
|
76,002 |
|
|
|
(6 |
)% |
|
|
(9 |
)% |
In-House revenues were $358,213 for the 39 weeks ended September 29, 2024, an increase of $1,351 versus the 39 weeks ended October 1, 2023. Revenues were supported by five new Houses that opened since the beginning of fiscal 2023, offset by underlying macroeconomic trends have adversely impacted regions throughout the period.
Our Americas segment saw an increase in In-House revenues versus the comparable period. The region saw slightly weaker like-for-like In-House performance offset by the opening of Soho House Mexico City (September 2023), Soho House Portland (March 2024) and Soho House Sao Paulo (June 2024).
60
In-House revenues in our United Kingdom segment increased slightly versus the comparative period driven by foreign exchange benefit with the underlying House performance being marginally worse versus fiscal 2023 due to underlying macroeconomic trends, further impacted by the closure of the rooftop at White City House for 11 weeks in the period due to refurbishments.
The Europe/RoW segment saw a decrease of In-House revenues year-on-year, driven by external factors resulting in a reduction in footfall in our Tel Aviv House versus comparative period, alongside room revenue declines across certain Houses. In addition, during the 39 weeks ended September 29, 2023, we recognized approximately $1,800 from the Dutch government related to COVID-19 subsidies and approximately $1,100 from a settlement to recover costs incurred on behalf of a former development partner in connection with a proposed European House opening, which impacts comparatives in Europe.
In constant currency, In-House Revenues decreased by $5,106, a decrease of 1%.
Other Revenues
|
|
For the 39 Weeks Ended |
|
|
Percent Change |
|
||||||||||
|
|
September 29, |
|
|
October 1, |
|
|
Actuals |
|
|
Constant |
|
||||
|
|
(Dollar amounts in thousands) |
|
|
|
|
|
|
|
|||||||
|
|
(Unaudited) |
|
|||||||||||||
Other revenues |
|
$ |
231,356 |
|
|
$ |
216,225 |
|
|
|
7 |
% |
|
|
5 |
% |
The Americas |
|
|
50,642 |
|
|
|
51,041 |
|
|
|
(1 |
)% |
|
|
(1 |
)% |
United Kingdom |
|
|
46,770 |
|
|
|
47,647 |
|
|
|
(2 |
)% |
|
|
(5 |
)% |
Europe/RoW |
|
|
58,928 |
|
|
|
42,035 |
|
|
|
40 |
% |
|
|
36 |
% |
All Other |
|
|
75,016 |
|
|
|
75,502 |
|
|
|
(1 |
)% |
|
|
(4 |
)% |
Other revenues were $231,356 for the 39 weeks ended September 29, 2024, compared to $216,225 for the 39 weeks ended October 1, 2023, an increase of $15,131. The increase is driven by the opening of Scorpios Bodrum (June 2024) and growth in Soho Home, offset by the movement of Cowshed to a brand license deal effective January 1, 2024, the closure of unprofitable stand-alone restaurants and the removal of a Coachella event.
Additionally, we recognized approximately $3,000 in respect of a lease promote in our Rome property from our landlord in the 39 weeks ended October 1, 2023.
In constant currency, Other Revenues increased by $10,079, an increase of 5%.
In-House Operating Expenses and House-Level Contribution
|
|
For the 39 Weeks Ended |
|
|
Percent Change |
|
||||||||||
|
|
September 29, |
|
|
October 1, |
|
|
Actuals |
|
|
Constant |
|
||||
|
|
(Dollar amounts in thousands) |
|
|
|
|
|
|
|
|||||||
|
|
(Unaudited) |
|
|||||||||||||
In-House operating expenses |
|
$ |
(474,240 |
) |
|
$ |
(444,658 |
) |
|
|
(7 |
)% |
|
|
(3 |
)% |
Percentage of total House revenues |
|
|
(74 |
)% |
|
|
(75 |
)% |
|
|
|
|
|
|
||
Operating income (loss) |
|
$ |
615 |
|
|
$ |
(8,072 |
) |
|
n/m |
|
|
n/m |
|
||
Operating margin |
|
|
0 |
% |
|
|
(1 |
)% |
|
|
|
|
|
|
||
House-Level Contribution |
|
$ |
167,717 |
|
|
$ |
150,895 |
|
|
|
11 |
% |
|
|
14 |
% |
House-Level Contribution Margin |
|
|
26 |
% |
|
|
25 |
% |
|
|
1 |
% |
|
|
|
|
House-Level Contribution by segment: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
The Americas |
|
$ |
88,804 |
|
|
$ |
79,867 |
|
|
|
11 |
% |
|
|
11 |
% |
United Kingdom |
|
|
60,203 |
|
|
|
54,628 |
|
|
|
10 |
% |
|
|
7 |
% |
Europe/RoW |
|
|
5,378 |
|
|
|
7,285 |
|
|
|
(26 |
)% |
|
|
(28 |
)% |
All Other |
|
|
13,332 |
|
|
|
9,115 |
|
|
|
46 |
% |
|
|
42 |
% |
House-Level Contribution Margin by segment: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
The Americas |
|
|
30 |
% |
|
|
30 |
% |
|
|
|
|
|
|
||
United Kingdom |
|
|
27 |
% |
|
|
26 |
% |
|
|
|
|
|
|
||
Europe/RoW |
|
|
5 |
% |
|
|
7 |
% |
|
|
|
|
|
|
||
All Other |
|
|
85 |
% |
|
|
81 |
% |
|
|
|
|
|
|
||
61
In-House Operating Expenses were $474,240 for the 39 weeks ended September 29, 2024, an increase of $29,582, driven by five additional House openings and increased wage, energy and rent costs year-on-year. In constant currency, In-House Operating Expenses increased by $15,983.
House-Level Contribution, which is defined as House Revenues less In-House Operating Expenses, was $167,717 for the 39 weeks ended September 29, 2024, compared to $150,895 for the 39 weeks ended October 1, 2023, an increase of $16,822. The increase in House-Level Contribution predominantly relates to increased Soho House membership revenues period-on-period.
House-Level Contribution Margin was 26% for the 39 weeks ended September 29, 2024, an increase of 1% from the prior period due to increased membership revenues, compared to the prior period, partially offset by the dilutive impact of five new Houses.
Other Operating Expenses and Other Contribution
|
|
For the 39 Weeks Ended |
|
|
Percent Change |
|
||||||||||
|
|
September 29, |
|
|
October 1, |
|
|
Actuals |
|
|
Constant |
|
||||
|
|
(Dollar amounts in thousands) |
|
|
|
|
|
|
|
|||||||
|
|
(Unaudited) |
|
|||||||||||||
Other operating expenses |
|
$ |
(206,015 |
) |
|
$ |
(192,739 |
) |
|
|
(7 |
)% |
|
|
(4 |
)% |
Percentage of total other revenues |
|
|
(80 |
)% |
|
|
(80 |
)% |
|
|
|
|
|
|
||
Operating loss |
|
$ |
615 |
|
|
$ |
(8,072 |
) |
|
n/m |
|
|
n/m |
|
||
Operating loss margin |
|
|
0 |
% |
|
|
(1 |
)% |
|
|
|
|
|
|
||
Other Contribution |
|
$ |
50,287 |
|
|
$ |
46,857 |
|
|
|
7 |
% |
|
|
8 |
% |
Other Contribution Margin |
|
|
20 |
% |
|
|
20 |
% |
|
|
— |
|
|
|
20 |
% |
Other Contribution by segment: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
The Americas |
|
$ |
12,738 |
|
|
$ |
8,079 |
|
|
|
58 |
% |
|
|
58 |
% |
United Kingdom |
|
|
17,813 |
|
|
|
16,472 |
|
|
|
8 |
% |
|
|
5 |
% |
Europe/RoW |
|
|
17,164 |
|
|
|
16,124 |
|
|
|
6 |
% |
|
|
3 |
% |
All Other |
|
|
2,572 |
|
|
|
6,182 |
|
|
|
(58 |
)% |
|
|
(60 |
)% |
Other Contribution Margin by segment: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
The Americas |
|
|
25 |
% |
|
|
16 |
% |
|
|
|
|
|
|
||
United Kingdom |
|
|
37 |
% |
|
|
33 |
% |
|
|
|
|
|
|
||
Europe/RoW |
|
|
29 |
% |
|
|
38 |
% |
|
|
|
|
|
|
||
All Other |
|
|
3 |
% |
|
|
6 |
% |
|
|
|
|
|
|
||
Other Operating Expenses were $206,015 for the 39 weeks ended September 29, 2024, compared with $192,739 for the 39 weeks ended October 1, 2023, an increase of $13,276. This increase is attributable increased trade volume in Soho Home and the opening of Scorpios Bodrum (June 2024), offset by the permanent closure of all but one of our Soho Restaurants, which excludes Cecconi's, at the start of fiscal 2023, the closure of The Hoxton, Shoreditch (July 2023), alongside Coachella event not being held during the current fiscal year. In constant currency, Other Operating Expenses increased by $7,381, or 4%.
Other Contribution, which we define as Other Revenues plus Non-House Membership Revenues less Other Operating Expenses, was $50,287 for the 39 weeks ended September 29, 2024, compared to $46,857 for the 39 weeks ended October 1, 2023, an increase of $3,430, driven by higher Non-House Membership Revenues and growth in Other Revenues at Soho Home and from the opening of Scorpios Bodrum in the 39 weeks ended September 29, 2024 offset by the recognition of $3,000 in respect of a lease promote in our Rome property from our landlord in the 39 weeks ended October 1, 2023.
Other Contribution Margin was 20% for the 39 weeks ended September 29, 2024, in line with the 39 weeks ended October 1, 2023, with improvements in The Americas and United Kingdom segment being offset by lower margins in Europe/RoW following the opening of Scorpios Bodrum and the benefit of the Rome promote in 2023.
General and Administrative Expenses
|
|
For the 39 Weeks Ended |
|
|
Percent Change |
|
||||||||||
|
|
September 29, |
|
|
October 1, |
|
|
Actual |
|
|
Constant |
|
||||
|
|
(Dollar amounts in thousands) |
|
|
|
|
|
|
|
|||||||
|
|
(Unaudited) |
|
|||||||||||||
General and Administrative Expenses |
|
$ |
112,770 |
|
|
$ |
103,381 |
|
|
|
9 |
% |
|
|
6 |
% |
Percentage of total revenues |
|
|
13 |
% |
|
|
12 |
% |
|
|
|
|
|
|
||
62
General and Administrative Expenses were $112,770 for the 39 weeks ended September 29, 2024, compared with $103,381 for the 39 weeks ended October 1, 2023, an increase of $9,389, or 9%. The increase was driven considerably by the cost of headcount to support business expansion, including five new Soho Houses opened since the beginning of the fiscal year 2023.
In constant currency, General and Administrative Expenses had an increase of $6,227, or 6%.
Pre-opening Expenses
|
|
For the 39 Weeks Ended |
|
|
Percent Change |
|
||||||||||
|
|
September 29, |
|
|
October 1, |
|
|
Actual |
|
|
Constant |
|
||||
|
|
(Dollar amounts in thousands) |
|
|
|
|
|
|
|
|||||||
|
|
(Unaudited) |
|
|||||||||||||
Pre-opening expenses |
|
$ |
13,958 |
|
|
$ |
14,369 |
|
|
|
(3 |
)% |
|
|
(6 |
)% |
Percentage of total revenues |
|
|
2 |
% |
|
|
2 |
% |
|
|
|
|
|
|
||
Pre-opening expenses were $13,958 for the 39 weeks ended September 29, 2024. The decrease of $411 in comparison to $14,369 for the 39 weeks ended October 1, 2023, is driven by the timing of expenses incurred for the Houses and other sites opened in the first nine months of fiscal 2023 (Soho House Mexico City and Soho House Bangkok) and early fiscal 2024 (Soho House Portland) compared to those opened later in fiscal 2024 (Scorpios Bodrum, Soho House Sao Paulo, and Soho Mews House). In constant currency, Pre-opening expenses decreased by 850, or 6%.
Depreciation and Amortization
|
|
For the 39 Weeks Ended |
|
|
Percent Change |
|
||||||||||
|
|
September 29, |
|
|
October 1, |
|
|
Actual |
|
|
Constant |
|
||||
|
|
(Dollar amounts in thousands) |
|
|
|
|
|
|
|
|||||||
|
|
(Unaudited) |
|
|||||||||||||
Depreciation and amortization |
|
$ |
76,642 |
|
|
$ |
74,162 |
|
|
|
3 |
% |
|
|
0 |
% |
Percentage of total revenues |
|
|
9 |
% |
|
|
9 |
% |
|
|
|
|
|
|
||
Depreciation and amortization were $76,642 for the 39 weeks ended September 29, 2024, an increase of $2,480, or 3%, from the 39 weeks ended October 1, 2023.This increase was primarily driven by amortization of capitalized IT development costs, as well as depreciation associated with new or refurbished Soho Houses, this was offset by a reduction on Soho Works sites. In constant currency, depreciation and amortization expenses increased by $212.
Other Expenses
|
|
For the 39 Weeks Ended |
|
|
Percent Change |
|
||||||||||
|
|
September 29, |
|
|
October 1, |
|
|
Actual |
|
|
Constant |
|
||||
|
|
(Dollar amounts in thousands) |
|
|
|
|
|
|
|
|||||||
|
|
(Unaudited) |
|
|||||||||||||
Share-based compensation |
|
$ |
15,150 |
|
|
$ |
16,186 |
|
|
|
(6 |
)% |
|
|
(9 |
)% |
Percentage of total revenues |
|
|
2 |
% |
|
|
2 |
% |
|
|
|
|
|
|
||
Foreign exchange (gain) loss , net |
|
$ |
(28,937 |
) |
|
$ |
(3,899 |
) |
|
n/m |
|
|
n/m |
|
||
Percentage of total revenues |
|
|
(3 |
)% |
|
|
(0 |
)% |
|
|
|
|
|
|
||
Loss on impairment of long-lived assets |
|
$ |
14,068 |
|
|
|
0 |
% |
|
n/m |
|
|
n/m |
|
||
Percentage of total revenues |
|
|
2 |
% |
|
|
0 |
% |
|
|
|
|
|
|
||
Other, net |
|
$ |
13,738 |
|
|
$ |
1,625 |
|
|
n/m |
|
|
n/m |
|
||
Percentage of total revenues |
|
|
2 |
% |
|
|
0 |
% |
|
|
|
|
|
|
||
Share-based compensation expense decreased by $1,036 to $15,150 for the 39 weeks ended September 29, 2024, primarily reflecting a number of SARs granted prior to the IPO fully vesting and RSUs vesting in the 39 weeks ended October 1, 2023, partially offset by additional RSUs granted in the 39 weeks ended September 29, 2024.
63
Foreign exchange (gain) loss, net, which is unrealized and non-cash in nature, moved by $25,038 from a gain of $(3,899) to $(28,937) for the 39 weeks ended September 29, 2024, primarily driven by foreign exchange revaluation of our borrowings.
During the 39 weeks ended September 29, 2024, the Company recognized $14,068 of impairment losses on long-lived assets (comprised of $11 million in respect of Operating lease assets and $3 million of Property and equipment, net), of which $13 million is in respect of Soho Works North America.
Other expenses increased by $12,113 to $13,738 for the 39 weeks ended September 29, 2024, primarily due to $1,885 for one-time expenses related to shareholder activism, $2,424 of expenses incurred with respect to the evaluation of certain strategic transactions by our independent special committee and $6,137 incurred with respect to a strategic reorganization program of our operations and support teams. In addition, we recognized impairment losses on intangible assets related to the termination of two hotel management contracts of $4,710.
Interest Expense, Net
|
|
For the 39 Weeks Ended |
|
|
Percent Change |
|
||||||||||
|
|
September 29, |
|
|
October 1, |
|
|
Actual |
|
|
Constant |
|
||||
|
|
(Dollar amounts in thousands) |
|
|
|
|
|
|
|
|||||||
|
|
(Unaudited) |
|
|||||||||||||
Interest expense, net |
|
$ |
61,846 |
|
|
$ |
59,527 |
|
|
|
4 |
% |
|
|
1 |
% |
Percentage of total revenues |
|
|
7 |
% |
|
|
7 |
% |
|
|
|
|
|
|
||
Interest Expense, net was $61,846 for the 39 weeks ended September 29, 2024, an increase of $2,319, or 4%, to the 39 weeks ended October 1, 2023, driven by the higher interest rate and principal on the Soho Beach House Miami loan post refinancing and the higher principal amount on our Senior Secured Notes due to the compounding of this debt, offset by the loss on extinguishments of debt incurred following the refinancing of Soho Beach House Miami in May 2023. In constant currency, net interest decreased by $498.
Adjusted EBITDA
|
|
For the 39 Weeks Ended |
|
|
Percent Change |
|
||||||||||
|
|
September 29, |
|
|
October 1, |
|
|
Actual |
|
|
Constant |
|
||||
|
|
(Dollar amounts in thousands) |
|
|
|
|
|
|
|
|||||||
|
|
(Unaudited) |
|
|||||||||||||
Adjusted EBITDA |
|
$ |
99,612 |
|
|
$ |
85,642 |
|
|
|
16 |
% |
|
|
13 |
% |
Percentage of total revenues |
|
|
11 |
% |
|
|
10 |
% |
|
|
|
|
|
|
||
Adjusted EBITDA was $99,612 for the 39 weeks ended September 29, 2024, in comparison to $85,642 for the 39 weeks ended October 1, 2023, an increase of $13,970. The increase has been driven by higher membership revenues versus the comparative period, alongside higher Other Revenues, offset by an increase in General and Administrative and Operating expenses year-on-year. In constant currency, adjusted EBITDA increased by $11,351, an increase of 13%.
64
Non-GAAP Financial Measures
For the 13 weeks ended September 29, 2024 and October 1, 2023
A reconciliation of Net Loss to adjusted EBITDA is set forth below for the periods specified:
|
|
For the 13 Weeks Ended |
|
|
Percent Change |
|
||||||||||
|
|
September 29, |
|
|
October 1, |
|
|
Actuals |
|
|
Constant |
|
||||
|
|
(Unaudited, dollar amounts in thousands) |
|
|||||||||||||
Net income (loss) |
|
$ |
718 |
|
|
$ |
(48,433 |
) |
|
n/m |
|
|
n/m |
|
||
Depreciation and amortization |
|
|
26,017 |
|
|
|
24,503 |
|
|
|
6 |
% |
|
|
1 |
% |
Interest expense, net |
|
|
20,658 |
|
|
|
18,799 |
|
|
|
10 |
% |
|
|
5 |
% |
Income tax expense |
|
|
18,026 |
|
|
|
4,208 |
|
|
n/m |
|
|
n/m |
|
||
EBITDA |
|
|
65,419 |
|
|
|
(923 |
) |
|
n/m |
|
|
n/m |
|
||
(Gain) loss on sale of property and other, net |
|
|
236 |
|
|
|
(7 |
) |
|
n/m |
|
|
n/m |
|
||
Share of income of equity method investments |
|
|
(1,754 |
) |
|
|
(1,953 |
) |
|
|
10 |
% |
|
|
14 |
% |
Foreign exchange (gain) loss, net(2) |
|
|
(39,591 |
) |
|
|
30,698 |
|
|
n/m |
|
|
n/m |
|
||
Share of equity method investments adjusted EBITDA |
|
|
2,367 |
|
|
|
2,557 |
|
|
|
(7 |
)% |
|
|
(12 |
)% |
Share-based compensation expense |
|
|
3,513 |
|
|
|
4,683 |
|
|
|
(25 |
)% |
|
|
(28 |
)% |
Operational reorganization and severance expense(3) |
|
|
4,023 |
|
|
|
— |
|
|
n/m |
|
|
n/m |
|
||
Impairment of long-lived assets(4) |
|
|
14,068 |
|
|
|
— |
|
|
n/m |
|
|
n/m |
|
||
Adjusted EBITDA |
|
$ |
48,281 |
|
|
$ |
35,055 |
|
|
|
38 |
% |
|
|
31 |
% |
The computation of House-Level Contribution and Other Contribution is set forth below:
|
|
For the 13 Weeks Ended |
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
September 29, |
|
|
October 1, |
|
|
Change % |
|
|
October 1, 2023 |
|
|
Constant Currency |
|
|||||
|
|
Actuals |
|
|
|
|
|
|
|
|||||||||||
|
|
(Unaudited, dollar amounts in thousands) |
|
|||||||||||||||||
Operating income (loss) |
|
$ |
37,884 |
|
|
$ |
(27,386 |
) |
|
n/m |
|
|
$ |
(33,721 |
) |
|
n/m |
|
||
General and administrative |
|
|
39,672 |
|
|
|
35,564 |
|
|
|
12 |
% |
|
|
37,297 |
|
|
|
6 |
% |
Pre-opening expenses |
|
|
2,561 |
|
|
|
5,094 |
|
|
|
(50 |
)% |
|
|
5,342 |
|
|
|
(52 |
)% |
Depreciation and amortization |
|
|
26,017 |
|
|
|
24,503 |
|
|
|
6 |
% |
|
|
25,697 |
|
|
|
1 |
% |
Share-based compensation |
|
|
3,513 |
|
|
|
4,683 |
|
|
|
(25 |
)% |
|
|
4,911 |
|
|
|
(28 |
)% |
Foreign exchange (gain) loss, net |
|
|
(39,591 |
) |
|
|
30,698 |
|
|
n/m |
|
|
|
32,193 |
|
|
n/m |
|
||
Loss on impairment of long-lived assets |
|
|
14,068 |
|
|
|
— |
|
|
n/m |
|
|
|
— |
|
|
n/m |
|
||
Other, net |
|
|
3,775 |
|
|
|
617 |
|
|
n/m |
|
|
|
647 |
|
|
n/m |
|
||
Non-House membership revenues |
|
|
(8,427 |
) |
|
|
(8,084 |
) |
|
|
(4 |
)% |
|
|
(8,478 |
) |
|
|
1 |
% |
Other revenues |
|
|
(105,316 |
) |
|
|
(86,115 |
) |
|
|
(22 |
)% |
|
|
(89,567 |
) |
|
|
(18 |
)% |
Other operating expenses |
|
|
86,679 |
|
|
|
72,383 |
|
|
|
20 |
% |
|
|
75,909 |
|
|
|
14 |
% |
House-Level Contribution |
|
$ |
60,835 |
|
|
$ |
51,957 |
|
|
|
17 |
% |
|
$ |
50,230 |
|
|
|
21 |
% |
Operating income (loss) margin |
|
|
11 |
% |
|
|
(9 |
)% |
|
|
|
|
|
(9 |
)% |
|
|
|
||
House-Level Contribution Margin |
|
|
28 |
% |
|
|
26 |
% |
|
|
|
|
|
26 |
% |
|
|
|
||
65
|
|
For the 13 Weeks Ended |
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
September 29, |
|
|
October 1, |
|
|
Change % |
|
|
October 1, 2023 |
|
|
Constant Currency |
|
|||||
|
|
Actuals |
|
|
|
|
|
|
|
|||||||||||
|
|
(Unaudited, dollar amounts in thousands) |
|
|||||||||||||||||
Membership revenues |
|
$ |
107,394 |
|
|
$ |
92,049 |
|
|
|
17 |
% |
|
$ |
94,411 |
|
|
|
14 |
% |
Less: Non-House membership revenues |
|
|
(8,427 |
) |
|
|
(8,084 |
) |
|
|
(4 |
)% |
|
|
(8,478 |
) |
|
|
1 |
% |
House Membership revenues |
|
|
98,967 |
|
|
|
83,965 |
|
|
|
18 |
% |
|
|
85,933 |
|
|
|
15 |
% |
Add: In-House revenues |
|
|
120,658 |
|
|
|
115,223 |
|
|
|
5 |
% |
|
|
118,700 |
|
|
|
2 |
% |
Total House revenues |
|
|
219,625 |
|
|
|
199,188 |
|
|
|
10 |
% |
|
|
204,633 |
|
|
|
7 |
% |
Less: In-House operating expenses |
|
|
158,790 |
|
|
|
147,231 |
|
|
|
8 |
% |
|
|
154,403 |
|
|
|
3 |
% |
House-Level Contribution |
|
$ |
60,835 |
|
|
$ |
51,957 |
|
|
|
17 |
% |
|
$ |
50,230 |
|
|
|
21 |
% |
|
|
For the 13 Weeks Ended |
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
September 29, |
|
|
October 1, |
|
|
Change % |
|
|
October 1, 2023 |
|
|
Constant Currency |
|
|||||
|
|
Actuals |
|
|
|
|
|
|
|
|||||||||||
|
|
(Unaudited, dollar amounts in thousands) |
|
|||||||||||||||||
Operating income (loss) |
|
$ |
37,884 |
|
|
$ |
(27,386 |
) |
|
n/m |
|
|
$ |
(33,721 |
) |
|
n/m |
|
||
General and administrative |
|
|
39,672 |
|
|
|
35,564 |
|
|
|
12 |
% |
|
|
37,297 |
|
|
|
6 |
% |
Pre-opening expenses |
|
|
2,561 |
|
|
|
5,094 |
|
|
|
(50 |
)% |
|
|
5,342 |
|
|
|
(52 |
)% |
Depreciation and amortization |
|
|
26,017 |
|
|
|
24,503 |
|
|
|
6 |
% |
|
|
25,697 |
|
|
|
1 |
% |
Share-based compensation |
|
|
3,513 |
|
|
|
4,683 |
|
|
|
(25 |
)% |
|
|
4,911 |
|
|
|
(28 |
)% |
Foreign exchange loss, net |
|
|
(39,591 |
) |
|
|
30,698 |
|
|
n/m |
|
|
|
32,193 |
|
|
n/m |
|
||
Loss on impairment of long-lived assets |
|
|
14,068 |
|
|
|
— |
|
|
n/m |
|
|
|
— |
|
|
n/m |
|
||
Other, net |
|
|
3,775 |
|
|
|
617 |
|
|
n/m |
|
|
|
647 |
|
|
n/m |
|
||
House membership revenues |
|
|
(98,967 |
) |
|
|
(83,965 |
) |
|
|
18 |
% |
|
|
(85,933 |
) |
|
|
(15 |
)% |
In-House revenues |
|
|
(120,658 |
) |
|
|
(115,223 |
) |
|
|
(5 |
)% |
|
|
(118,700 |
) |
|
|
(2 |
)% |
In-House operating expenses |
|
|
158,790 |
|
|
|
147,231 |
|
|
|
8 |
% |
|
|
154,403 |
|
|
|
3 |
% |
Total Other Contribution |
|
$ |
27,064 |
|
|
$ |
21,816 |
|
|
|
24 |
% |
|
$ |
22,136 |
|
|
|
22 |
% |
Operating income (loss) margin |
|
|
11 |
% |
|
|
(9 |
)% |
|
|
|
|
|
(9 |
)% |
|
|
|
||
Other Contribution Margin |
|
|
24 |
% |
|
|
23 |
% |
|
|
|
|
|
23 |
% |
|
|
|
||
|
|
For the 13 Weeks Ended |
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
September 29, |
|
|
October 1, |
|
|
Change % |
|
|
October 1, 2023 |
|
|
Constant Currency |
|
|||||
|
|
Actuals |
|
|
|
|
|
|
|
|||||||||||
|
|
(Unaudited, dollar amounts in thousands) |
|
|||||||||||||||||
Other Contribution |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Non-House membership revenues |
|
$ |
8,427 |
|
|
$ |
8,084 |
|
|
|
4 |
% |
|
$ |
8,478 |
|
|
|
-1 |
% |
Add: other revenues |
|
|
105,316 |
|
|
|
86,115 |
|
|
|
22 |
% |
|
|
89,567 |
|
|
|
18 |
% |
Less: other operating expenses |
|
|
86,679 |
|
|
|
72,383 |
|
|
|
20 |
% |
|
|
75,909 |
|
|
|
14 |
% |
Other Contribution |
|
$ |
27,064 |
|
|
$ |
21,816 |
|
|
|
24 |
% |
|
$ |
22,136 |
|
|
|
22 |
% |
66
For the 39 weeks ended September 29, 2024 and October 1, 2023
A reconciliation of Net Loss to adjusted EBITDA is set forth below for the periods specified:
|
|
For the 39 Weeks Ended |
|
|
Percent Change |
|
||||||||||
|
|
September 29, |
|
|
October 1, |
|
|
Actuals |
|
|
Constant |
|
||||
|
|
(Unaudited, dollar amounts in thousands) |
|
|||||||||||||
Net income (loss) |
|
$ |
(71,345 |
) |
|
$ |
(67,978 |
) |
|
|
(5 |
)% |
|
|
(2 |
)% |
Depreciation and amortization |
|
|
76,642 |
|
|
|
74,162 |
|
|
|
3 |
% |
|
|
0 |
% |
Interest expense, net |
|
|
61,846 |
|
|
|
59,527 |
|
|
|
4 |
% |
|
|
1 |
% |
Income tax expense |
|
|
13,697 |
|
|
|
5,386 |
|
|
n/m |
|
|
n/m |
|
||
EBITDA |
|
|
80,840 |
|
|
|
71,097 |
|
|
|
14 |
% |
|
|
10 |
% |
Gain on sale of property and other, net |
|
|
62 |
|
|
|
(596 |
) |
|
n/m |
|
|
n/m |
|
||
Share of income of equity method investments |
|
|
(3,645 |
) |
|
|
(4,411 |
) |
|
|
17 |
% |
|
|
20 |
% |
Foreign exchange (gain) loss, net(2) |
|
|
(28,937 |
) |
|
|
(3,899 |
) |
|
n/m |
|
|
n/m |
|
||
Share of equity method investments adjusted EBITDA |
|
|
6,918 |
|
|
|
7,265 |
|
|
|
(5 |
)% |
|
|
(8 |
)% |
Share-based compensation expense |
|
|
15,150 |
|
|
|
16,186 |
|
|
|
(6 |
)% |
|
|
(9 |
)% |
Expenses related to shareholder activism(3) |
|
|
1,885 |
|
|
|
— |
|
|
n/m |
|
|
n/m |
|
||
Expenses related to the evaluation of certain strategic transactions(4) |
|
|
2,424 |
|
|
|
— |
|
|
n/m |
|
|
n/m |
|
||
Operational reorganization and severance expense(5) |
|
|
6,137 |
|
|
|
— |
|
|
n/m |
|
|
n/m |
|
||
Impairment of long-lived assets(6) |
|
|
14,068 |
|
|
|
— |
|
|
n/m |
|
|
n/m |
|
||
Impairment relating to intangible assets(7) |
|
|
4,710 |
|
|
|
— |
|
|
n/m |
|
|
n/m |
|
||
Adjusted EBITDA |
|
$ |
99,612 |
|
|
$ |
85,642 |
|
|
|
16 |
% |
|
|
13 |
% |
The computation of House-Level Contribution and Other Contribution is set forth below:
67
|
|
For the 39 Weeks Ended |
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
September 29, |
|
|
October 1, |
|
|
Change % |
|
|
October 1, 2023 |
|
|
Constant Currency |
|
|||||
|
|
Actuals |
|
|
|
|
|
|
|
|||||||||||
|
|
(Unaudited, dollar amounts in thousands) |
|
|||||||||||||||||
Operating income (loss) |
|
$ |
615 |
|
|
$ |
(8,072 |
) |
|
n/m |
|
|
$ |
(18,183 |
) |
|
n/m |
|
||
General and administrative |
|
|
112,770 |
|
|
|
103,381 |
|
|
|
9 |
% |
|
|
106,543 |
|
|
|
6 |
% |
Pre-opening expenses |
|
|
13,958 |
|
|
|
14,369 |
|
|
|
(3 |
)% |
|
|
14,808 |
|
|
|
(6 |
)% |
Depreciation and amortization |
|
|
76,642 |
|
|
|
74,162 |
|
|
|
3 |
% |
|
|
76,430 |
|
|
|
0 |
% |
Share-based compensation |
|
|
15,150 |
|
|
|
16,186 |
|
|
|
(6 |
)% |
|
|
16,681 |
|
|
|
(9 |
)% |
Foreign exchange (gain) loss, net |
|
|
(28,937 |
) |
|
|
(3,899 |
) |
|
n/m |
|
|
|
(4,018 |
) |
|
n/m |
|
||
Loss on impairment of long-lived assets |
|
|
14,068 |
|
|
|
— |
|
|
n/m |
|
|
|
— |
|
|
n/m |
|
||
Other, net |
|
|
13,738 |
|
|
|
1,625 |
|
|
n/m |
|
|
|
1,675 |
|
|
n/m |
|
||
Non-House membership revenues |
|
|
(24,946 |
) |
|
|
(23,371 |
) |
|
|
(7 |
)% |
|
|
(24,086 |
) |
|
|
(4 |
)% |
Other revenues |
|
|
(231,356 |
) |
|
|
(216,225 |
) |
|
|
(7 |
)% |
|
|
(221,277 |
) |
|
|
(5 |
)% |
Other operating expenses |
|
|
206,015 |
|
|
|
192,739 |
|
|
|
7 |
% |
|
|
198,634 |
|
|
|
4 |
% |
House-Level Contribution |
|
$ |
167,717 |
|
|
$ |
150,895 |
|
|
|
11 |
% |
|
$ |
147,207 |
|
|
|
14 |
% |
Operating income (loss) margin |
|
|
0 |
% |
|
|
(1 |
)% |
|
|
|
|
|
(1 |
)% |
|
|
|
||
House-Level Contribution Margin |
|
|
26 |
% |
|
|
25 |
% |
|
|
|
|
|
25 |
% |
|
|
|
||
|
|
For the 39 Weeks Ended |
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
September 29, |
|
|
October 1, |
|
|
Change % |
|
|
October 1, 2023 |
|
|
Constant Currency |
|
|||||
|
|
Actuals |
|
|
|
|
|
|
|
|||||||||||
|
|
(Unaudited, dollar amounts in thousands) |
|
|||||||||||||||||
Membership revenues |
|
$ |
308,690 |
|
|
$ |
262,062 |
|
|
|
18 |
% |
|
$ |
266,231 |
|
|
|
16 |
% |
Less: Non-House membership revenues |
|
|
(24,946 |
) |
|
|
(23,371 |
) |
|
|
(7 |
)% |
|
|
(24,086 |
) |
|
|
(4 |
)% |
House Membership revenues |
|
|
283,744 |
|
|
|
238,691 |
|
|
|
19 |
% |
|
|
242,145 |
|
|
|
17 |
% |
Add: In-House revenues |
|
|
358,213 |
|
|
|
356,862 |
|
|
|
0 |
% |
|
|
363,319 |
|
|
|
(1 |
)% |
Total House revenues |
|
|
641,957 |
|
|
|
595,553 |
|
|
|
8 |
% |
|
|
605,464 |
|
|
|
6 |
% |
Less: In-House operating expenses |
|
|
474,240 |
|
|
|
444,658 |
|
|
|
7 |
% |
|
|
458,257 |
|
|
|
3 |
% |
House-Level Contribution |
|
$ |
167,717 |
|
|
$ |
150,895 |
|
|
|
11 |
% |
|
$ |
147,207 |
|
|
|
14 |
% |
|
|
For the 39 Weeks Ended |
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
September 29, |
|
|
October 1, |
|
|
Change % |
|
|
October 1, 2023 |
|
|
Constant Currency |
|
|||||
|
|
Actuals |
|
|
|
|
|
|
|
|||||||||||
|
|
(Unaudited, dollar amounts in thousands) |
|
|||||||||||||||||
Operating income (loss) |
|
$ |
615 |
|
|
$ |
(8,072 |
) |
|
n/m |
|
|
$ |
(18,183 |
) |
|
n/m |
|
||
General and administrative |
|
|
112,770 |
|
|
|
103,381 |
|
|
|
9 |
% |
|
|
106,543 |
|
|
|
6 |
% |
Pre-opening expenses |
|
|
13,958 |
|
|
|
14,369 |
|
|
|
(3 |
)% |
|
|
14,808 |
|
|
|
(6 |
)% |
Depreciation and amortization |
|
|
76,642 |
|
|
|
74,162 |
|
|
|
3 |
% |
|
|
76,430 |
|
|
|
0 |
% |
Share-based compensation |
|
|
15,150 |
|
|
|
16,186 |
|
|
|
(6 |
)% |
|
|
16,681 |
|
|
|
(9 |
)% |
Foreign exchange loss, net |
|
|
(28,937 |
) |
|
|
(3,899 |
) |
|
n/m |
|
|
|
(4,018 |
) |
|
n/m |
|
||
Loss on impairment of long-lived assets |
|
|
14,068 |
|
|
|
— |
|
|
n/m |
|
|
|
— |
|
|
n/m |
|
||
Other, net |
|
|
13,738 |
|
|
|
1,625 |
|
|
n/m |
|
|
|
1,675 |
|
|
n/m |
|
||
House membership revenues |
|
|
(283,744 |
) |
|
|
(238,691 |
) |
|
|
(19 |
)% |
|
|
(242,145 |
) |
|
|
(17 |
)% |
In-House revenues |
|
|
(358,213 |
) |
|
|
(356,862 |
) |
|
|
(0 |
)% |
|
|
(363,319 |
) |
|
|
1 |
% |
In-House operating expenses |
|
|
474,240 |
|
|
|
444,658 |
|
|
|
7 |
% |
|
|
458,257 |
|
|
|
3 |
% |
Total Other Contribution |
|
$ |
50,287 |
|
|
$ |
46,857 |
|
|
|
7 |
% |
|
$ |
46,729 |
|
|
|
8 |
% |
Operating income (loss) margin |
|
|
0 |
% |
|
|
(1 |
)% |
|
|
|
|
|
(1 |
)% |
|
|
|
||
Other Contribution Margin |
|
|
20 |
% |
|
|
20 |
% |
|
|
|
|
|
20 |
% |
|
|
|
||
68
|
|
For the 39 Weeks Ended |
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
September 29, |
|
|
October 1, |
|
|
Change % |
|
|
October 1, 2023 |
|
|
Constant Currency |
|
|||||
|
|
Actuals |
|
|
|
|
|
|
|
|||||||||||
|
|
(Unaudited, dollar amounts in thousands) |
|
|||||||||||||||||
Other Contribution |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Non-House membership revenues |
|
$ |
24,946 |
|
|
$ |
23,371 |
|
|
|
7 |
% |
|
$ |
24,086 |
|
|
|
4 |
% |
Add: other revenues |
|
|
231,356 |
|
|
|
216,225 |
|
|
|
7 |
% |
|
|
221,277 |
|
|
|
5 |
% |
Less: other operating expenses |
|
|
206,015 |
|
|
|
192,739 |
|
|
|
7 |
% |
|
|
198,634 |
|
|
|
4 |
% |
Other Contribution |
|
$ |
50,287 |
|
|
$ |
46,857 |
|
|
|
7 |
% |
|
$ |
46,729 |
|
|
|
8 |
% |
Liquidity and Capital Resources
Liquidity is the ability to generate sufficient cash flows to meet the cash requirements of our business operations. Our principal sources of liquidity are operating cash flows, holdings of cash and cash equivalents and availability under our Revolving Credit Facility. As of September 29, 2024, we maintained a cash and cash equivalents balance of $143 million and a restricted cash balance of $4 million.
Our primary requirements for liquidity are to fund our working capital needs, operating and finance lease obligations, capital expenditures and general corporate needs. Our ongoing capital expenditures are principally related to opening new Houses, refurbishing and maintaining the existing House portfolio as well as investments in our corporate technology infrastructure to support our digital strategy and technology infrastructure.
In a given year, our primary cash inflows and outflows relate to the following:
On February 9, 2024, the Company’s board and a relevant sub-committee authorized and approved a new stock repurchase program for up to $50 million of the currently outstanding shares of the Company’s Class A common stock. During the 13 weeks and 39 weeks ended September 29, 2024, the Company repurchased a total of 2,269,130 shares of Class A common stock for $13 million and 3,160,175 shares for $17 million, respectively, including commissions, under the new program. The repurchased shares are held as treasury shares by the Company.
We believe our existing cash and marketable securities balances will be sufficient to fund our operating and finance lease obligations, capital expenditures and working capital needs for at least the next 12 months and the foreseeable future.
Cash Flows and Working Capital
The following table provides a summary of cash flow data for the periods presented:
|
|
For the 39 Weeks Ended |
|
|||||
|
|
September 29, |
|
|
October 1, |
|
||
|
|
(Unaudited, dollar amounts in thousands) |
|
|||||
Net cash generated by (used in) |
|
|
|
|
|
|
||
Net cash provided by (used in) operating activities |
|
$ |
62,794 |
|
|
$ |
28,690 |
|
Net cash provided by (used in) investing activities |
|
|
(57,375 |
) |
|
|
(62,104 |
) |
Net cash provided by (used in) financing activities |
|
|
(21,503 |
) |
|
|
5,531 |
|
Effect of exchange rates on cash and cash equivalents |
|
|
1,599 |
|
|
|
(97 |
) |
Net (decrease) increase in cash and cash equivalents |
|
$ |
(14,485 |
) |
|
$ |
(27,980 |
) |
Net Cash Used in Operating Activities
The primary cash inflows from operating activities include Membership Revenues, In-House Revenues and Other Revenues, such as the sale of retail products. The primary cash outflows from operating activities include general operating expenses and interest payments.
For the 39 weeks ended September 29, 2024, we had a $62,794 inflow of cash from operating activities, which includes a net loss of $71,345, depreciation and amortization of $76,642, and a favorable net working capital change of $34,549.
For the 39 weeks ended October 1, 2023, we had a $28,690 inflow of cash from operating activities, which includes a net loss of $67,978, depreciation and amortization of $74,162, and an unfavorable net working capital change of $16,422.
69
Net Cash Used in Investing Activities
The primary cash inflows from investing activities include the cash proceeds from the sale of assets. The primary cash outflows from investing activities include the purchase of property and equipment and intangibles.
For the 39 weeks ended September 29, 2024, we had a $57,375 outflow of cash from investing activities, primarily due to purchases of property and equipment of $55,833 and purchases of intangible assets of $12,237 offset by a repayment from equity method investees of $10,695.
For the 39 weeks ended October 1, 2023, we had a $62,104 outflow of cash from investing activities, primarily due to purchases of property and equipment of $49,631 and purchases of intangible assets of $13,989.
Net Cash Provided by Financing Activities
The primary cash inflows from financing activities include proceeds from borrowings. The primary cash outflows from financing activities include principal payments on borrowings and purchase of treasury stock.
For the 39 weeks ended September 29, 2024, we had a $21,503 outflow of cash from financing activities, primarily due to the purchase of treasury stock of $17,396 and distributions to noncontrolling interest of $3,697.
For the 39 weeks ended October 1, 2023, we had a $5,531 inflow of cash from financing activities, primarily due to the repayment of borrowings of $117,350 and proceeds from borrowings of $140,000.
Cash Requirements from Contractual and Other Obligations
As of September 29, 2024, there have been no material changes outside the ordinary course of business to our contractual obligations from those disclosed in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” as described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023.
Critical Accounting Estimates and Judgments
Management’s discussion and analysis of the financial condition and results of operations is based on the financial statements, which have been prepared in accordance with US GAAP. The preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported revenues and expenses incurred during the reporting periods. The estimates are based on historical experience and on various other factors that are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. There have been no significant changes in our critical accounting policies and estimates as compared to the critical accounting policies and estimates disclosed in the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included our Annual Report on Form 10-K for the fiscal year ended December 31, 2023.
Emerging Growth Company Status
We are an ‘emerging growth company,’ as defined in the Jumpstart Our Business Startups Act of 2012, or the JOBS Act, and are eligible to take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not ‘emerging growth companies,’ including, but not limited to: presenting only two years of audited financial statements in addition to any required unaudited interim financial statements with correspondingly reduced “Management’s Discussion and Analysis of Financial Condition and Results of Operations” not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002, or Sarbanes-Oxley; having reduced disclosure obligations regarding executive compensation in our periodic reports and proxy or information statements; being exempt from the requirements to hold a non-binding advisory vote on executive compensation or seek stockholder approval of any golden parachute payments not previously approved; and not being required to adopt certain accounting standards until those standards would otherwise apply to private companies. As a result, our financial statements may not be comparable to companies that comply with the new or revised accounting pronouncements as of public company effective dates.
70
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Our exposure to market risk has not materially changed from what was previously disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023.
Foreign Exchange Risk
We principally operate in the UK and The Americas, although we have significant operations in Europe. Therefore, we are exposed to reporting foreign exchange risk in Pound sterling and Euros.
We have not, to date, used any material financial instruments to mitigate our foreign exchange risk. The directors and management will keep this situation under review. As income is received and suppliers paid in respect of the UK and European operation in Pound sterling or Euros, respectively, this acts as a natural hedge against foreign exchange risk.
If the USD had strengthened/weakened by 10% versus the GBP, revenue would have been approximately $6 million lower and approximately $7 million higher, respectively, and Net Loss would have been approximately less than $1 million higher and approximately less than $1 million lower, respectively, for the 13 weeks ended September 29, 2024.
If the Euro had strengthened/weakened by 10% versus the GBP, revenue would have been approximately $2 million higher and approximately $2 million lower, respectively, and Net Loss would have been approximately less than $1 million lower and approximately less than $1 million higher, respectively, for the 13 weeks ended September 29, 2024.
If the USD had strengthened/weakened by 10% versus the GBP, revenue would have been approximately $47 million lower and approximately $52 million higher, respectively, and Net Loss would have been approximately $3 million lower and approximately $3 million higher, respectively, for the 39 weeks ended September 29, 2024.
If the Euro had strengthened/weakened by 10% versus the GBP, revenue would have been approximately $13 million higher and approximately $11 million lower, respectively, and Net Loss would have been approximately less than $1 million lower and approximately less than $1 million higher, respectively, for the 39 weeks ended September 29, 2024.
Concentration of Credit Risk
Credit risk is the risk of loss from amounts owed by financial counter-parties. Credit risk can occur at multiple levels; as a result of broad economic conditions, challenges within specific sectors of the economy, or from issues affecting individual companies. Financial instruments that potentially subject us to credit risk consist of cash equivalents and accounts receivable.
We maintain cash and cash equivalents with major financial institutions. Our cash and cash equivalents consist of bank deposits held with banks, and money market funds that, at times, exceed federally or locally insured limits. We limit our credit risk by dealing with customers, counterparties and institutions that are considered to be of high credit quality and by performing periodic evaluations of accounts receivable and investments and of the relative credit standing of our customers, counterparties and financial institutions, as applicable.
Liquidity Risk
We seek to manage our financial risks to ensure that sufficient liquidity is available to meet our foreseeable needs. We believe we have significant flexibility to control our capital expenditure commitments in new House developments through different investment formats. As of September 29, 2024, we had $143 million in cash and cash equivalents on the balance sheet, $4 million of restricted cash and £71 million ($95 million) undrawn on the Revolving Credit Facility (subject to complying with our covenants) to meet our funding needs.
Cash Flow and Fair Value Interest Rate Risk
We have historically financed our operations through a mixture of bank borrowings and bond notes which are generally fixed, and expect to finance our operations through operating cash flows and availability under our Revolving Credit Facility. We seek to manage exposure to adverse interest rate changes through our normal operating and financing activities.
Inflation Risk
Inflation has an impact on food, utilities, labor, rent, and other costs which materially impact operations. Severe increases in inflation could have an adverse impact on our business, financial condition and results of operations. If several of the various costs in our business experience inflation at the same time, we may not be able to adjust prices to sufficiently offset the effect of the various cost increases without negatively impacting consumer demand.
Commodity Price Risks
We are exposed to commodity price risks specially foodstuffs, natural gas and oil. Many of the ingredients we use to prepare our food and beverages are commodities or are affected by the price of other commodities. Factors that affect the price of commodities are generally outside of our control and include foreign currency exchange rates, foreign and domestic supply and demand, inflation, weather, the geopolitical situation, and seasonality.
71
Item 4. Controls and Procedures.
Evaluation of Disclosure Controls and Procedures
Management concluded that as of September 29, 2024 our disclosure controls and procedures were not effective at the reasonable assurance level, due to material weaknesses in our internal control over financial reporting, to provide reasonable assurance that information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in SEC rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.
As described in Note 17, Revision of Prior Period Financial Statements, included in this Form 10-Q, Management identified misstatements in its previously issued consolidated financial statements as of and for the 52-week period ended December 31, 2023 (“Fiscal 2023”) and January 1, 2023 (“Fiscal 2022”); the unaudited condensed consolidated financial statements as of and for the 13-week periods ended March 31, 2024 (“Q1 2024”)and April 2, 2023 (“Q1 2023”); the unaudited condensed consolidated financial statements as of and for the 13-week and 26-week periods ended June 30,2024 (“Q2 2024”) and July 2, 2023 (“Q2 2023”); and the unaudited condensed consolidated financial statements as of and for the 13-week and 39-week periods ended October 1, 2023 (“Q3 2023”). The Company assessed the materiality of the errors, including the presentation on prior period consolidated financial statements, on a qualitative and quantitative basis in accordance with SEC Staff Accounting Bulletins (“SAB”) No. 99, Materiality, and No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements codified in Accounting Standards Codification (“ASC”) Topic 250, Accounting Changes and Error Corrections. The Company determined the impacts of these misstatements were not material to the financial statements for all prior periods identified above. For comparative purposes, the Company has made corrections to the condensed consolidated financial statements and applicable notes for the prior periods presented in this Form 10-Q. Further, the Company included details of the corrections on all impacted prior periods (as listed above) and financial statement line items in Note 17, Revision of Prior Period Financial Statements, in this Form 10-Q
As disclosed in our Annual Report in Form 10-K for the fiscal year ended December 31, 2023, based on management’s assessment of the effectiveness of our internal controls over financial reporting, management concluded that our internal controls over financial reporting were not effective as of December 31, 2023, because of the identification of two material weaknesses identified in our internal control over financial reporting. The material weaknesses related to (i) our lack of a sufficient number of personnel with an appropriate level of knowledge and experience with the application of US generally accepted accounting principles ("GAAP") and with our financial reporting requirements; and (ii) the fact that policies and procedures with respect to the review, supervision and monitoring of our accounting and reporting functions, including IT general controls, were either not designed and in place, or not operating effectively. These material weaknesses resulted in adjustments to our financial statements and included lease accounting, income tax accounting, impairment of long-lived assets accounting, related party transactions and disclosures and balance sheet reclassifications during the course of the audit process.
Changes in Internal Control over Financial Reporting
There were no changes in our internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) during the 39 weeks ended September 29, 2024 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
Limitations on the Effectiveness of Disclosure Controls and Procedures
In designing and evaluating our disclosure controls and procedures and internal control over financial reporting, our management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable, not absolute, assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures and internal control over financial reporting must reflect the fact that there are resource constraints and our management is required to apply judgment in evaluating the benefits of possible controls and procedures relative to their costs. The design of any disclosure controls and procedures and internal control over financial reporting also are based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.
72
PART II—OTHER INFORMATION
Item 1. Legal Proceedings.
From time to time we are subject to legal proceedings and claims that arise in the ordinary course of business. At present, we are not a party to any litigation other than litigation in the ordinary course of business. We do not expect that the ultimate outcome of any of the currently ongoing legal proceedings, individually or collectively, will have a significant adverse effect on our business, financial condition, results of operations or cash flows.
However, the results of litigation and arbitration are inherently unpredictable and the possibility exists that the ultimate resolution of matters to which we are or could become subject could result in a material adverse effect on our business, financial condition, results of operations and cash flows.
Item 1A. Risk Factors.
You should carefully consider the risk factors discussed in section “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, which could materially affect our business, financial position, or future results of operations. There have been no material changes to the risk factors described in our Annual Report on Form 10-K, except as described below. The risks described in our Annual Report Form 10-K are not the only risks that we face. Additional risks and uncertainties not precisely known to us, or that we currently deem to be immaterial, may also arise and materially impact our business. If any of these risks occur, our business, results of operations and financial condition could be materially and adversely affected and the trading price of our common stock could decline.
We identified material weaknesses in connection with our internal control over financial reporting. Although we are taking steps to remediate these material weaknesses, there is no assurance we will be successful in doing so in a timely manner, or at all, and we may identify other material weaknesses.
In connection with the audits of our consolidated financial statements for fiscal 2023, fiscal 2022 and fiscal 2021, our management and independent registered public accounting firm identified material weaknesses in our internal control over financial reporting. The material weaknesses related to (i) our lack of a sufficient number of personnel with an appropriate level of knowledge and experience with the application of US generally accepted accounting principles ("GAAP") and with our financial reporting requirements; and (ii) the fact that policies and procedures with respect to the review, supervision and monitoring of our accounting and reporting functions, including IT general controls, were either not designed and in place, or not operating effectively. These material weaknesses resulted in adjustments to our financial statements and included lease accounting, income tax accounting, impairment of long-lived assets accounting, related party transactions and disclosures and balance sheet reclassifications during the course of the audit process.
In connection with ongoing remediation efforts including the process of our replacement of our legacy financial system with a new ERP system, management identified misstatements and confirmed previously uncorrected immaterial misstatements in its previously issued financial statements for fiscal 2023, fiscal 2022, the interim periods within these fiscal years, Q1 2024 and Q2 2024 as a result of manual processes and the material weaknesses over our accounting and internal controls described above.
Remediation Efforts to Address the Previously Disclosed Material Weakness
The Company has devoted, and will continue to devote, significant time and resources to complete its remediation of the material weaknesses. The following components of the ongoing remediation plan, among others, are:
Further, the Company is focused on continuing to bolster its Transformation and Finance teams including by hiring a Chief Transformation Officer (November 2024) to lead the ERP system implementation and a number of personnel with a higher level of knowledge and experience including application of US GAAP, internal audit and SOX compliance.
The Company considers that the actions described above are comprehensive and will remediate the material weaknesses and strengthen the Company’s internal control over financial reporting. Given the Company is still in the process of recruiting experienced accounting staff and implementing the new ERP system, the Company believes that additional time will be beneficial to demonstrate that the new personnel, in conjunction with the new system, have the ability to consistently perform their responsibilities to ensure that the material weaknesses have been fully remediated. Therefore, the Company has concluded that these material weaknesses will not be considered fully remediated until the remediation actions, including those above, have operated effectively for a sufficient period of time and have been sufficiently tested.
As a public company, we are required to maintain internal control over financial reporting and to report any material weaknesses in such internal control. In addition, we are required to furnish a report by our management on the effectiveness of our internal control over financial reporting, pursuant to Section 404 of the Sarbanes-Oxley Act. Additional control deficiencies may in the future be identified by our management or independent registered public accounting firm, and such control deficiencies may also represent one or more material weaknesses in addition to those previously identified. We are currently in the process of remediating these material weaknesses and we are taking steps that we believe will address their underlying causes. We have enlisted the help of external consultants to provide assistance in the areas of internal controls and financial reporting in the short term, and are evaluating the longer-term resource needs of our accounting staff, including GAAP expertise. These remediation measures may be time-consuming and costly, and might place
73
significant demands on our financial, accounting and operational resources. In addition, there is no assurance that we will be successful in hiring any necessary finance and accounting personnel in a timely manner, or at all.
Assessing our procedures to improve our internal control over financial reporting is an ongoing process. We can provide no assurance that our remediation efforts described herein will be successful and that we will not have material weaknesses in the future. Any material weaknesses we identify could result in an adverse reaction in the financial markets due to a loss of confidence in the reliability of our consolidated financial statements as well as subject us to increased regulatory inquiry and shareholder litigation.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
(a) Sales of Unregistered Securities
None.
(b) Use of Proceeds from Public Offering of Common Stock
None.
(c) Issuer Purchases of Equity Securities
The following table sets forth information regarding our purchases of shares of our common stock during the 13 weeks ended September 29, 2024:
Period |
Total Number of Shares Purchased |
|
Average Price Paid per Share(1) |
|
Total Number of Shares Purchased as Part of Publicly Announced Program(2) |
|
Maximum Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program(2) (in millions) |
|
||||
July 1, 2024 through July 28, 2024 |
|
957,604 |
|
$ |
6.20 |
|
|
1,848,649 |
|
$ |
40 |
|
July 29, 2024 through August 25, 2024 |
|
1,043,413 |
|
|
5.29 |
|
|
2,892,062 |
|
|
34 |
|
August 26, 2024 through September 29, 2024 |
|
268,113 |
|
|
6.18 |
|
|
3,160,175 |
|
|
33 |
|
Total |
|
2,269,130 |
|
$ |
5.59 |
|
|
|
|
|
||
Item 3. Defaults Upon Senior Securities.
None.
Item 4. Mine Safety Disclosures.
Not applicable.
Item 5. Other Information.
74
Item 6. Exhibits.
Exhibit |
|
Description |
31.1* |
|
|
31.2* |
|
|
32.1* |
|
|
32.2* |
|
|
101.INS |
|
Inline XBRL Instance Document-the instance document does not appear in the Interactive Data File as its XBRL tags are embedded within the Inline XBRL document. |
101.SCH |
|
Inline XBRL Taxonomy Extension Schema With Embedded Linkbase Documents. |
104 |
|
Cover page formatted as Inline XBRL and contained in Exhibit 101. |
* Filed herewith.
75
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
|
|
|
|
|
|
|
|
|
|
|
Soho House & Co Inc. |
||
|
|
|
|
|||
Date: December 20, 2024 |
|
|
|
By: |
|
/s/ Andrew Carnie |
|
|
|
|
|
|
Andrew Carnie |
|
|
|
|
|
|
Chief Executive Officer |
|
|
|
|
|||
Date: December 20, 2024 |
|
|
|
By: |
|
/s/ Thomas Allen |
|
|
|
|
|
|
Thomas Allen |
|
|
|
|
|
|
Chief Financial Officer |
76
Exhibit 31.1
CERTIFICATION PURSUANT TO
RULES 13a-14(a) AND 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, Andrew Carnie, certify that:
|
1. |
I have reviewed this Quarterly Report on Form 10-Q of Soho House & Co Inc.; |
|
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
|
3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
|
4. |
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
|
(a) |
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
|
(b) |
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
|
(c) |
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
|
(d) |
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
|
5. |
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
|
(a) |
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
|
(b) |
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: December 20, 2024 |
|
|
|
By: |
|
/s/ Andrew Carnie |
|
|
|
|
|
|
Andrew Carnie |
|
|
|
|
|
|
Chief Executive Officer |
|
|
|
|
|
|
(Principal Executive Officer) |
Exhibit 31.2
CERTIFICATION PURSUANT TO
RULES 13a-14(a) AND 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, Thomas Allen, certify that:
|
1. |
I have reviewed this Quarterly Report on Form 10-Q of Soho House & Co Inc.; |
|
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
|
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
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The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
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designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
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designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
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evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
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disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
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5. |
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
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all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
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any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: December 20, 2024 |
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By: |
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/s/ Thomas Allen |
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Thomas Allen |
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Chief Financial Officer |
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(Principal Financial Officer) |
Exhibit 32.1
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of Soho House & Co Inc. (the “Company”) on Form 10-Q for the 13-week period ending September 29, 2024, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned certifies, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that, to his knowledge:
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The Report fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934, as amended; and |
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2. |
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
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December 20, 2024 |
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By: |
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/s/ Andrew Carnie |
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Andrew Carnie |
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Chief Executive Officer |
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(Principal Executive Officer) |
The foregoing certification is being furnished to the Securities and Exchange Commission as an exhibit to the Report and shall not be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and it is not to be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.
Exhibit 32.2
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of Soho House & Co Inc. (the “Company”) on Form 10-Q for the 13-week period ending September 29, 2024, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned certifies, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that, to his knowledge:
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1. |
The Report fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934, as amended; and |
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2. |
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
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December 20, 2024 |
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By: |
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/s/ Thomas Allen |
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Thomas Allen |
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Chief Financial Officer |
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(Principal Financial Officer) |
The foregoing certification is being furnished to the Securities and Exchange Commission as an exhibit to the Report and shall not be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and it is not to be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares |
Sep. 29, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Treasury stock, shares | 13,627,295 | 10,467,120 |
| Common Class A [Member] | ||
| Common stock, Par value | $ 0.01 | $ 0.01 |
| Common stock, Shares authorized | 1,000,000,000 | 1,000,000,000 |
| Common stock, Shares issued | 66,186,815 | 64,208,851 |
| Common stock, Shares outstanding | 52,559,520 | 53,741,731 |
| Common Class B [Member] | ||
| Common stock, Par value | $ 0.01 | $ 0.01 |
| Common stock, Shares authorized | 500,000,000 | 500,000,000 |
| Common stock, Shares issued | 141,500,385 | 141,500,385 |
| Common stock, Shares outstanding | 141,500,385 | 141,500,385 |
Condensed Consolidated Statements of Operations (Unaudited) (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 29, 2024 |
Oct. 01, 2023 |
Sep. 29, 2024 |
Oct. 01, 2023 |
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| In House Operating Expenses [Member] | ||||
| Operating cost and expenses | $ 14,635 | $ 15,502 | $ 44,474 | $ 42,682 |
| Other Operating Expenses [Member] | ||||
| Operating cost and expenses | 6,943 | 6,960 | 19,734 | 20,927 |
| General And Administrative Expenses [Member] | ||||
| Operating cost and expenses | $ 4,439 | $ 2,041 | $ 12,434 | $ 10,553 |
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||
|---|---|---|---|---|---|---|---|---|
Sep. 29, 2024 |
Jun. 30, 2024 |
Mar. 31, 2024 |
Oct. 01, 2023 |
Jul. 02, 2023 |
Apr. 02, 2023 |
Sep. 29, 2024 |
Oct. 01, 2023 |
|
| Statement of Comprehensive Income [Abstract] | ||||||||
| Net income (loss) | $ 718 | $ (30,205) | $ (41,858) | $ (48,433) | $ (2,176) | $ (17,369) | $ (71,345) | $ (67,978) |
| Other comprehensive income (loss) | ||||||||
| Foreign currency translation adjustment | (29,785) | 19,727 | (29,425) | (3,183) | ||||
| Comprehensive loss | (29,067) | (28,706) | (100,770) | (71,161) | ||||
| (Income) loss attributable to noncontrolling interest | (543) | (912) | 62 | (1,205) | ||||
| Foreign currency translation adjustment attributable to noncontrolling interest | (396) | 302 | (349) | 128 | ||||
| Total comprehensive income (loss) attributable to Soho House & Co Inc. | $ (30,006) | $ (29,316) | $ (101,057) | $ (72,238) | ||||
Condensed Consolidated Statements of Changes in Shareholders' Deficit (Unaudited) - USD ($) $ in Thousands |
Total |
Common Stock [Member] |
Additional Paid-in Capital [Member] |
Accumulated Deficit [Member] |
Accumulated Other Comprehensive Income (Loss) [Member] |
Treasury Stock [Member] |
Total Shareholders' Equity Attributable to Soho House & Co Inc. [Member] |
Noncontrolling Interest [Member] |
|---|---|---|---|---|---|---|---|---|
| Ending Balance at Jan. 01, 2023 | $ (18,883) | $ 2,037 | $ 1,213,086 | $ (1,245,989) | $ 54,923 | $ (50,000) | $ (25,943) | $ 7,060 |
| Net income (loss) | (17,369) | (17,305) | (17,305) | (64) | ||||
| Distributions to noncontrolling interests | (390) | (390) | ||||||
| Non-cash share-based compensation (Note 11) | 5,677 | 4 | 5,673 | 5,677 | ||||
| Net change in cumulative translation adjustment | (7,155) | (7,147) | (7,147) | (8) | ||||
| Ending Balance at Apr. 02, 2023 | (38,120) | 2,041 | 1,218,759 | (1,263,294) | 47,776 | (50,000) | (44,718) | 6,598 |
| Beginning Balance at Jan. 01, 2023 | (18,883) | 2,037 | 1,213,086 | (1,245,989) | 54,923 | (50,000) | (25,943) | 7,060 |
| Ending Balance at Jul. 02, 2023 | (50,670) | 2,044 | 1,224,137 | (1,265,827) | 31,839 | (50,000) | (57,807) | 7,137 |
| Beginning Balance at Jan. 01, 2023 | (18,883) | 2,037 | 1,213,086 | (1,245,989) | 54,923 | (50,000) | (25,943) | 7,060 |
| Net income (loss) | (67,978) | |||||||
| Ending Balance at Oct. 01, 2023 | (87,280) | 2,052 | 1,228,225 | (1,315,172) | 51,868 | (62,000) | (95,027) | 7,747 |
| Beginning Balance at Jan. 01, 2023 | (18,883) | 2,037 | 1,213,086 | (1,245,989) | 54,923 | (50,000) | (25,943) | 7,060 |
| Ending Balance at Dec. 31, 2023 | (167,153) | 2,057 | 1,231,941 | (1,376,532) | 29,641 | (62,000) | (174,893) | 7,740 |
| Beginning Balance at Apr. 02, 2023 | (38,120) | 2,041 | 1,218,759 | (1,263,294) | 47,776 | (50,000) | (44,718) | 6,598 |
| Net income (loss) | (2,176) | (2,533) | (2,533) | 357 | ||||
| Non-cash share-based compensation (Note 11) | 5,381 | 3 | 5,378 | 5,381 | ||||
| Net change in cumulative translation adjustment | (15,755) | (15,937) | (15,937) | 182 | ||||
| Ending Balance at Jul. 02, 2023 | (50,670) | 2,044 | 1,224,137 | (1,265,827) | 31,839 | (50,000) | (57,807) | 7,137 |
| Net income (loss) | (48,433) | (49,345) | (49,345) | 912 | ||||
| Shares repurchased (Note 12) | (12,000) | (12,000) | (12,000) | |||||
| Non-cash share-based compensation (Note 11) | 4,096 | 8 | 4,088 | 4,096 | ||||
| Net change in cumulative translation adjustment | 19,727 | 20,029 | 20,029 | (302) | ||||
| Ending Balance at Oct. 01, 2023 | (87,280) | 2,052 | 1,228,225 | (1,315,172) | 51,868 | (62,000) | (95,027) | 7,747 |
| Beginning Balance at Dec. 31, 2023 | (167,153) | 2,057 | 1,231,941 | (1,376,532) | 29,641 | (62,000) | (174,893) | 7,740 |
| Net income (loss) | (41,858) | (41,559) | (41,559) | (299) | ||||
| Non-cash share-based compensation (Note 11) | 7,336 | 11 | 7,325 | 7,336 | ||||
| Net change in cumulative translation adjustment | 4,378 | 4,435 | 4,435 | (57) | ||||
| Ending Balance at Mar. 31, 2024 | (197,297) | 2,068 | 1,239,266 | (1,418,091) | 34,076 | (62,000) | (204,681) | 7,384 |
| Beginning Balance at Dec. 31, 2023 | (167,153) | 2,057 | 1,231,941 | (1,376,532) | 29,641 | (62,000) | (174,893) | 7,740 |
| Ending Balance at Jun. 30, 2024 | (234,210) | 2,071 | 1,242,735 | (1,447,990) | 30,048 | (66,708) | (239,844) | 5,634 |
| Beginning Balance at Dec. 31, 2023 | (167,153) | 2,057 | 1,231,941 | (1,376,532) | 29,641 | (62,000) | (174,893) | 7,740 |
| Net income (loss) | (71,345) | |||||||
| Ending Balance at Sep. 29, 2024 | (275,093) | 2,077 | 1,245,844 | (1,447,815) | (133) | (79,396) | (279,423) | 4,330 |
| Beginning Balance at Mar. 31, 2024 | (197,297) | 2,068 | 1,239,266 | (1,418,091) | 34,076 | (62,000) | (204,681) | 7,384 |
| Net income (loss) | (30,205) | (29,899) | (29,899) | (306) | ||||
| Distributions to noncontrolling interests | (1,454) | (1,454) | ||||||
| Shares repurchased (Note 12) | (4,708) | (4,708) | (4,708) | |||||
| Non-cash share-based compensation (Note 11) | 3,472 | 3 | 3,469 | 3,472 | ||||
| Net change in cumulative translation adjustment | (4,018) | (4,028) | (4,028) | 10 | ||||
| Ending Balance at Jun. 30, 2024 | (234,210) | 2,071 | 1,242,735 | (1,447,990) | 30,048 | (66,708) | (239,844) | 5,634 |
| Net income (loss) | 718 | 175 | 175 | 543 | ||||
| Distributions to noncontrolling interests | (2,243) | (2,243) | ||||||
| Shares repurchased (Note 12) | (12,688) | (12,688) | (12,688) | |||||
| Non-cash share-based compensation (Note 11) | 3,115 | 6 | 3,109 | 3,115 | ||||
| Net change in cumulative translation adjustment | (29,785) | (30,181) | (30,181) | 396 | ||||
| Ending Balance at Sep. 29, 2024 | $ (275,093) | $ 2,077 | $ 1,245,844 | $ (1,447,815) | $ (133) | $ (79,396) | $ (279,423) | $ 4,330 |
Pay vs Performance Disclosure - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 29, 2024 |
Oct. 01, 2023 |
Sep. 29, 2024 |
Oct. 01, 2023 |
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| Pay vs Performance Disclosure | ||||
| Net Income (Loss) | $ 175 | $ (49,345) | $ (71,283) | $ (69,183) |
Insider Trading Arrangements |
3 Months Ended |
|---|---|
Sep. 29, 2024 | |
| Trading Arrangements, by Individual | |
| Rule 10b5-1 Arrangement Adopted | false |
| Non-Rule 10b5-1 Arrangement Adopted | false |
| Rule 10b5-1 Arrangement Terminated | false |
| Non-Rule 10b5-1 Arrangement Terminated | false |
Nature of the Business |
9 Months Ended |
|---|---|
Sep. 29, 2024 | |
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
| Nature of the Business | 1. Nature of the Business
Soho House & Co Inc. is a global membership platform of physical and digital spaces that connects a vibrant, diverse group of members from across the world. Our members engage with us through our global portfolio of 45 Soho Houses, 8 Soho Works Clubs, The Ned hotel sites, The LINE and Saguaro hotels, Scorpios Beach Clubs, Soho Home and our digital channels.
The consolidated entity presented is referred to herein as “SHCO”, “we”, “us”, “our”, or the “Company”, as the context requires and unless otherwise noted. |
Summary of Significant Accounting Policies |
9 Months Ended |
|---|---|
Sep. 29, 2024 | |
| Accounting Policies [Abstract] | |
| Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation The consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for reporting interim information on Form 10-Q. The preparation of the financial statements in conformity with US GAAP requires the use of estimates, judgments and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenues and expenses during the periods presented. The Company's significant estimates relate to the valuation of financial instruments, equity method investments, the measurement of goodwill and intangible assets, contingent liabilities, income taxes, leases, and long-lived assets. Although the estimates have been prepared using management's best judgment and management believes that the estimates used are reasonable, actual results could differ from those estimates and such differences could be material. We operate on a fiscal year calendar consisting of a 52-or 53-week period ending on the last Sunday in December or the first Sunday in January of the next calendar year. In a 52-week fiscal year, each quarter contains 13 weeks of operations; in a 53-week fiscal year, each of the first, second and third quarters includes 13 weeks of operations and the fourth quarter includes 14 weeks of operations. Certain information and footnote disclosures normally included in financial statements prepared in accordance with US GAAP have been omitted in accordance with the rules and regulations of the SEC. The year-end condensed consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by US GAAP. The unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes thereto, included in the Company’s Annual Report on Form 10-K as of and for the fiscal year ended December 31, 2023. The results of operations for the 13- and 39-week periods ended September 29, 2024 and October 1, 2023 are not necessarily indicative of the operating results for the full fiscal year or any future periods.
Going Concern
The accompanying unaudited condensed consolidated financial statements of the Company have been prepared assuming the Company will continue as a going concern. The going concern basis of presentation assumes that we will continue in operation for at least a period of 12 months after the date these financial statements are issued, and contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.
We have experienced net losses and significant cash outflows over the past years as we develop our Houses. During the 13 weeks and 39 weeks ended September 29, 2024, the Company reported a consolidated net income of $1 million and a consolidated net loss of $71 million, respectively. During the 39 weeks ended September 29, 2024, the Company had net cash provided by operations of $63 million. As of September 29, 2024, the Company had an accumulated deficit balance of $1,448 million, cash and cash equivalents of $143 million, and a restricted cash balance of $4 million.
In assessing the going concern basis of preparation of the unaudited condensed consolidated financial statements for the 13 weeks and 39 weeks ended September 29, 2024, we have taken into consideration detailed cash flow forecasts for the Company, the Company’s forecast compliance with bank covenants, and the timing of debt commitments within 12 months of the approval of these financial statements, and the continued availability of committed and accessible working capital to the Company.
We have considered current global economic and political uncertainties, specifically including inflationary pressures on consumables purchased and wages, and the Company has factored these in when it undertook an assessment of the cash flow forecasts covering a period of at least 12 months from the date these financial statements are issued. Cash flow forecasts have been prepared based on a range of scenarios including, but not limited to, no further debt or equity funding, repayment of existing short-term debt, macro-economic dynamics, cost reductions, both limited and extensive, and a combination of these different scenarios.
Based on the above, the consolidated financial statements have been presented on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. Accordingly, we continue to adopt the going concern basis in preparing the unaudited condensed consolidated financial statements for the 13 weeks and 39 weeks ended September 29, 2024.
Comprehensive Loss The entire balance of accumulated other comprehensive loss, net of income taxes, is related to the cumulative translation adjustment in each of the periods presented. The changes in the balance of accumulated other comprehensive income loss, net of income tax, are attributable solely to the net change in the cumulative translation adjustment in each of the periods presented. Impairment of Other Long-Lived Assets The Company recognized $14 million of impairment losses on long-lived assets (comprised of $11 million in respect of Operating lease assets and $3 million of Property and equipment, net) during the 13 weeks and 39 weeks ended September 29, 2024. No impairment losses were recorded for the 13 weeks and 39 weeks ended October 1, 2023. In the 13 weeks ended September 29, 2024, the Company identified a triggering impairment event due to the continued challenges in the cost of real estate and the decreased performance of various Soho Works locations in the USA. The Company performed an impairment analysis on four Soho Work sites in the United States. As a result of the third quarter of 2024 analysis, a $14 million non-cash impairment charge was recorded for these Soho Works sites. The high property costs associated with these locations being the primary factor of the asset impairment. The Company also identified a triggering impairment event in one of their UK restaurant sites. The non-cash impairment charge for the UK restaurant site was less than $1 million. The non-cash impairment charge is included in impairments of assets in the consolidated statement of operations for the 13 weeks ended September 29, 2024. The primary assumptions, which requires significant level of judgement, that affects the undiscounted cash flows determination is management's estimate of future revenues, operating margins, economic conditions and changes in the operating environment. The forecasts used in the impairment assessments was developed by management based on projected revenues derived largely from forecasted member attendance. Management also makes estimates on the expected costs and the expected operating lease costs. Changes in these assumptions could have a significant impact on the recoverability of the assets and may result in additional impairment charges. Changes in the membership, operating margins and economic growth and the contracted operating rental costs beyond what has already been assumed in the assessments could cause management to revise the forecast and assumptions. Unfavorable revisions to these assumptions or estimates could possibly result in further impairment of some or all of the assets.
Recently Adopted Accounting Standards In June 2020, the FASB issued ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity. The Company adopted ASU 2020-06 effective January 1, 2024 on a prospective basis. The adoption of ASU 2020-06 did not have a material effect on the Company’s consolidated financial statements and related disclosures. In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. The ASU requires entities to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC 606, Revenue from Contracts with Customers. The Company adopted ASU 2024-02 effective January 1, 2024 on a prospective basis. The adoption of ASU 2024-02 did not have a material effect on the Company’s consolidated financial statements and related disclosures as no business combination transactions have taken place since the Company adopted ASU 2024-02. In August 2023, the FASB issues ASU 2023-02, Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method. The ASU permits reporting entities to elect to account for their tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. The Company adopted ASU 2023-02 in Q1 2024. The adoption of ASU 2023-02 did not have a material effect on the Company’s consolidated financial statements and related disclosures.
Future Accounting Standards
In October 2023, the FASB issued ASU No 2023-06, “Disclosure Agreements – Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative” (“ASU 2023-06”). ASU 2023-06 will align the disclosure and presentation requirements in the FASB Accounting Standards Codification with the SEC’s regulations. The amendments in ASU 2023-06 will be applied prospectively and are effective when the SEC removes the related requirements from Regulations S-X or S-K. Any amendments the SEC does not remove by June 30, 2027 will not be effective. The Company’s is currently evaluating the impact of this ASU on its consolidated financial statements and related disclosures.
In November 2023, the FASB issued ASU No 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”). ASU 2023-07 expands disclosures about a public entity’s reportable segments and requires more enhanced information about a reportable segment’s expenses, interim segment profit or loss, and how a public entity’s chief operating decision maker uses reported segment profit or loss information in assessing segment performance and allocating resources. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. ASU 2023-07 should be applied retrospectively to all prior periods presented in the financial statements. The Company’s is currently evaluating the impact of this ASU on its consolidated financial statements and related disclosures.
In December 2023, the FASB issued ASU No 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”). ASU 2023-09 expands disclosures in the rate reconciliation and requires disclosure of income taxes paid by jurisdiction. ASU 2023-09 is effective for fiscal years beginning after December 15, 2025 or the interim period in which the Company loses emerging growth company status. Early adoption is permitted. ASU 2023-09 should be applied prospectively; however, retrospective application is permitted. The Company’s is currently evaluating the impact of this ASU on its consolidated financial statements and related disclosures.
In March 2024, the FASB issued ASU No 2024-01, "Compensation - Stock Compensation (Topic 718): Scope application for profits interest and similar awards" ("ASU 2024-01"). This update adds an illustrative example to demonstrate how an entity should apply the scope guidance to determine whether profits interest and similar awards ("profits interest awards") should be accounted for in accordance with Topic 718. ASU 2024-01 is effective for fiscal years beginning after December 15, 2025 or the interim period in which the Company loses emerging growth company status. Early adoption is permitted. ASU 2024-01 should be applied retrospectively to all prior periods presented in the financial statements or prospectively. The Company’s is currently evaluating the impact of this ASU on its consolidated financial statements and related disclosures.
In March 2024, the FASB issued ASU No 2024-02, “Codification Improvements - Amendments to Remove References to the Concepts Statements” (“ASU 2024-02”). ASU 2024-02 removes references to various Concepts Statements. In most instances, the references are extraneous and not required to understand or apply the guidance. ASU 2024-02 is effective for fiscal years beginning after December 15, 2025 or the interim period in which the Company loses emerging growth company status. ASU 2024-02 can be applied prospectively or retrospectively. The Company’s is currently evaluating the impact of this ASU on its consolidated financial statements and related disclosures.
In November 2024, the FASB issued ASU No 2024-03, “Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures” ("ASU 2024-03"). ASU 2024-03 requires disclosure in the notes to the financial statements of specified information about certain costs and expenses. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026 and for interim periods within fiscal years beginning after December 15, 2027. ASU 2024-03 should be applied either prospectively to financial statements issued for reporting periods after the effective date of this ASU or retrospectively to any or all prior periods presented in the financial statements. The Company is currently evaluating the impact of ASU 2024-03 on its disclosures.
Revision of Prior Period Financial Statements
On November 6, 2024, the Company announced that it is replacing legacy systems with a new modernized finance Enterprise Resource Planning (“ERP”) system to support its long-term success, controls, and strategic growth initiatives. In preparation for the systems upgrade, the Company has undertaken a number of initiatives including continuing to work with external consultants to support the review and assist in strengthening its internal controls and processes including reconciliations and completing the implementation of a new ERP system for its retail business in August 2024. Further, the Company is focused on continuing to bolster its Transformation and Finance teams including by hiring a Chief Transformation Officer (November 2024) to lead the ERP system implementation and hiring a number of personnel with a higher level of knowledge and experience with the application of US GAAP, internal audit and SOX compliance. During the 13-weeks period ended September 29, 2024, through the performance of these activities, management identified misstatements, as well as confirmed the financial statement impacts of previously identified uncorrected immaterial misstatements, in its previously issued consolidated financial statements as of and for the 52-week period ended December 31, 2023 (“Fiscal 2023”) and January 1, 2023 (“Fiscal 2022”); the unaudited condensed consolidated financial statements as of and for the 13-week periods ended March 31, 2024 (“Q1 2024”) and April 2, 2023 (“Q1 2023”); the unaudited condensed consolidated financial statements as of and for the 13-week and 26-week periods ended June 30, 2024 (“Q2 2024”) and July 2, 2023 (“Q2 2023”); and the unaudited condensed consolidated financial statements as of and for the 13-week and 39-week periods ended October 1, 2023 (“Q3 2023”). The Company believes the misstatements identified through the performance of the activities above is related to manual processes and the existing material weaknesses in our control over financial reporting as described in the most recently filed Form 10-K for the fiscal year ended December 31, 2023. The Company assessed the materiality of the errors, both individually and in aggregate, including as out of period corrections in the current period as well as corrections to impacted prior period consolidated financial statements, on a qualitative and quantitative basis in accordance with SEC Staff Accounting Bulletins (“SAB”) No. 99, Materiality, and No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements, codified in Accounting Standards Codification (“ASC”) Topic 250, Accounting Changes and Error Corrections. While correction of these adjustments as out of period corrections would be material in aggregate to the current period, the Company determined the impacts of these misstatements were not material to the financial statements for all prior periods identified and has accordingly revised the comparative amounts presented. For comparative purposes, the Company has made corrections to the consolidated financial statements and applicable notes for the prior periods presented in this Form 10-Q. Refer to Note 17, Revision of Prior Period Financial Statements, for additional information on the misstatements identified and quantification of the impact of correcting the misstatements. |
Consolidated Variable Interest Entities |
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| Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Consolidated Variable Interest Entities | 3. Consolidated Variable Interest Entities The Company determined that it is the primary beneficiary of the following material variable interest entities (“VIEs”):
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Equity Method Investments |
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| Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity Method Investments | 4. Equity Method Investments The Company maintains a portfolio of equity method investments owned through noncontrolling interests in investments with one or more partners. During the 39 weeks ended September 29, 2024, the Company received a payment of capital of $11 million from its Mimea XXI, S.L.U. joint venture which operates Soho House Barcelona (Spain). There have been no changes in the Company’s equity method investment ownership interests in existing entities and no new equity method investments since December 31, 2023. Under applicable guidance for VIEs, the Company determined that its investments in the following entities are VIEs:
Toronto Joint Venture On March 28, 2012, the Company and two unrelated investors (“Toronto Partners”) formed Soho House Toronto to own and operate a House in Toronto, Canada. The Company is responsible for managing the development and operations of the property with key operating decisions requiring joint approval with the Toronto Partners. 56-60 Redchurch Street, London Joint Venture On July 6, 2015, the Company and a related party investor (“Raycliff Partner”) formed Raycliff Red LLP (“Club Row Rooms”) to develop and operate a hotel at 58-60 Redchurch Street intended to provide additional members’ accommodation to the nearby Shoreditch House in London. This was later extended to include 56 Redchurch Street under the same terms. The Company is responsible for managing the operations of the property and the Raycliff Partner is responsible for managing the building. Summarized Financial Information The following table presents summarized financial information for all unconsolidated equity method investees. The Company’s maximum exposure to losses related to its equity method investments is limited to its ownership interests.
(1) The net income (loss) shown above relates entirely to continuing operations. |
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Leases |
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| Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leases | 5. Leases The Company has entered into various lease agreements for its Houses, hotels, restaurants, spas and other properties across The Americas, Europe, and Asia, which includes 48 equipment leases. The Company’s material leases have reasonably assured lease terms ranging from 1 year to 30 years for operating leases and 50 years for finance leases. Certain operating leases provide the Company with multiple renewal options that generally range from 5 years to 10 years, with rent payments on renewal based on a predetermined annual increase or market rates at the time of exercise of the renewal. The Company has 3 material finance leases with 25 years renewal options, with rent payments on renewal based on upward changes in inflation rates. As of September 29, 2024, the Company recognized right-of-use assets and lease liabilities for 168 operating leases and 3 finance leases. When recognizing right-of-use assets and lease liabilities, the Company includes certain renewal options where the Company is reasonably assured to exercise the renewal option. The maturity of the Company’s operating and finance lease liabilities as of September 29, 2024 is as follows:
Certain lease agreements include variable lease payments that, in the future, will vary based on changes in the local inflation rates, market rate rents, or business revenues of the leased premises. Straight-line rent expense recognized as part of In-House operating expenses for operating leases was $43 million and $37 million for the 13 weeks ended September 29, 2024 and October 1, 2023, respectively, and $120 million and $110 million for the 39 weeks ended September 29, 2024 and October 1, 2023, respectively. For the 13 weeks ended September 29, 2024 and October 1, 2023, the Company recognized amortization expense related to the right-of-use asset for finance leases of $1 million and less than $1 million, respectively, and interest expense related to finance leases of $1 million and $1 million, respectively. For the 39 weeks ended September 29, 2024 and October 1, 2023, the Company recognized amortization expense related to the right-of-use asset for finance leases of $1 million and $1 million, respectively, and interest expense related to finance leases of $5 million and $4 million, respectively. The Company recognized less than $1 million of variable lease payments for finance leases for the 13 weeks ended September 29, 2024 and October 1, 2023 and $1 million of variable lease payments for finance leases for the 39 weeks ended September 29, 2024 and October 1, 2023. New Houses typically have a maturation profile that commences sometime after the lease commencement date used in the determination of the lease accounting in accordance with Topic 842. The unaudited condensed consolidated balance sheets set out the operating lease liabilities split between sites trading less than one year and sites trading more than one year. “Sites trading less than one year” and “sites trading more than one year” reference sites that have been open (as measured from the date the site first accepted a paying guest) for a period less than one year from the balance sheet date and those that have been open for a period longer than one year from the balance sheet date. The Company currently leases five properties from related parties as described in Note 16, Related Party Transactions. The five properties, as of September 29, 2024 and eight properties, as of December 31, 2023 have a combined right-of-use asset of $98 million and $194 million reported within “Operating lease assets” in the unaudited condensed consolidated balance sheets as of September 29, 2024 and December 31, 2023, respectively. The related combined short term lease liability amounts to $3 million and $5 million reported within “Current portion of operating lease liabilities - sites trading more than one year” as of September 29, 2024 and December 31, 2023. The related combined long term lease liability amounts to $108 million and $226 million reported in “Operating lease liabilities, net of current portion - sites trading more than one year” as of September 29, 2024 and December 31, 2023, respectively. The straight-line rent recorded within “In-house operating expenses” associated with the five, as September 29, 2024 , and eight, as of December 31, 2023, related party leases amounts to $3 million and $6 million for the 13 weeks ended September 29, 2024 and October 1, 2023, respectively, and $14 million and $18 million for the 39 weeks ended September 29, 2024 and October 1, 2023, respectively. The following information represents supplemental disclosure for the statement of cash flows related to operating and finance leases:
The following summarizes additional information related to operating and finance leases:
As of September 29, 2024, the Company has entered into 11 operating lease agreements that are signed but have not commenced. Of these, 9 relate to Houses, hotels, restaurants, and other properties that are in various stages of construction by the landlord. Refer to Note 16, Related Party Transactions for further information on the 2 lease agreements not commenced with related parties. The Company will determine the classification as of the lease commencement date, but currently expects these under construction leases to be operating leases. Soho House Design (“SHD”) is involved to varying degrees in the design of these leased properties under construction. For certain of these leases, the SHD team is acting as the construction manager on behalf of the landlord. The Company does not control the underlying assets under construction. Pending significant completion of all landlord improvements and final execution of the related lease, the Company expects these leases to commence in fiscal years ending 2024, 2025, 2026 and 2028. The Company estimates the total undiscounted lease payments for the leases commencing in fiscal years ended 2024, 2025, 2026 and 2028 will be $27 million, $195 million, $452 million and $390 million, respectively, with weighted-average expected lease terms of 20 years, 23 years, 25 years and 15 years for 2024, 2025, 2026 and 2028, respectively. The following summarizes the Company’s estimated future undiscounted lease payments, net of lease incentives, for current leases signed but not commenced, including properties where the SHD team is acting as the construction manager as of September 29, 2024:
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Revenue Recognition |
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| Revenue Recognition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue Recognition | 6. Revenue Recognition Disaggregated revenue disclosures for the 13 weeks and 39 weeks ended September 29, 2024 and October 1, 2023 are included in Note 15, Segments. Revenue from membership fees, legacy one-time registration fees, House Introduction Credits, design & build-out contracts and exclusivity & incentive fee contracts are the primary arrangements for which revenue is recognized over time. The following table includes estimated revenues expected to be recognized in the future related to performance obligations that were unsatisfied (or partially unsatisfied) at the end of the reporting period ending September 29, 2024:
All consideration from contracts with customers is included in the amounts presented above. The following table provides information about contract receivables, contract assets and contract liabilities from contracts with customers:
Contract receivables consist solely of Accounts receivable, net which is comprised of amounts due from customers and partners including amounts owed from sites operated under management contracts, amounts billed under design & build-out contracts and amounts due from retail wholesale partners. Contract assets consist of accrued unbilled income related to design & build-out contracts and are recognized in prepaid expenses and other assets on the unaudited condensed consolidated balance sheets. Contract liabilities include deferred membership revenue, hotel deposits (which are presented in accrued liabilities on the unaudited condensed consolidated balance sheets), and gift vouchers. Revenue recognized that was included in the contract liabilities balance as of the beginning of the period was $28 million and $23 million during the 13 weeks ended September 29, 2024 and October 1, 2023, respectively, and $85 million and $69 million during the 39 weeks ended September 29, 2024 and October 1, 2023, respectively. The Company recognized revenue relating to transactions with related parties totaling $5 million and $7 million recorded within “Other revenues” in the unaudited condensed consolidated statements of operations during the 13 weeks ended September 29, 2024 and October 1, 2023, respectively, and $15 million and $16 million during the 39 weeks ended September 29, 2024 and October 1, 2023, respectively. The Company recognized a receivable related to these transactions with related parties amounting to $28 million and $26 million recorded within "Accounts receivable, net" in the unaudited condensed consolidated balance sheets as of September 29, 2024 and December 31, 2023. Refer to Note 16, Related Party Transactions for further information. |
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Inventories, Prepaid Expenses and Other Current Assets |
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| Prepaid Expense and Other Assets, Current [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Inventories, Prepaid Expenses and Other Current Assets | 7. Inventories, Prepaid Expenses and Other Current Assets Inventories consist of raw materials, service stock and supplies (primarily food and beverage) and finished goods (primarily for sale in our Retail business) which are externally sourced. Raw materials and service stock and supplies totaled $24 million and $27 million as of September 29, 2024 and December 31, 2023, respectively. Finished goods totaled $39 million and $31 million as of September 29, 2024 and December 31, 2023, respectively.
The Company recognized accrued revenue relating to transactions with related parties amounting to less than $1 million and $2 million recorded within "Prepaid expenses and other current assets" in the unaudited condensed consolidated balance sheets as of September 29, 2024 and December 31, 2023. Refer to Note 16, Related Party Transactions for further information.
The table below presents the components of prepaid expenses and other current assets.
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Accrued Liabilities |
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| Accrued Liabilities | 8. Accrued Liabilities The table below presents the components of accrued liabilities.
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Debt |
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| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt | 9. Debt Debt balances, net of debt issuance costs, are as follows:
Property mortgage loans, net of debt issuance costs, are as follows:
The weighted-average interest rate on fixed rate borrowings was 8% as of September 29, 2024 and 8% as of December 31, 2023. There were no outstanding floating rate borrowings as of September 29, 2024 or December 31, 2023. Debt The descriptions below show the financial instrument amounts in the currency of denomination with USD equivalent in parentheses, where applicable, translated using the exchange rates in effect at the time of the respective transaction. On November 10, 2022, Soho House Bond Limited, a wholly-owned subsidiary of the Company entered into the Third Amended and Restated Revolving Facility Agreement (the "Third Amendment") which further amends and restates the Revolving Credit Facility, originally entered into by the Company on December 5, 2019 (the original and amended facility refer to as the “Revolving Credit Facility”). The Third Amendment amends the Revolving Credit Facility to extend the maturity date from January 25, 2024 to July 25, 2026. In addition, the Third Amendment provides that from March 2023 we are required to maintain certain leverage covenants (as defined in the Revolving Credit Facility) which are applicable when 40% or more of the facility is drawn. As of September 29, 2024, the facility remains undrawn with £71 million ($95 million) available to draw under this facility and £4 million ($6 million) utilized as a letter of guarantee in respect of one of the Company’s lease agreements. The facility is secured on a fixed and floating charge basis over certain assets of the Company. The Company incurred interest expense of less than $1 million and less than $1 million in respect of the Revolving Credit Facility during the 13 weeks ended September 29, 2024 and October 1, 2023, respectively, and $1 million and $1 million during the 39 weeks ended September 29, 2024 and October 1, 2023, respectively. In 2017, Soho Works Limited entered into a term loan facility agreement. The SWL loan bears interest at 7% and matures, following the extensions described below, at the earliest of: (a) September 29, 2025; (b) the date of disposal of the whole or substantial part of the Soho Works Limited; (c) the date of sale by the shareholders of the entire issued share capital of Soho Works Limited to a third party; (d) the date of the admission of Soho Works Limited to any recognized investment exchange or multi-lateral trading facility; and (e) any later date that the lenders may determine in their sole discretion. The carrying amount of the term loan was £22 million ($29 million) and £22 million ($28 million) as of September 29, 2024 and December 31, 2023, respectively. The Company incurred interest expense of $1 million and $1 million on this facility during the 13 weeks ended September 29, 2024 and October 1, 2023, respectively, and $2 million and $2 million on this facility during the 39 weeks ended September 29, 2024 and October 1, 2023, respectively. In March 2024, this loan was subsequently extended for a further 12 months. The Company has determined a current classification of this loan is appropriate as it best reflects the substance of the agreement with the lenders given that the loan extension period is short-term in nature (12 months). On March 31, 2021, Soho House Bond Limited issued pursuant to a Notes Purchase Agreement senior secured notes, which were subscribed for by certain funds managed, sponsored or advised by Goldman Sachs & Co. LLC or its affiliates, in aggregate amounts equal to $295 million, €62 million ($73 million) and £53 million ($73 million) (the “Initial Notes”). The Notes Purchase Agreement included an option to issue, and a commitment on the part of the purchasers to subscribe for an aggregate amount of up to $100 million which were issued for the full amount on March 9, 2022 (the “Additional Notes” and, together with the Initial Notes, the “Senior Secured Notes”). The Senior Secured Notes mature on March 31, 2027 and bear interest at a fixed rate equal to a cash margin of 2.0192% per annum for the Initial Notes or 2.125% per annum for any Additional Notes, plus a payment-in-kind (capitalized) margin of 6.1572% per annum for the Initial Notes or 6.375% per annum for any Additional Notes. The Senior Secured Notes issued pursuant to the Notes Purchase Agreement may be redeemed and prepaid for cash, in whole or in part, at any time in accordance with the terms thereof, subject to payment of redemption fees. The Senior Secured Notes are guaranteed and secured on substantially the same basis as our Revolving Credit Facility. The Company incurred interest expense of $14 million and $13 million during the 13 weeks ended September 29, 2024 and October 1, 2023, respectively, and $41 million and $38 million during the 39 weeks ended September 29, 2024 and October 1, 2023, respectively. The other loans consist of the following:
Property Mortgage Loans In March 2014, the Company completed a freehold property acquisition of the Soho Beach House Miami Property. In May 2023, the Company refinanced the existing term loan of $55 million, interest at 5.34%, and mezzanine loan of $62 million, interest at 7.25% with a new $140 million loan agreement with JP Morgan Chase Bank, National Association and Citi Real Estate Funding Inc. This loan is secured with a recorded and insured first priority mortgage on Soho Beach House Miami Property as well as first priority security interests in all collateral related to the property. The new term loan matures in June 2033 and bears interest at 6.99%. The Company incurred interest expense of $2 million and $7 million on the new term loan during the 13 weeks and 39 weeks ended September 29, 2024. The Company incurred interest expense of $2 million and $2 million on these property mortgage loans during the 13 weeks ended September 29, 2024 and October 1, 2023, respectively, and $7 million and $6 million during the 39 weeks ended September 29, 2024 and October 1, 2023, respectively. Future Principal Payments The following table presents future principal payments for the Company’s debt and property mortgage loans as of September 29, 2024:
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Fair Value Measurements |
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| Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value Measurements | 10. Fair Value Measurements
Recurring and Non-recurring Fair Value Measurements There were no assets or liabilities measured at fair value on a recurring or non-recurring basis as of September 29, 2024 or December 31, 2023. Fair Value of Financial Instruments The Company believes the carrying values of its financial instruments related to current assets and liabilities approximate fair value due to short-term maturities. The Company has estimated the fair value of the Senior Secured Notes and the property mortgage loans as of September 29, 2024 and December 31, 2023 using a discounted cash flow analysis. The fair value of the other non-current debt is estimated as of September 29, 2024 and December 31, 2023 using a discounted cash flow analysis, except for the Dean Street Loan and the Copenhagen Loan where fair value is estimated to be equal to the current carrying value of each instrument as of September 29, 2024 based on a comparison of each instrument's contractual terms to current market terms. The Company does not believe that the use of different market inputs would have resulted in a materially different fair value of debt as of September 29, 2024 and December 31, 2023. The following table presents the estimated fair values (all of which are Level 3 fair value measurements) of the Company’s debt instruments with maturity dates in 2025 and thereafter:
The carrying values of the Company’s other non-current liabilities and non-current assets approximate their fair values. |
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Share-Based Compensation |
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| Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Share-Based Compensation | 11. Share-Based Compensation Equity and incentive plans The Company operates two equity and incentive plans for the benefit of its employees and directors. In August 2020, the Company established the 2020 Equity and Incentive Plan (the “2020 Plan”) under which SHHL Share Appreciation Rights (“SARs”) and SHHL Growth Shares were issued to certain employees. In July 2021, the Company established its 2021 Equity and Incentive Plan (the “2021 Plan”). The 2021 Plan allows for grants of non-qualified stock options, SARs, Restricted Stock Units ("RSUs") and Performance Stock Units ("PSUs"). The PSUs generally vest (i) upon the completion of a minimum service period and (ii) the Company's achievement of certain performance goals established at grant. There were 12,107,333 shares initially available for all awards under the 2021 Plan and the shares available is permitted to increase annually on the first day of each calendar year, beginning with the calendar year ended December 31, 2022, subject to approval by the board of directors (the "board"). As of September 29, 2024, there were 2,276,725 shares available for future awards. The Company granted 904,916 new RSUs and 630,158 new PSUs under the 2021 Plan during the 39 weeks ended September 29, 2024. Modifications of awards made under the plans In March 2024, the Company modified the exercise price for certain outstanding SARs to be $6.05 per share. As a result, the Company accounted for the modification as a Type I modification, resulting in $0.2 million of incremental fair value, which was recorded immediately as the awards were fully vested. The assumptions used in valuing SARs modified can be seen in the second table below. Awards outstanding under the plan As of September 29, 2024 and December 31, 2023, there were 1,316,961 and 2,327,384 RSUs outstanding under the 2021 Plan, respectively. As of September 29, 2024 and December 31, 2023, there were 6,177,985 and 6,498,915 SARs outstanding under the 2020 Plan and 2021 Plan, respectively. As of September 29, 2024 and December 31, 2023, there were 617,486 and zero PSUs outstanding under the 2021 Plan, respectively. As of September 29, 2024 and December 31, 2023, there were zero restricted stock awards outstanding under the 2020 Plan, respectively. Share-based compensation during the 13 weeks and 39 weeks ended September 29, 2024 and October 1, 2023 was recorded in the consolidated statements of operations within a separate line item as shown in the following table:
(1) Relates to employment related taxes, including employer national insurance tax in the UK. These amounts were settled in cash and are not included in additional paid-in capital or as an adjustment to reconcile net loss to net cash used in operating activities in the consolidated statements of cash flows.
The weighted-average assumptions used in valuing SARs granted or modified during each period are set forth in the following table:
(1) The expected life assumption is based on the Company's expectation for the period before exercise. (2) The expected volatility assumption is developed using leverage-adjusted historical volatilities for public peer companies for the period equal to the expected life of the awards. (3) The risk-free rate is based on the bootstrap adjusted US Treasury Rate Yield Curve Rate as of the valuation date, term matched with expected life of the awards. (4) The expected dividend yield is 0.0% since the Company does not expect to pay dividends.
As of September 29, 2024, total compensation expense not yet recognized is as follows: • With respect to the unvested SARs issued under the 2020 Plan and 2021 plans, approximately $1 million, which is expected to be recognized over a weighted-average period of 0.45 years; and •
With respect to the RSUs and PSUs issued under the 2021 Plan, approximately $8 million, which is expected to be recognized over a weighted-average period of 1.03 years. |
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Loss Per Share and Shareholders' Equity (Deficit) |
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| Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Loss Per Share and Shareholders' Equity (Deficit) | 12. Loss Per Share and Shareholders’ Equity (Deficit) Holders of Class A common stock and Class B common stock are entitled to receive dividends out of legally available funds on a pari passu basis. Holders of Class A common stock are entitled to one vote per share, while holders of Class B common stock are entitled to 10 votes per share. Each holder of Class B common stock has the right to convert its shares of Class B common stock into shares of Class A common stock, at any time, on a one-for-one basis. Additionally, shares of Class B common stock will automatically convert into shares of Class A common stock, on a one-for-one basis, upon transfer to any non-permitted holder of Class B common stock. Holders of Class A and Class B common stock are entitled to liquidation distributions on a pro rata basis, subject to prior satisfaction of all outstanding debt and liabilities and the payment of liquidation preferences, if any. The tables below present changes in each class of the Company’s common stock, as applicable:
Share Repurchases On March 18, 2022, the Company’s board and a relevant sub-committee thereof authorized and approved a stock repurchase program for up to $50 million of the then outstanding shares of the Company’s Class A common stock. Under the stock repurchase program, the Company was authorized to repurchase from time-to-time shares of its outstanding Class A common stock on the open market or in privately negotiated transactions in the United States. The timing and amount of stock repurchases depended on a variety of factors, including market conditions as well as corporate and regulatory considerations. The stock repurchase program could have been suspended, modified or discontinued at any time, in accordance with relevant and applicable regulatory requirements, and the Company has had no obligation to repurchase any amount of its common stock under the program. The Company intended to make all repurchases in accordance with applicable federal securities laws, including Rule 10b5-1 trading plans and under Rule 10b-18 of the Securities Exchange Act of 1934 (the “Exchange Act”), as amended. Under the program, the repurchased shares were returned to the status of authorized, but unissued shares of common stock held in treasury at average cost. The repurchase plan upper limit of $50 million was met in December 2022 and as such there were no further stock repurchases under the above plan subsequent to December 2022. On September 20, 2023, the Company repurchased 2 million shares of its Class A common stock from its Founder and director Nick Jones for $12 million. The privately negotiated transaction was approved by the board of directors. The shares are now held as treasury shares by the Company. On February 9, 2024, the Company’s board and a relevant sub-committee authorized and approved a new stock repurchase program for up to $50 million of the currently outstanding shares of the Company’s Class A common stock. During the 13 weeks and 39 weeks ended September 29, 2024, the Company repurchased a total of 2,269,130 shares and 3,160,175 shares of Class A common stock for $13 million and $17 million, respectively, including commissions, under the new program. The repurchased shares are held as treasury shares by the Company. Loss Per Share The Company computes loss per share using the two-class method. As the liquidation and dividend rights are identical, the undistributed earnings or losses are allocated on a proportionate basis to each class of common stock, and the resulting basic and diluted loss per share attributable to common stockholders are therefore the same for Class A and Class B common stock. |
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Commitments and Contingencies |
9 Months Ended |
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Sep. 29, 2024 | |
| Commitments and Contingencies Disclosure [Abstract] | |
| Commitments and Contingencies | 13. Commitments and Contingencies
Litigation Matters The Company is not a party to any litigation other than litigation in the ordinary course of business. The Company’s management and legal counsel do not expect that the ultimate outcome of any of its currently ongoing legal proceedings, individually or collectively, will have a material adverse effect on the Company’s unaudited condensed consolidated financial statements. |
Income Taxes |
9 Months Ended |
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Sep. 29, 2024 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | 14. Income Taxes During the 13 weeks ended September 29, 2024, the Company identified a misstatement in the geographic allocation of its legal entity level forecasts which impacted the calculation of the interim tax expense for Q1 2024 and Q2 2024 previously reported periods. There was no material impact on Group level forecasts. There have been no other material changes in the Company’s estimates or provisions for income taxes recorded in the unaudited condensed consolidated balance sheet for the 13 weeks and 39 weeks ended September 29, 2024. Refer to Note 17, Revision of Prior Period Financial Statement for further information. Full valuation allowances have been recorded against the incremental deferred tax assets recognized for tax losses, share-based compensation, and excess interest primarily in the U.K., U.S. and Hong Kong. The Company continues to evaluate all positive and negative evidence to assess the realizability of its net deferred tax assets and it is reasonably possible that there may be a change in the valuation allowance within the next twelve months. The gross unrecognized tax benefits have increased by $8 million for both 13 weeks and 39 weeks ended September 29, 2024. The effective tax rate for the 13 weeks ended September 29, 2024 was 96.17%, compared to (9.52%) for the 13 weeks ended October 1, 2023, as revised. The effective tax rate for the 39 weeks ended September 29, 2024 was (23.76)% compared to (8.61%) for the 39 weeks ended October 1, 2023, as revised. The effective tax rates for the 13 weeks and 39 weeks ended September 29, 2024 differ from the US statutory rate of 21% primarily due to the mix of positive and negative earnings in the various jurisdictions the Company operates in and valuation allowances which reduce the amount of tax benefit recognized on the pretax book loss. Additionally, the Company is calculating current tax charges in certain non-U.S. jurisdictions related to uncertain tax positions over a pretax book loss for the 39 weeks ended September 29, 2024 which is the primary difference as compared to the prior year. The Organization for Economic Cooperation and Development (OECD) global tax reform initiative introduces a global minimum tax of 15% on country-by-country profits applicable to large multinational corporations. As part of this international initiative, the UK enacted its BEPS Pillar Two Minimum Tax legislation in July 2023 with effect for accounting periods beginning on or after December 31, 2023. The Company has carried out an assessment of the impact of this legislation for the 39 weeks ended September 29, 2024 and has concluded that these new rules are not likely to have a material impact on the Company's effective tax rate or tax payments for this period. The Company will undertake this assessment for subsequent reporting periods to monitor its compliance with the GloBE rules for fiscal 2024. |
Segments |
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| Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segments | 15. Segments
The Company’s core operations comprise of Houses, hotels and restaurants across a number of territories, which are managed on a geographical basis. There is a segment managing director for each of the UK, The Americas, Europe and Rest of the World (“RoW”) who is responsible for Houses, hotels and restaurants in that region. Each operating segment manager reports directly to the Company’s Chief Operating Decision Maker (“CODM”), the Chief Executive Officer, Chief Financial Officer and Chief Operating Officer combined. In addition to Houses, hotels and restaurants, the Company offers other products and services, such as retail, home & beauty products and services, which comprise its Retail operating segment; access to Soho Works collaboration spaces across the UK and North America, which comprise its Soho Works operating segment; and memberships for people who live in cities where physical Houses do not exist, which comprise its Cities Without Houses operating segment. The Retail, Soho Works, and Cities Without Houses operating segments also have segment managers which report directly to the CODM and are managed separately from the Houses, hotels and restaurants in each region. The Company has identified the following three reportable segments:
• UK, • The Americas, and • Europe and RoW.
The Company analyzed the results of the Retail, Soho Works, Soho Restaurants, and Cities Without Houses operating segments and concluded that they did not warrant separate presentation as reportable segments as they do not provide additional useful information to the readers of the financial statements. Therefore, these segments are included as part of an “All Other” category. The historical North America reportable segment has been renamed to The Americas; however, there is no change to the manner in which the segment was previously presented. Intercompany revenues and costs among the reportable segments are not material and are accounted for as if the sales were to third parties because these items are based on negotiated fees between the segments involved. All intercompany transactions and balances are eliminated in consolidation. Intercompany revenues and costs between entities within a reportable segment are eliminated to arrive at segment totals. Segment revenue includes revenue of certain equity method investments, which are considered stand-alone operating segments, which are therefore not included in revenues as part of these consolidated financial statements. Eliminations between segments are separately presented. Corporate results include amounts related to corporate functions such as administrative costs and professional fees. Income tax expense is managed by Corporate on a consolidated basis and is not allocated to the reportable segments. The Company manages and assesses the performance of the reportable segments by Reportable segments EBITDA, which is defined as net income (loss) before depreciation and amortization, interest expense, net, provision (benefit) for income taxes, adjusted to take account of the impact of certain non-cash and other items that the Company does not consider in its evaluation of ongoing operating performance. These other items include, but are not limited to, loss (gain) on sale of property and other, net, share of loss (profit) of equity method investments, foreign exchange, pre-opening expenses, non-cash rent, deferred registration fees, net, share of equity method investments EBITDA, share-based compensation expense, and certain other expenses.
The following tables present disaggregated revenue for the 13 weeks and 39 weeks ended September 29, 2024 and October 1, 2023 and the key financial metrics reviewed by the CODM for the Company’s reportable segments:
The following tables present the reconciliation of reportable segment EBITDA to total consolidated segment revenue:
(1) Following the Company's impairment review, the Company recognized $14 million of impairment losses on long-lived assets (comprised of $11 million in respect of Operating lease assets and $3 million of Property and equipment, net), of which $14 million is in respect of Soho Works North America and less than $1 million relates to a UK restaurant site. .
(1) Following the Company's impairment review, the Company recognized $14 million of impairment losses on long-lived assets (comprised of $11 million in respect of Operating lease assets and $3 million of Property and equipment, net), of which $14 million is in respect of Soho Works North America and less than $1 million related to a UK restaurant site. (2) Other expenses, net include a $2 million expense related to professional service fees associated with the Company's shareholder activism response, a $2 million expense related to third party advisory expenses incurred by the Company's independent special committee in request of the evaluation of certain strategic transactions and a $6 million expense incurred with respect to a strategic reorganization program of the Company's operations and support teams. Further, the Company recognized $5 million of impairment losses on intangible assets related to the termination of two hotel management contracts.
The following table presents long-lived asset information (which includes property and equipment, net, operating lease right-of-use assets and equity method investments) by geographic area as of September 29, 2024 and December 31, 2023. Asset information by segment is not reported internally or otherwise regularly reviewed by the CODM.
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Related Party Transactions and Balances |
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| Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Related Party Transactions and Balances | 16. Related Party Transactions and Balances The amounts owed by (to) equity method investees due within one year are as follows:
Amounts owed by equity method investees due within one year are included in prepaid expenses and other current assets on the consolidated balance sheets. Amounts owed to equity method investees due within one year are included in other current liabilities on the consolidated balance sheets. Lease contracts with Related Parties Through Soho Works 875 Washington, LLC, the Company is a party to a property lease agreement dated April 19, 2019, for 875 Washington Street, New York with 875 Washington Street Owner, LLC, an affiliate of Raycliff Capital, LLC controlled by a member of the board until June 20, 2024 when the member of the board stood down from their position. The handover of five floors of the leased property occurred on a floor-by-floor basis resulting in multiple lease commencement dates in 2019 and 2020. The various lease contracts run for a term of 15 years until March 31, 2036, with further options to extend. The total operating lease right-of-use asset and liability associated with this property were $35 million and $54 million, respectively, as of December 31, 2023. The rent expense associated with this lease was $5 million during the 39 weeks ended September 29, 2024 and was $2 million during the 13 weeks ended October 1, 2023, and $5 million during the 39 weeks ended October 1, 2023. The Company is party to a property lease arrangement with The Yucaipa Companies LLC ("Yucaipa") for 9100-9110 West Sunset Boulevard, Los Angeles, California. This lease runs for a term of 15 years until March 31, 2030. The operating right-of-use asset and liability associated with this lease are $7 million and $8 million as of September 29, 2024, respectively, and $16 million and $21 million as of December 31, 2023, respectively. Rent expense associated with this lease totaled $1 million for both of the 13 weeks ended September 29, 2024 and October 1, 2023, and $2 million and $2 million during the 39 weeks ended September 29, 2024 and October 1, 2023, respectively.
Through Soho-Ludlow Tenant LLC, the Company is a party to a property lease agreement dated May 3, 2019, for 137 Ludlow Street, New York with 137 Ludlow Gardens LLC, an affiliate of Yucaipa. This lease runs for a term of 27 years until May 31, 2046, with options to extend for two additional five-year terms. The operating lease right-of-use asset and liability associated with this lease were $8 million and $15 million, respectively, as of September 29, 2024 and $8 million and $15 million, respectively, as of December 31, 2023. The rent expense associated with this lease was less than $1 million and less than $1 million for the 13 weeks ended September 29, 2024 and October 1, 2023, respectively, and $1 million and $1 million during the 39 weeks ended September 29, 2024 and October 1, 2023, respectively.
The Company leases the Little House West Hollywood, 8465 Hollywood Drive, West Hollywood, California, from GHWHI, LLC, an affiliate of Yucaipa, until August 2024 when ownership was transferred to a third party. This lease commenced on October 16, 2021. This lease runs for a term of 25 years (15-year base lease term, including two 5-year renewal options). The operating lease right-of-use asset and liability associated with this lease were $63 million and $67 million, respectively, as of September 29, 2024 and $64 million and $68 million, respectively, as of December 31, 2023. The receivable recognized by The Company was less than $1 million and less than $1 million for as of September 29, 2024 and December 31, 2023, respectively. The rent expense associated with this lease was $1 million and $1 million for the 13 weeks ended September 29, 2024 and October 1, 2023, respectively, and $4 million and $4 million during the 39 weeks ended September 29, 2024 and October 1, 2023, respectively.
The Company leases the Tel Aviv House, 27 Yefet Street, Tel Aviv, Israel, from an affiliate of Raycliff Capital, LLC which held a portion of the SHHL redeemable C ordinary shares prior to the IPO and continues to hold Class A common stock of SHCO however on June 20, 2024 the affiliate stood down from the board. This lease commenced on June 1, 2021. This lease runs for a term of 19 years until December 15, 2039. The operating lease right-of-use asset and liability associated with this lease were $20 million and $22 million, respectively, as of December 31, 2023. The rent expense associated with this lease was $1 million for the 39 weeks ended September 29, 2024 was $1 million for the 13 weeks ended October 1, 2023, and $2 million during the 39 weeks ended October 1, 2023, respectively. The Company leases a property from GHPSI, LLC, an affiliate of Yucaipa, in order to operate the Le Vallauris restaurant, 385 West Tahquitz Canyon Way, Palm Springs, California. This lease runs for a term of 15 years until March 16, 2037, with options to extend for two additional five-year terms. The operating lease right-of-use asset and liability associated with this lease were $6 million and $6 million, respectively, as of September 29, 2024 and $6 million and $7 million, respectively as of December 31, 2023. The rent expense associated with this lease was less than $1 million and less than $1 million for the 13 weeks ended September 29, 2024 and October 1, 2023, respectively, and $1 million and $1 million during the 39 weeks ended September 29, 2024 and October 1, 2023, respectively.
runs for a term of 15 years, with options to extend for two additional five-year terms. The lease term, and rent payments under the lease, have not yet commenced as the property is not yet operational. This has a receivable balance of less than $1 million and less than $1 million as of September 29, 2024 and December 31, 2023, respectively. The Company leases a property from GHPSI, LLC, an affiliate of Yucaipa, in order to operate the Willows Historic Palm Springs Inn, 412 West Tahquitz Canyon Way, Palm Springs, California. This lease commenced on September 15, 2022. This lease runs for a term of 15 years until September 14, 2037, with options to extend for two additional five-year terms. The operating lease right-of-use asset and liability associated with this lease were $13 million and $14 million, respectively, as of September 29, 2024 and $14 million and $14 million, respectively, as of December 31, 2023. The receivable due to the Company associated with this lease was $1 million and $1 million as of September 29, 2024 and December 31, 2023 respectively. The rent expense associated with this lease was less than $1 million and less than $1 million for the 13 weeks ended September 29, 2024 and October 1, 2023, respectively, and $1 million and $1 million during the 39 weeks ended September 29, 2024 and October 1, 2023, respectively. The Company leased the Soho House Stockholm property located at Majorsgatan 5, Stockholm, Sweden from Majorsbolaget AB, an affiliate of Yucaipa, until October 2023 when ownership was transferred to a third party. The operating lease right-of-use asset and liability associated with this lease were $29 million and $30 million, respectively, as of December 31, 2023.The rent expense associated with this lease was $1 million for the 13 weeks ended October 1, 2023 and $2 million for the 39 weeks ended October 1, 2023. Hotel Management agreements with Related Parties The Company recognized management fees, development fees and cost reimbursements from the Ned-Soho House, LLP, a joint venture between the Company and an affiliate of Yucaipa, related to the operations of the Ned London. The Company recognized a receivable of $3 million and $3 million reported within "Accounts receivable, net" in the unaudited condensed consolidated balance sheet as of September 29, 2024 and December 31, 2023. The Company also recorded a payable of $3 million and $2 million reported within "Accounts payable net" in the unaudited condensed consolidated balance sheet as of September 29, 2024 and December 31, 2023. Ned-Soho House, LLP also recognized a receivable relating to Retail related revenue from Soho House brands for $2 million and $2 million reported within "Accounts receivable, net" in the unaudited condensed consolidated balance sheet as of September 29, 2024 and December 31, 2023 and a payable for less than $1 million and less than $1 million reported within "Accounts payable net" in the unaudited condensed consolidated balance sheet as of September 29, 2024 and December 31, 2023 .The revenue recognized from the management fees, development fees and cost reimbursements was $1 million and $2 million during 13 weeks ended September 29, 2024 and October 1, 2023, respectively, and $3 million and $4 million during the 39 weeks ended September 29, 2024 and October 1, 2023, respectively and they are reported within "Other Revenues" in the unaudited condensed consolidated statement of operations. The revenue recognized from the Retail related services was less than $1 million and less than $1 million during the 13 weeks and 39 weeks ended September 29, 2024 and October 1, 2023 and they are reported within "Other Revenues" in the unaudited condensed consolidated statement of operations. The Company recognized management fee income from the Ned NY 28th, LLC, an affiliate of Yucaipa, related to the operations of The Ned New York, which opened in June 2022, leading to a receivable of $6 million and $3 million reported within "Accounts receivable, net" in the unaudited condensed consolidated balance sheet as of September 29, 2024 and December 31, 2023. The fees totaled less than $1 million and less than $1 million during both of the 13 weeks ended September 29, 2024 and October 1, 2023 and $1 million and $1 million during both of the 39 weeks ended September 29, 2024 and October 1, 2023 and they are reported within "Other Revenues" in the unaudited condensed consolidated statement of operations. The Ned New York also recognized a receivable, reported within "Accounts receivable, net" in the unaudited condensed consolidated balance sheet, relating to Retail related revenue from Soho House brands for less than $1 million and less than $1 million for the 13 weeks ended September 29, 2024 and October 1, 2023, respectively, and less than $1 million for both the 39 weeks ended September 29, 2024 and October 1, 2023 reported within "Other Revenues" in the unaudited condensed consolidated statement of operations. The Company recognized management fees and cost reimbursements from Oryx Corniche Developments QPSC, an affiliates of Yucaipa, related to the operations of The Ned Doha, which opened in November 2022, leading to a receivable balance totaling $3 million and $2 million reported within "Accounts receivable, net" in the unaudited condensed consolidated balance sheet for September 29, 2024 and December 31, 2023 and a payable balance of $1 million and less than $1 million reported within "Accounts payable net" in the unaudited condensed consolidated balance sheet as of September 29, 2024 and December 31, 2023. The Ned Doha had an accrued revenue balance of less than $1 million and $1 million recorded within "Prepaid expenses and other current assets" in the unaudited condensed consolidated balance sheet as of September 29, 2024 and December 31, 2023. The fees totaled less than $1 million and $1 million during the 13 weeks ended September 29, 2024 and October 1, 2023 and $2 million and $2 million during the 39 weeks ended September 29, 2024 and October 1, 2023, respectively and they are reported within "Other Revenues" in the unaudited condensed consolidated statement of operations. The Company received management fees under our hotel management contract for the operation of The LINE and Saguaro hotels from LA Wilshire Hotel LLC, Adams Morgan Hotel Owner LLC, Downtown Austin Lakeside Hotel LLC and Palm Canyon Hotel LLC as the owners of the LINE and Saguaro hotels, which are affiliates of Yucaipa. These fees led to a receivable of $9 million and $6 million reported within "Accounts receivable, net" in the unaudited condensed consolidated balance sheet as of September 29, 2024 and December 31, 2023. The fees, recorded under Other Revenue, amounted to $3 million and $2 million during the 13 weeks ended September 29, 2024 and October 1, 2023, and $8 million and $6 million during the 39 weeks ended September 29, 2024 and October 1, 2023, respectively. The Company recognized management fees under our studio, hotel and restaurant management contract for the operation of Redchurch Street studio space, hotel and Cecconi's from an affiliate of Raycliff Capital, LLC which was controlled by a member of the SHCO board of directors until June 20, 2024 when the member stood down from the board. The fees led to a receivable of $6 million reported within "Accounts receivable, net" in the unaudited condensed consolidated balance sheet as of June 30, 2024 and December 31, 2023. The costs invoiced to The Company lead to a payable of $4 million and $4 million reported within "Accounts payable net" in the unaudited condensed consolidated balance sheet as of June 30, 2024 and December 31, 2023. The Company also recognized accrued income of $1 million and less than $1 million recorded within "Prepaid expenses and other current assets" in the unaudited condensed consolidated balance sheet as of June 30, 2024 and December 31, 2023. The fees totaled less than $1 million during the 13 weeks ended October 1, 2023 and less than $1 million for the 26 weeks ended June 30, 2024 and 39 weeks ended October 1, 2023 and they are reported within "Other Revenues" in the unaudited condensed consolidated statement of operations. Design Service Management Agreements with Related Parties Fees from the provision of Soho House Design services to affiliates, Oryx Corniche Developments QPSC, have led to a receivable totaling $2 million and $2 million reported within "Accounts receivable, net" in the unaudited condensed consolidated balance sheet as of September 29, 2024 and December 31, 2023, respectively. The fees received from affiliates totaled less than $1 million and $1 million during the 13 weeks ended September 29, 2024 and October 1, 2023, respectively, and totaled $1 million and $1 million for the 39 weeks ended September 29, 2024 and October 1, 2023, respectively, and they are reported within "Other Revenues" in the unaudited condensed consolidated statement of operations. Costs incurred on behalf of GH123Greenwich LLC, GH 1170 Broadway and 730 15th Street Club LLC in connection to the provision of Soho House Design services led to a receivable for $2 million and $1 million, which is reported within "Accounts receivable, net" as of September 29, 2024 and December 31, 2023 . The Soho House Design services led to a payable of $1 million and nil as of September 29, 2024 and December 31, 2023 which is reported within "Accounts payable net" in the unaudited condensed consolidated balance sheet. The fees recognized relating to Soho House Design services on behalf of associates totaled less than $1 million and less than $1 million for the 13 weeks ended September 29, 2024 and October 1, 2023 and less than $1 million and $1 million for the 39 weeks ended September 29, 2024 and October 1, 2023, respectively, and they are reported within "Other Revenues" in the unaudited condensed consolidated statement of operations. In September 2023, the Company repurchased 2,000,000 shares of its Class A common stock from its Founder and director Nick Jones in a privately negotiated transaction for $12 million. These shares are held by the Company as Treasury shares. The Company reported a combined total amount related to the transactions listed above of $28 million and $28 million in current assets as of September 29, 2024 and December 31, 2023 in the unaudited condensed consolidated balance sheet. The Company reported a combined related party receivable of $28 million and $26 million as of September 29, 2024 and December 31, 2023, respectively, reported within “Accounts receivable, net”, and accrued revenue of less than $1 million and $2 million as of September 29, 2024 and December 31, 2023, respectively, reported within “Prepaid expenses and other current assets.” The Company reported a combined right-of-use asset of $98 million and $194 million as of September 29, 2024 and December 31, 2023, respectively, reported within “Operating lease assets” in the unaudited condensed consolidated balance sheet. Included in current liabilities in the unaudited condensed consolidated balance sheet are amounts due to related parties listed above of $3 million and $5 million reported within “Current portion of operating lease liabilities - sites trading more than one year” as of September 29, 2024 and December 31, 2023, respectively. The related combined long term lease liability amounts to $108 million and $226 million reported in “Operating lease liabilities, net of current portion - sites trading more than one year” as of September 29, 2024 and December 31, 2023, respectively. Further, the Company recognized a payable, recorded within “Accounts payable”, of $5 million and $6 million as of September 29, 2024 and December 31, 2023, respectively, related to transactions listed above. The Company reported in the unaudited condensed consolidated statement of operations a combined amount of revenue generated from related party transactions listed above of $5 million and $7 million during the 13 weeks ended September 29, 2024 and October 1, 2023, respectively, and $15 million and $16 million during the 39 weeks ended September 29, 2024 and October 1, 2023, respectively, reported in "Other revenue". The straight line rent recorded within “In-house operating expenses” associated with the related party leases listed above amounts to $3 million and $6 million for the 13 weeks ended September 29, 2024 and October 1, 2023 and $14 million and $18 million for the 39 weeks ended September 29, 2024 and October 1, 2023, respectively. The Company is party to various transactions with affiliates of Yucaipa, as identified above. Yucaipa, through its participation in the Voting Group, has significant influence over us, including control over decisions that require the approval of stockholders. The Voting Group constitutes our Founder and director Nick Jones, Richard Caring a director, and certain affiliates of Yucaipa and its Founder and our executive chairman and a director, Ron Burkle, together with their respective family members and certain affiliates. |
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Revision of Prior Period Financial Statements |
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| Disclosure Text Block [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revision of Prior Period Financial Statements | 17. Revision of Prior Period Financial Statements
As described in Note 2 Summary of Significant Accounting Policies, during the 13-week period ended September 29, 2024, in connection with a planned ERP systems upgrade, the Company performed a number of initiatives including continuing to work with external consultants to review and strengthen its internal controls and processes, including reconciliations and completing the implementation of a new ERP system for its retail business in August 2024. Through the performance of these activities, management identified misstatements in its previously issued financial statements and confirmed the financial statement impact of previously identified uncorrected immaterial misstatements. While correction of these adjustments as out of period corrections would be material in aggregate to the current period, the Company determined the impacts of these misstatements were not material to the financial statements for all prior periods identified. As a result, the Company has revised its Fiscal 2023 and Fiscal 2022 consolidated financial statements and Q2 2024, Q1 2024, Q3 2023, Q2 2023 and Q1 2023 unaudited condensed consolidated financial statements to adjust for the impact of these misstatements.
The Company has classified the majority of the misstatements into the following major categories: 1. North America segment balance sheet reconciliations – the Company identified misstatements during the balance sheet reconciliation process which impacted several years and financial statement line items. The identified misstatements primarily related to items that should have been expensed as In-House and Other operating expenses but were manually coded incorrectly or not picked up in our systems. On the statement of operations, this misstatement resulted in an understatement of net loss of $5 million in Fiscal 2022 (and interim periods), $7 million in Fiscal 2023 (and interim periods), an overstatement of less than $1 million in Q1 2024 and an understatement of less than $1 million in Q2 2024. On the balance sheet, this misstatement impacted accounts receivables, accrued liabilities, indirect and employee taxes payable and other current liabilities, resulting in an overstatement of net assets of $6 million as at Fiscal 2022, $12 million as at Fiscal 2023, $12 million as at Q1 2024 and $13 million as at Q2 2024. This included a net decrease in Cash and cash equivalents of $1 million as at Fiscal 2022, $3 million as at Fiscal 2023, $2 million in Q1 2023, Q2 2023 and Q3 2023, $3 million as at Q1 2024 and Q2 2024, related to unrecorded credit card fees and identified errors in transactions recorded in the cash control account for which cash was not received. On the statement of cash flows, the misstatement resulted in an overstatement of net cash provided by operating activities of $3 million in Fiscal 2022 and Fiscal 2023, $1 million in Q1 2024 and $3 million in Q2 2024. 2. Soho Home sale transactions – the Company implemented a new ERP system for the retail business in August 2024. As part of the cutover process into the new system, transactions were identified that had not been loaded from the commercial third party external system into the Company’s previous ERP system. On the statement of operations, this misstatement resulted in an understatement of Other revenues and Other operating expenses of $3 million and $1 million in Fiscal 2022, respectively; and $1 million and less than $1 million in Fiscal 2023, respectively, so an understatement of net income of $2 million in Fiscal 2022; and less than $1 million in Fiscal 2023. On the balance sheet, this misstatement impacted inventories and deferred income financial statement line items which resulted in an understatement of net assets of $2 million as at Fiscal 2022 and $2 million as at Fiscal 2023, Q1 2024 and Q2 2024.There was no impact on the statement of cash flows presented in the fiscal and interim periods impacted by these errors. 3. Soho Works embedded lease accounting – the Company had not correctly identified a large Soho Works office contract as an embedded lease and failed to split the payments received under this contract as Membership revenues and as a credit to Other operating expenses (rent expense). This misstatement resulted in an overstatement of Membership revenues and Other operating expenses of $5 million in Fiscal 2023, $1 million in Q1 2024 and $1 million in Q2 2024, respectively, which offset one another to have a net nil impact on net income, and a net nil impact on net assets and cash flows. There was no impact on the balance sheet and statement of cash flows presented in the fiscal and interim periods impacted by these errors. 4. Revenue recognition of exclusivity and incentive fees – in Q3 2023, the Company incorrectly recognized revenue in connection with two contracts in the Asian region at a point in time through Other revenues rather than over time through the identified performance obligation period. On the statement of operations, this misstatement resulted in an overstatement of Other revenues of $6 million in Q3 2023 and Fiscal 2023, respectively, and an understatement of Other revenues of less than $1 million in Q1 2024 and Q2 2024, respectively. On the balance sheet, this misstatement resulted in an understatement of deferred revenues of $6 million as at Q3 2023 and as at Fiscal 2023, $6 million as at Q1 2024 and $5 million as at Q2 2024. There was no impact on the statement of cash flows presented in the fiscal and interim periods impacted by these errors. 5. Income tax (expense) benefit – the Company identified a misstatement in the geographic allocation of its legal entity level forecasts which impacted the calculation of the interim tax (expense) for Q1 2024 and Q2 2024 previously reported periods. There was no material impact on Group level forecasts. These adjustments resulted in revisions to its estimated annual effective tax rate and the interim tax (expense) benefit previously recorded in Q1 2024 and Q2 2024. On the statement of operations, this misstatement resulted in an overstatement of the income tax (expense) of $4 million in Q1 2024 and $5 million in Q2 2024, which have a cumulative impact of $9 million on net income. On the balance sheet, this misstatement resulted in an understatement of deferred tax assets of $3 million and an overstatement of other current liabilities of $1 million as at Q1 2024 and an understatement of deferred tax assets of $3 million and an overstatement of other non-current tax liabilities of $6 million as at Q2 2024. There was no impact on the statement of cash flows presented in the fiscal and interim periods impacted by these misstatements.
The identified misstatements resulted in adjustments to a various financial statement line items in the balance sheets, the statements of operations and the statements of cash flows across the periods presented in the tables below as follows: • an immaterial overstatement of Total revenues, Other operating expenses, Depreciation and amortization, Income tax expense, Cash and cash equivalents, Inventories, Prepaid expenses and other current assets, Property and equipment, net, Equity method investments and • an immaterial understatement of In-House operating expenses, Pre-opening expenses, Accounts receivable, net, Operating lease assets, Accrued liabilities, Current portion of deferred revenue, Indirect and employee taxes payable and Other current liabilities.
The Company assessed the materiality of the errors, both individually and in aggregate, including as out of period corrections in the current period as well as corrections to impacted prior period consolidated financial statements, on a qualitative and quantitative basis in accordance with SEC Staff Accounting Bulletins (“SAB”) No. 99, Materiality, and No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements, codified in Accounting Standards Codification (“ASC”) Topic 250, Accounting Changes and Error Corrections. The Company evaluated the materiality of the errors on the Fiscal 2023 and Fiscal 2022 consolidated financial statements and Q2 2024, Q1 2024, Q3 2023, Q2 2023 and Q1 2023 unaudited condensed consolidated financial statements and determined that they did not result in a material misstatement to the financial condition, results of operations, change of trend, or liquidity for any of these periods previously presented. However, the Company determined that the effect of recording the misstatements during the 13-week and 39-week periods ended as of September 29, 2024, would be material to the consolidated financial statements for the 52-week period ended December 29, 2024. As a result, the Company revised its previously issued consolidated financial statements.
The revision of the historical consolidated financial statements also includes the correction of other previously identified immaterial errors, which have impacted a number of financial statement line items in the balance sheets, the statements of operations and the statements of cash flows across the periods presented in the tables below that follow. The Company had previously determined that these adjustments did not, either individually or in the aggregate, result in a material misstatement of its previously issued consolidated financial statements. Further, the revision of the Fiscal 2022 consolidated financial statements includes as an out of period adjustment misstatements identified impacting periods pre-Fiscal 2022. Management has concluded that the impact pre-Fiscal 2022 is not material and will be part of the revisions in Fiscal 2022.
The Company believes the misstatements identified are related to manual processes and the existing material weaknesses in our control over financial reporting as described in the most recently filed Form 10-K for the fiscal year as of and ended December 31, 2023. The Company has devoted, and will continue to devote, significant time and resources to complete its remediation of the material weaknesses. The following components of the ongoing remediation plan, among others, are: • Further enhancing our staff's skill-level and number of accounting staff within the finance department, especially in the Americas • Implementing a new ERP system that supports the transition away from manual processes and legacy systems • Investing in and improving other finance and controls related technology • Continuing to engage with external consultants to support the review and assist in strengthening the Company’s internal controls and processes
Further, the Company is focused on continuing to bolster its Transformation and Finance teams including by hiring a Chief Transformation Officer (November 2024) to lead the ERP system implementation and a number of personnel with a higher level of knowledge and experience including application of US GAAP, internal audit and SOX compliance.
The Company considers that the actions described above are comprehensive and will remediate the material weaknesses and strengthen the Company’s internal control over financial reporting. Given the Company on-going process of recruiting experienced accounting staff and implementing the new ERP system, the Company believes that additional time will be beneficial to demonstrate that the new personnel, in conjunction with the new system, have the ability to consistently perform their responsibilities to ensure that the material weaknesses have been fully remediated. Therefore, the Company has concluded that these material weaknesses will not be considered fully remediated until the remediation actions, including those above, have operated effectively for a sufficient period of time and have been sufficiently tested. Further information regarding the misstatements and related revisions including details of the corrections on the impacted financial statement line items are summarized in the tables below.
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Subsequent Events |
9 Months Ended |
|---|---|
Sep. 29, 2024 | |
| Subsequent Events [Abstract] | |
| Subsequent Events | Subsequent Events Shares Issued Subsequent to September 29, 2024, the Company issued a total of 949 shares of Class A common stock as a result of SARs being exercised. Lease contracts with related parties On October 21, 2024, the Le Vallauris restaurant California (US), and the Willows Historic Palm Springs Inn (California, US) lease contracts were modified to defer the rent until Palm Springs Soho House opening date. This modification was a result of rent negotiation efforts between two parties to reflect the commercial relationship between the restaurant, inn and House locations. As disclosed in Note 16 Related Party Transactions, the Company leases these properties from GHPSI, LLC, an affiliate of Yucaipa. |
Summary of Significant Accounting Policies (Policies) |
9 Months Ended |
|---|---|
Sep. 29, 2024 | |
| Accounting Policies [Abstract] | |
| Basis of Presentation | Basis of Presentation The consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for reporting interim information on Form 10-Q. The preparation of the financial statements in conformity with US GAAP requires the use of estimates, judgments and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenues and expenses during the periods presented. The Company's significant estimates relate to the valuation of financial instruments, equity method investments, the measurement of goodwill and intangible assets, contingent liabilities, income taxes, leases, and long-lived assets. Although the estimates have been prepared using management's best judgment and management believes that the estimates used are reasonable, actual results could differ from those estimates and such differences could be material. We operate on a fiscal year calendar consisting of a 52-or 53-week period ending on the last Sunday in December or the first Sunday in January of the next calendar year. In a 52-week fiscal year, each quarter contains 13 weeks of operations; in a 53-week fiscal year, each of the first, second and third quarters includes 13 weeks of operations and the fourth quarter includes 14 weeks of operations. Certain information and footnote disclosures normally included in financial statements prepared in accordance with US GAAP have been omitted in accordance with the rules and regulations of the SEC. The year-end condensed consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by US GAAP. The unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes thereto, included in the Company’s Annual Report on Form 10-K as of and for the fiscal year ended December 31, 2023. The results of operations for the 13- and 39-week periods ended September 29, 2024 and October 1, 2023 are not necessarily indicative of the operating results for the full fiscal year or any future periods. |
| Going Concern | Going Concern
The accompanying unaudited condensed consolidated financial statements of the Company have been prepared assuming the Company will continue as a going concern. The going concern basis of presentation assumes that we will continue in operation for at least a period of 12 months after the date these financial statements are issued, and contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.
We have experienced net losses and significant cash outflows over the past years as we develop our Houses. During the 13 weeks and 39 weeks ended September 29, 2024, the Company reported a consolidated net income of $1 million and a consolidated net loss of $71 million, respectively. During the 39 weeks ended September 29, 2024, the Company had net cash provided by operations of $63 million. As of September 29, 2024, the Company had an accumulated deficit balance of $1,448 million, cash and cash equivalents of $143 million, and a restricted cash balance of $4 million.
In assessing the going concern basis of preparation of the unaudited condensed consolidated financial statements for the 13 weeks and 39 weeks ended September 29, 2024, we have taken into consideration detailed cash flow forecasts for the Company, the Company’s forecast compliance with bank covenants, and the timing of debt commitments within 12 months of the approval of these financial statements, and the continued availability of committed and accessible working capital to the Company.
We have considered current global economic and political uncertainties, specifically including inflationary pressures on consumables purchased and wages, and the Company has factored these in when it undertook an assessment of the cash flow forecasts covering a period of at least 12 months from the date these financial statements are issued. Cash flow forecasts have been prepared based on a range of scenarios including, but not limited to, no further debt or equity funding, repayment of existing short-term debt, macro-economic dynamics, cost reductions, both limited and extensive, and a combination of these different scenarios.
Based on the above, the consolidated financial statements have been presented on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. Accordingly, we continue to adopt the going concern basis in preparing the unaudited condensed consolidated financial statements for the 13 weeks and 39 weeks ended September 29, 2024. |
| Comprehensive Loss | Comprehensive Loss The entire balance of accumulated other comprehensive loss, net of income taxes, is related to the cumulative translation adjustment in each of the periods presented. The changes in the balance of accumulated other comprehensive income loss, net of income tax, are attributable solely to the net change in the cumulative translation adjustment in each of the periods presented. |
| Impairment of Other Long-Lived Assets | Impairment of Other Long-Lived Assets The Company recognized $14 million of impairment losses on long-lived assets (comprised of $11 million in respect of Operating lease assets and $3 million of Property and equipment, net) during the 13 weeks and 39 weeks ended September 29, 2024. No impairment losses were recorded for the 13 weeks and 39 weeks ended October 1, 2023. In the 13 weeks ended September 29, 2024, the Company identified a triggering impairment event due to the continued challenges in the cost of real estate and the decreased performance of various Soho Works locations in the USA. The Company performed an impairment analysis on four Soho Work sites in the United States. As a result of the third quarter of 2024 analysis, a $14 million non-cash impairment charge was recorded for these Soho Works sites. The high property costs associated with these locations being the primary factor of the asset impairment. The Company also identified a triggering impairment event in one of their UK restaurant sites. The non-cash impairment charge for the UK restaurant site was less than $1 million. The non-cash impairment charge is included in impairments of assets in the consolidated statement of operations for the 13 weeks ended September 29, 2024. The primary assumptions, which requires significant level of judgement, that affects the undiscounted cash flows determination is management's estimate of future revenues, operating margins, economic conditions and changes in the operating environment. The forecasts used in the impairment assessments was developed by management based on projected revenues derived largely from forecasted member attendance. Management also makes estimates on the expected costs and the expected operating lease costs. Changes in these assumptions could have a significant impact on the recoverability of the assets and may result in additional impairment charges. Changes in the membership, operating margins and economic growth and the contracted operating rental costs beyond what has already been assumed in the assessments could cause management to revise the forecast and assumptions. Unfavorable revisions to these assumptions or estimates could possibly result in further impairment of some or all of the assets. |
| Recently Adopted Accounting Standards | Recently Adopted Accounting Standards In June 2020, the FASB issued ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity. The Company adopted ASU 2020-06 effective January 1, 2024 on a prospective basis. The adoption of ASU 2020-06 did not have a material effect on the Company’s consolidated financial statements and related disclosures. In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. The ASU requires entities to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC 606, Revenue from Contracts with Customers. The Company adopted ASU 2024-02 effective January 1, 2024 on a prospective basis. The adoption of ASU 2024-02 did not have a material effect on the Company’s consolidated financial statements and related disclosures as no business combination transactions have taken place since the Company adopted ASU 2024-02. In August 2023, the FASB issues ASU 2023-02, Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method. The ASU permits reporting entities to elect to account for their tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. The Company adopted ASU 2023-02 in Q1 2024. The adoption of ASU 2023-02 did not have a material effect on the Company’s consolidated financial statements and related disclosures. |
| Future Accounting Standards | Future Accounting Standards
In October 2023, the FASB issued ASU No 2023-06, “Disclosure Agreements – Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative” (“ASU 2023-06”). ASU 2023-06 will align the disclosure and presentation requirements in the FASB Accounting Standards Codification with the SEC’s regulations. The amendments in ASU 2023-06 will be applied prospectively and are effective when the SEC removes the related requirements from Regulations S-X or S-K. Any amendments the SEC does not remove by June 30, 2027 will not be effective. The Company’s is currently evaluating the impact of this ASU on its consolidated financial statements and related disclosures.
In November 2023, the FASB issued ASU No 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”). ASU 2023-07 expands disclosures about a public entity’s reportable segments and requires more enhanced information about a reportable segment’s expenses, interim segment profit or loss, and how a public entity’s chief operating decision maker uses reported segment profit or loss information in assessing segment performance and allocating resources. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. ASU 2023-07 should be applied retrospectively to all prior periods presented in the financial statements. The Company’s is currently evaluating the impact of this ASU on its consolidated financial statements and related disclosures.
In December 2023, the FASB issued ASU No 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”). ASU 2023-09 expands disclosures in the rate reconciliation and requires disclosure of income taxes paid by jurisdiction. ASU 2023-09 is effective for fiscal years beginning after December 15, 2025 or the interim period in which the Company loses emerging growth company status. Early adoption is permitted. ASU 2023-09 should be applied prospectively; however, retrospective application is permitted. The Company’s is currently evaluating the impact of this ASU on its consolidated financial statements and related disclosures.
In March 2024, the FASB issued ASU No 2024-01, "Compensation - Stock Compensation (Topic 718): Scope application for profits interest and similar awards" ("ASU 2024-01"). This update adds an illustrative example to demonstrate how an entity should apply the scope guidance to determine whether profits interest and similar awards ("profits interest awards") should be accounted for in accordance with Topic 718. ASU 2024-01 is effective for fiscal years beginning after December 15, 2025 or the interim period in which the Company loses emerging growth company status. Early adoption is permitted. ASU 2024-01 should be applied retrospectively to all prior periods presented in the financial statements or prospectively. The Company’s is currently evaluating the impact of this ASU on its consolidated financial statements and related disclosures.
In March 2024, the FASB issued ASU No 2024-02, “Codification Improvements - Amendments to Remove References to the Concepts Statements” (“ASU 2024-02”). ASU 2024-02 removes references to various Concepts Statements. In most instances, the references are extraneous and not required to understand or apply the guidance. ASU 2024-02 is effective for fiscal years beginning after December 15, 2025 or the interim period in which the Company loses emerging growth company status. ASU 2024-02 can be applied prospectively or retrospectively. The Company’s is currently evaluating the impact of this ASU on its consolidated financial statements and related disclosures.
In November 2024, the FASB issued ASU No 2024-03, “Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures” ("ASU 2024-03"). ASU 2024-03 requires disclosure in the notes to the financial statements of specified information about certain costs and expenses. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026 and for interim periods within fiscal years beginning after December 15, 2027. ASU 2024-03 should be applied either prospectively to financial statements issued for reporting periods after the effective date of this ASU or retrospectively to any or all prior periods presented in the financial statements. The Company is currently evaluating the impact of ASU 2024-03 on its disclosures. |
| Revision of Prior Period Financial Statements | Revision of Prior Period Financial Statements
On November 6, 2024, the Company announced that it is replacing legacy systems with a new modernized finance Enterprise Resource Planning (“ERP”) system to support its long-term success, controls, and strategic growth initiatives. In preparation for the systems upgrade, the Company has undertaken a number of initiatives including continuing to work with external consultants to support the review and assist in strengthening its internal controls and processes including reconciliations and completing the implementation of a new ERP system for its retail business in August 2024. Further, the Company is focused on continuing to bolster its Transformation and Finance teams including by hiring a Chief Transformation Officer (November 2024) to lead the ERP system implementation and hiring a number of personnel with a higher level of knowledge and experience with the application of US GAAP, internal audit and SOX compliance. During the 13-weeks period ended September 29, 2024, through the performance of these activities, management identified misstatements, as well as confirmed the financial statement impacts of previously identified uncorrected immaterial misstatements, in its previously issued consolidated financial statements as of and for the 52-week period ended December 31, 2023 (“Fiscal 2023”) and January 1, 2023 (“Fiscal 2022”); the unaudited condensed consolidated financial statements as of and for the 13-week periods ended March 31, 2024 (“Q1 2024”) and April 2, 2023 (“Q1 2023”); the unaudited condensed consolidated financial statements as of and for the 13-week and 26-week periods ended June 30, 2024 (“Q2 2024”) and July 2, 2023 (“Q2 2023”); and the unaudited condensed consolidated financial statements as of and for the 13-week and 39-week periods ended October 1, 2023 (“Q3 2023”). The Company believes the misstatements identified through the performance of the activities above is related to manual processes and the existing material weaknesses in our control over financial reporting as described in the most recently filed Form 10-K for the fiscal year ended December 31, 2023. The Company assessed the materiality of the errors, both individually and in aggregate, including as out of period corrections in the current period as well as corrections to impacted prior period consolidated financial statements, on a qualitative and quantitative basis in accordance with SEC Staff Accounting Bulletins (“SAB”) No. 99, Materiality, and No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements, codified in Accounting Standards Codification (“ASC”) Topic 250, Accounting Changes and Error Corrections. While correction of these adjustments as out of period corrections would be material in aggregate to the current period, the Company determined the impacts of these misstatements were not material to the financial statements for all prior periods identified and has accordingly revised the comparative amounts presented. For comparative purposes, the Company has made corrections to the consolidated financial statements and applicable notes for the prior periods presented in this Form 10-Q. Refer to Note 17, Revision of Prior Period Financial Statements, for additional information on the misstatements identified and quantification of the impact of correcting the misstatements. |
Consolidated Variable Interest Entities (Tables) |
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Sep. 29, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Consolidated Variable Interest Entities [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of consolidated VIEs' assets and liabilities included in the condensed consolidated balance sheets |
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| Soho Works Limited [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Consolidated Variable Interest Entities [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of consolidated VIEs' assets and liabilities included in the condensed consolidated balance sheets | The following table summarizes the carrying amounts and classification of the consolidated VIEs’ assets and liabilities included in the consolidated balance sheets. The obligations of the consolidated VIEs are non-recourse to the Company, and the assets of the VIEs can be used only to settle those obligations.
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Equity Method Investments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 29, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of the company's maximum exposure to losses related to its equity method investments | The following table presents summarized financial information for all unconsolidated equity method investees. The Company’s maximum exposure to losses related to its equity method investments is limited to its ownership interests.
(1)
The net income (loss) shown above relates entirely to continuing operations. |
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Leases (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 29, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of the maturity of the Company's operating and finance lease liabilities | The maturity of the Company’s operating and finance lease liabilities as of September 29, 2024 is as follows:
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| Summary of the supplemental disclosure for the statement of cash flows related to operating and finance leases | The following information represents supplemental disclosure for the statement of cash flows related to operating and finance leases:
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| Summary of the additional information related to operating and finance leases | The following summarizes additional information related to operating and finance leases:
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| Summary of the Company's estimated future undiscounted lease payments for current leases | The following summarizes the Company’s estimated future undiscounted lease payments, net of lease incentives, for current leases signed but not commenced, including properties where the SHD team is acting as the construction manager as of September 29, 2024:
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Revenue Recognition (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 29, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue Recognition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of disaggregation of revenue | The following table includes estimated revenues expected to be recognized in the future related to performance obligations that were unsatisfied (or partially unsatisfied) at the end of the reporting period ending September 29, 2024:
The following table provides information about contract receivables, contract assets and contract liabilities from contracts with customers:
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Inventories, Prepaid Expenses and Other Current Assets (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 29, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Prepaid Expense and Other Assets, Current [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Prepaid Expenses And Other Current Assets | The table below presents the components of prepaid expenses and other current assets.
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Accrued Liabilities (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 29, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accrued Liabilities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Accrued Liabilities | The table below presents the components of accrued liabilities.
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Debt (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 29, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of Property Mortgage Loans, Net of Debt Issuance Costs | Debt balances, net of debt issuance costs, are as follows:
Property mortgage loans, net of debt issuance costs, are as follows:
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| Summary Of remaining loans consist | The other loans consist of the following:
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| Summary of Future Principal Payments for the Company's Debt, Property Mortgage Loans, and Related Party Loans | The following table presents future principal payments for the Company’s debt and property mortgage loans as of September 29, 2024:
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Fair Value Measurements (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 29, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of Estimated Fair Values of the Company's Debt Instruments | The following table presents the estimated fair values (all of which are Level 3 fair value measurements) of the Company’s debt instruments with maturity dates in 2025 and thereafter:
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Share-Based Compensation (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 29, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of Share-Based Compensation | Share-based compensation during the 13 weeks and 39 weeks ended September 29, 2024 and October 1, 2023 was recorded in the consolidated statements of operations within a separate line item as shown in the following table:
(1)
Relates to employment related taxes, including employer national insurance tax in the UK. These amounts were settled in cash and are not included in additional paid-in capital or as an adjustment to reconcile net loss to net cash used in operating activities in the consolidated statements of cash flows. |
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| Schedule of Assumptions Used in Applying Pricing Model | The weighted-average assumptions used in valuing SARs granted or modified during each period are set forth in the following table:
(1) The expected life assumption is based on the Company's expectation for the period before exercise. (2) The expected volatility assumption is developed using leverage-adjusted historical volatilities for public peer companies for the period equal to the expected life of the awards. (3) The risk-free rate is based on the bootstrap adjusted US Treasury Rate Yield Curve Rate as of the valuation date, term matched with expected life of the awards. (4)
The expected dividend yield is 0.0% since the Company does not expect to pay dividends. |
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Loss Per Share and Shareholders' Equity (Deficit) (Tables) |
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Sep. 29, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of changes in each class of the Company's common stock | The tables below present changes in each class of the Company’s common stock, as applicable:
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Segments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 29, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of disaggregated revenue | The following tables present disaggregated revenue for the 13 weeks and 39 weeks ended September 29, 2024 and October 1, 2023 and the key financial metrics reviewed by the CODM for the Company’s reportable segments:
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| Summary of reconciliation of reportable segment adjusted EBITDA to total consolidated segment revenue | The following tables present the reconciliation of reportable segment EBITDA to total consolidated segment revenue:
(1) Following the Company's impairment review, the Company recognized $14 million of impairment losses on long-lived assets (comprised of $11 million in respect of Operating lease assets and $3 million of Property and equipment, net), of which $14 million is in respect of Soho Works North America and less than $1 million relates to a UK restaurant site. .
(1) Following the Company's impairment review, the Company recognized $14 million of impairment losses on long-lived assets (comprised of $11 million in respect of Operating lease assets and $3 million of Property and equipment, net), of which $14 million is in respect of Soho Works North America and less than $1 million related to a UK restaurant site. (2) Other expenses, net include a $2 million expense related to professional service fees associated with the Company's shareholder activism response, a $2 million expense related to third party advisory expenses incurred by the Company's independent special committee in request of the evaluation of certain strategic transactions and a $6 million expense incurred with respect to a strategic reorganization program of the Company's operations and support teams. Further, the Company recognized $5 million of impairment losses on intangible assets related to the termination of two hotel management contracts.
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| Summary of long-lived asset information by geographic area | The following table presents long-lived asset information (which includes property and equipment, net, operating lease right-of-use assets and equity method investments) by geographic area as of September 29, 2024 and December 31, 2023. Asset information by segment is not reported internally or otherwise regularly reviewed by the CODM.
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Related Party Transactions and Balances (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 29, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of details amounts owed by (to) equity method investees due within one year are as follows | The amounts owed by (to) equity method investees due within one year are as follows:
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Revision of Prior Period Financial Statements (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 29, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Disclosure Text Block [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Consolidated Balance Sheets (Prior Periods) |
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| Consolidated Statements of Operations (Prior Periods) |
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| Consolidated Statement of Comprehensive Loss (Prior Periods) |
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| Consolidated Statement of Changes in Shareholders' Deficit (Prior Periods) |
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| Consolidated Statement of Cash Flows (Prior Periods) |
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Summary of Significant Accounting Policies- Additional Information (Detail) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 29, 2024 |
Jun. 30, 2024 |
Mar. 31, 2024 |
Oct. 01, 2023 |
Jul. 02, 2023 |
Apr. 02, 2023 |
Jun. 30, 2024 |
Jul. 02, 2023 |
Sep. 29, 2024 |
Oct. 01, 2023 |
Dec. 31, 2023 |
Jan. 01, 2023 |
|
| New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
| Net income (loss) | $ 718 | $ (30,205) | $ (41,858) | $ (48,433) | $ (2,176) | $ (17,369) | $ (71,345) | $ (67,978) | ||||
| Net cash provided by operating activities | 62,794 | 28,690 | ||||||||||
| Accumulated deficit | (1,447,815) | (1,447,815) | $ (1,376,532) | |||||||||
| Operating lease assets | 1,186,154 | 1,186,154 | 1,152,288 | |||||||||
| Non-cash impairment charge | 14,000 | |||||||||||
| Property and equipment, net | 629,982 | 629,982 | 621,388 | |||||||||
| Cash and cash equivalents at carrying value | 142,816 | 160,128 | 142,816 | 160,128 | 159,155 | |||||||
| Restricted cash | 3,805 | 500 | $ 3,805 | 500 | 1,951 | |||||||
| Cash flow forecast, period | 12 months | |||||||||||
| Impairment of Other Long-Lived Assets [Member] | ||||||||||||
| New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
| Operating lease assets | 11,000 | $ 11,000 | ||||||||||
| Property and equipment, net | 3,000 | 3,000 | ||||||||||
| Impairment of Intangible Assets | 14,000 | 0 | 0 | |||||||||
| Minimum [Member] | ||||||||||||
| New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
| Non-cash impairment charge | 1,000 | |||||||||||
| Previously Reported [Member] | ||||||||||||
| New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
| Net income (loss) | (34,175) | (46,339) | (41,450) | (2,287) | (16,016) | $ (80,514) | $ (18,303) | (59,753) | (117,088) | $ (219,780) | ||
| Net cash provided by operating activities | 7,488 | (12,488) | 44,992 | 8,281 | 63,000 | 30,476 | 49,812 | 14,682 | ||||
| Accumulated deficit | (1,448,000) | (1,440,274) | (1,406,405) | (1,303,370) | (1,261,008) | (1,258,364) | (1,440,274) | (1,261,008) | (1,448,000) | (1,303,370) | (1,360,365) | (1,242,412) |
| Operating lease assets | 1,177,175 | 1,147,753 | 1,131,435 | 1,123,060 | 1,118,819 | 1,177,175 | 1,123,060 | 1,131,435 | 1,150,165 | 1,085,579 | ||
| Property and equipment, net | 629,682 | 617,465 | 637,133 | 649,139 | 644,743 | 629,682 | 649,139 | 637,133 | 627,035 | 647,001 | ||
| Cash and cash equivalents at carrying value | 143,000 | 151,195 | 142,320 | 162,540 | 129,285 | 153,820 | 151,195 | 129,285 | 143,000 | 162,540 | 161,656 | 182,115 |
| Restricted cash | $ 4,000 | 3,190 | 2,236 | 500 | 48,108 | 8,400 | 3,190 | 48,108 | $ 4,000 | 500 | 1,951 | 7,928 |
| Revision of Prior Period, Adjustment [Member] | ||||||||||||
| New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
| Net income (loss) | 3,970 | 4,481 | (6,983) | 111 | (1,353) | 8,451 | (1,242) | (8,225) | (12,590) | (3,577) | ||
| Net cash provided by operating activities | (1,299) | (724) | (2,796) | (952) | (1,786) | (2,824) | (2,819) | |||||
| Accumulated deficit | (7,716) | (11,686) | (11,802) | (4,819) | (4,930) | (7,716) | (4,819) | (11,802) | (16,167) | (3,577) | ||
| Operating lease assets | 2,289 | 2,092 | 0 | 0 | 2,289 | 0 | 0 | 2,123 | 0 | |||
| Property and equipment, net | (5,280) | (5,432) | (2,076) | (1,449) | (1,512) | (5,280) | (1,449) | (2,076) | (5,647) | (1,342) | ||
| Cash and cash equivalents at carrying value | (2,727) | (2,555) | (2,412) | (2,278) | (1,985) | (2,727) | (2,278) | (2,412) | (2,501) | (1,435) | ||
| Restricted cash | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | |||||
Acquisitions - Additional Information (Detail) - USD ($) $ in Thousands |
9 Months Ended | ||
|---|---|---|---|
Sep. 29, 2024 |
Oct. 01, 2023 |
Dec. 31, 2023 |
|
| Business Acquisition [Line Items] | |||
| Cash and Cash Equivalents, at Carrying Value | $ 142,816 | $ 160,128 | $ 159,155 |
| Operating Lease, Right-of-Use Asset | 1,186,154 | 1,152,288 | |
| Operating lease right-of-use asset and associated lease liability | 71,691 | $ 79,631 | |
| Business combination, Recognized goodwill | $ 211,866 | $ 206,285 | |
Consolidated Variable Interest Entities - Additional Information (Detail) - Soho Works Limited [Member] |
9 Months Ended | |
|---|---|---|
Sep. 29, 2017 |
Sep. 29, 2024 |
|
| Consolidated Variable Interest Entities [Line Items] | ||
| Granted Option To Subscribe For Individuals | 30.00% | |
| Equity method investment, Ownership percentage | 100.00% | |
| Common stock shares voting rights | 50 | |
| Varible interest entity, Size of VIE | The Soho Works Limited (“SWL”) joint venture develops and operates Soho-branded, membership-based co-working spaces, with four sites currently in operation in the UK. | |
| Stock Option [Member] | ||
| Consolidated Variable Interest Entities [Line Items] | ||
| Equity method investment, Ownership percentage | 70.00% |
Equity Method Investments - Summary of the Company's Maximum Exposure to Losses Related to its Equity Method Investments (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
Sep. 29, 2024 |
Jun. 30, 2024 |
Mar. 31, 2024 |
Oct. 01, 2023 |
Jul. 02, 2023 |
Apr. 02, 2023 |
Sep. 29, 2024 |
Oct. 01, 2023 |
|||
| Shedule Of Equity Method Investment Summarized Statement Of Operations [Line Items] | ||||||||||
| Consolidated revenue | $ 333,368 | $ 293,387 | $ 898,259 | $ 835,149 | ||||||
| Operating income (loss) | 37,884 | (27,386) | 615 | (8,072) | ||||||
| Net income (loss) | 718 | $ (30,205) | $ (41,858) | (48,433) | $ (2,176) | $ (17,369) | (71,345) | (67,978) | ||
| Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | ||||||||||
| Shedule Of Equity Method Investment Summarized Statement Of Operations [Line Items] | ||||||||||
| Consolidated revenue | 15,031 | 14,180 | 41,367 | 39,657 | ||||||
| Operating income (loss) | 4,566 | 4,070 | 12,390 | 11,527 | ||||||
| Net income (loss) | [1] | $ 2,940 | $ 2,581 | $ 6,816 | $ 8,092 | |||||
| ||||||||||
Equity Method Investments - Additional Information (Detail) - USD ($) $ in Thousands |
9 Months Ended | |
|---|---|---|
Sep. 29, 2024 |
Oct. 01, 2023 |
|
| Business Acquisition [Line Items] | ||
| Equity method investment | $ 0 | |
| Payment of capital | (10,695) | $ (0) |
| Mimea XXI (Member) | ||
| Business Acquisition [Line Items] | ||
| Payment of capital | $ 11,000 | |
Leases - Summary of The Maturity of The Company's Operating and Finance Lease Liabilities (Detail) $ in Thousands |
Sep. 29, 2024
USD ($)
|
|---|---|
| Lessee, Operating Lease, Liability, to be Paid, Fiscal Year Maturity [Abstract] | |
| Remainder of 2024 | $ 39,735 |
| 2025 | 164,403 |
| 2026 | 166,833 |
| 2027 | 158,797 |
| 2028 | 156,725 |
| Thereafter | 1,806,882 |
| Total undiscounted lease payments | 2,493,375 |
| Present value adjustment | (1,087,506) |
| Total net lease liabilities | 1,405,869 |
| Remainder of 2024 | 1,593 |
| 2025 | 6,451 |
| 2026 | 6,449 |
| 2027 | 6,426 |
| 2028 | 6,380 |
| Thereafter | 233,115 |
| Total undiscounted lease payments | 260,414 |
| Present value adjustment | (178,156) |
| Total net lease liabilities | $ 82,258 |
Leases - Summary of The Supplemental Disclosure For The Statement of Cash Flows Related to Operating and Finance Leases (Detail) - USD ($) $ in Thousands |
9 Months Ended | |
|---|---|---|
Sep. 29, 2024 |
Oct. 01, 2023 |
|
| Cash paid for amounts included in the measurement of lease liabilities: | ||
| Operating cash flows from operating leases | $ (115,293) | $ (103,386) |
| Interest payments for finance leases | (4,196) | (4,159) |
| Cash flows from financing activities: | ||
| Principal payments for finance leases | (289) | (221) |
| Supplemental disclosures of non-cash investing and financing activities: | ||
| Operating lease assets obtained in exchange for new operating lease liabilities | 71,691 | 79,631 |
| Acquisitions of property and equipment under finance leases | $ 179 | $ 33 |
Leases - Summary of The Additional Information Related to Operating and Finance Leases (Detail) |
Sep. 29, 2024 |
Oct. 01, 2023 |
|---|---|---|
| Weighted-average remaining lease term | ||
| Finance leases | 41 years | 42 years |
| Operating leases | 16 years | 16 years |
| Weighted-average discount rate | ||
| Finance leases | 7.29% | 7.29% |
| Operating leases | 7.91% | 7.87% |
Leases - Summary of The Company's Estimated Future Undiscounted Lease Payments For Current Leases (Detail) $ in Thousands |
Sep. 29, 2024
USD ($)
|
|---|---|
| Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
| Remainder of 2024 | $ 0 |
| 2025 | 4,763 |
| 2026 | 9,322 |
| 2027 | 16,284 |
| 2028 | 41,620 |
| Thereafter | 992,323 |
| Total undiscounted lease payments for leases signed but not commenced net of lease incentives | $ 1,064,311 |
Revenue Recognition - Summary of Disaggregation of Revenue (Detail) $ in Thousands |
9 Months Ended |
|---|---|
|
Sep. 29, 2024
USD ($)
| |
| Disaggregation of Revenue [Line Items] | |
| Total future revenues | $ 103,267 |
| Future periods [Member] | |
| Disaggregation of Revenue [Line Items] | |
| Total future revenues | 28,460 |
| Revenue Recognized Over Time [Member] | |
| Disaggregation of Revenue [Line Items] | |
| Total future revenues | 103,267 |
| Revenue Recognized Over Time [Member] | Future periods [Member] | |
| Disaggregation of Revenue [Line Items] | |
| Total future revenues | $ 28,460 |
Revenue Recognition - Summary of Contract Receivables, Assets and Contract Liabilities (Details) - USD ($) $ in Thousands |
Sep. 29, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Revenue Recognition [Abstract] | ||
| Contract receivables | $ 72,530 | $ 58,089 |
| Contract assets | 3,290 | 3,778 |
| Contract liabilities | $ 164,406 | $ 156,252 |
Revenue Recognition - Additional Information (Detail) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
|---|---|---|---|---|---|
Sep. 29, 2024 |
Oct. 01, 2023 |
Sep. 29, 2024 |
Oct. 01, 2023 |
Dec. 31, 2023 |
|
| Revenue Recognition [Abstract] | |||||
| Revenue recognized, contract liability | $ 28 | $ 23 | $ 85 | $ 69 | |
| Other revenue | 5 | $ 7 | 15 | $ 16 | |
| Accounts receivable, net | $ 28 | $ 28 | $ 26 | ||
Inventories, Prepaid Expenses and Other Current Assets - Prepaid Expenses And Other Current Assets (Detail) - USD ($) $ in Thousands |
Sep. 29, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Prepaid Expense and Other Assets, Current [Abstract] | ||
| Amounts owed by equity method investees | $ 1,939 | $ 1,323 |
| Prepayments and accrued income | 63,629 | 35,510 |
| Contract assets | 3,290 | 3,778 |
| Other receivables | 46,669 | 52,682 |
| Inventory supplier advances | 13,312 | 18,656 |
| Total prepaid expenses and other current assets | $ 128,839 | $ 111,949 |
Inventories, Prepaid Expenses and Other Current Assets - Additional Information (Detail) - USD ($) $ in Millions |
Sep. 29, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Prepaid Expense and Other Assets, Current [Abstract] | ||
| Raw materials and service stock and supplies | $ 24 | $ 27 |
| Finished goods | 39 | 31 |
| Accrued Revenue | $ 1 | $ 2 |
Goodwill - Summary of Goodwill (Detail) - USD ($) $ in Thousands |
Sep. 29, 2024 |
Mar. 31, 2024 |
|---|---|---|
| Goodwill [Line Items] | ||
| Beginning balance | $ 206,285 | |
| Ending balance | $ 211,866 |
Accrued Liabilities - Schedule of Accrued Liabilities (Detail) - USD ($) $ in Thousands |
Sep. 29, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Accrued Liabilities [Abstract] | ||
| Accrued interest | $ 15,379 | $ 1,309 |
| Hotel deposits | 16,166 | 12,628 |
| Trade and other accruals | 93,502 | 72,377 |
| Total accrued liabilities | $ 125,047 | $ 86,314 |
Debt - Summary of Property Mortgage Loans, Net of Debt Issuance Costs (Parenthetical) (Detail) |
9 Months Ended | 12 Months Ended | |
|---|---|---|---|
Sep. 29, 2024 |
Dec. 31, 2023 |
Feb. 28, 2019 |
|
| Term Loam [Member] | |||
| Short-Term Debt [Line Items] | |||
| Interest rate | 6.99% | 6.99% | |
| Debt Instrument, Maturity Date | Jun. 01, 2033 | Jun. 01, 2033 | |
| Senior Notes [Member] | |||
| Short-Term Debt [Line Items] | |||
| Interest rate | 8.1764% | 8.1764% | |
| Debt Instrument, Maturity Date | Mar. 31, 2027 | Mar. 31, 2027 | |
| Mortgages [Member] | Subordinated Debt [Member] | |||
| Short-Term Debt [Line Items] | |||
| Interest rate | 7.25% | ||
| Unsecured Debt [Member] | |||
| Short-Term Debt [Line Items] | |||
| Interest rate | 7.00% | 7.00% | |
| Debt Instrument, Maturity Date | Sep. 30, 2025 | Sep. 30, 2025 | |
| Additional Notes [Member] | |||
| Short-Term Debt [Line Items] | |||
| Interest rate | 8.50% | 8.50% |
Debt - Additional Information (Details) $ in Thousands, € in Millions, £ in Millions |
3 Months Ended | 9 Months Ended | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 |
Dec. 31, 2017 |
Sep. 29, 2024
USD ($)
|
Oct. 01, 2023
USD ($)
|
Sep. 29, 2024
USD ($)
|
Oct. 01, 2023
USD ($)
|
Sep. 29, 2024
GBP (£)
|
Dec. 31, 2023
USD ($)
|
Dec. 31, 2023
GBP (£)
|
Mar. 31, 2021
USD ($)
|
Mar. 31, 2021
GBP (£)
|
Mar. 31, 2021
EUR (€)
|
Feb. 28, 2019
USD ($)
|
May 01, 2014
USD ($)
|
|
| Debt Instrument [Line Items] | ||||||||||||||
| Letter of guarantee | $ 6,000 | $ 6,000 | £ 4 | |||||||||||
| Interest Expense, Nonoperating | 20,658 | $ 18,799 | $ 61,846 | $ 59,527 | ||||||||||
| Revolving credit facility maturity date extend description | On November 10, 2022, Soho House Bond Limited, a wholly-owned subsidiary of the Company entered into the Third Amended and Restated Revolving Facility Agreement (the "Third Amendment") which further amends and restates the Revolving Credit Facility, originally entered into by the Company on December 5, 2019 (the original and amended facility refer to as the “Revolving Credit Facility”). The Third Amendment amends the Revolving Credit Facility to extend the maturity date from January 25, 2024 to July 25, 2026. In addition, the Third Amendment provides that from March 2023 we are required to maintain certain leverage covenants (as defined in the Revolving Credit Facility) which are applicable when 40% or more of the facility is drawn. As of September 29, 2024, the facility remains undrawn with £71 million ($95 million) available to draw under this facility and £4 million ($6 million) utilized as a letter of guarantee in respect of one of the Company’s lease agreements. The facility is secured on a fixed and floating charge basis over certain assets of the Company. The Company incurred interest expense of less than $1 million and less than $1 million in respect of the Revolving Credit Facility during the 13 weeks ended September 29, 2024 and October 1, 2023, respectively, and $1 million and $1 million during the 39 weeks ended September 29, 2024 and October 1, 2023, respectively. | |||||||||||||
| Gain (Loss) on Extinguishment of Debt, before Write off of Debt Issuance Cost | $ 0 | (3,278) | ||||||||||||
| Senior secured notes | $ 295,000 | € 62 | ||||||||||||
| Existing term loan and mezzanine loan | $ 140,000 | |||||||||||||
| Long-term Debt | 694,825 | 694,825 | $ 664,866 | |||||||||||
| Soho Works Limited [Member] | Related Party Loans [Member] | ||||||||||||||
| Debt Instrument [Line Items] | ||||||||||||||
| Interest Expense, Operating and Nonoperating | 1,000 | 1,000 | 2,000 | 2,000 | ||||||||||
| Carrying amount of the term loan | 29,000 | 29,000 | £ 22 | $ 28,000 | £ 22 | |||||||||
| Term Loan [Member] | ||||||||||||||
| Debt Instrument [Line Items] | ||||||||||||||
| Interest Expense, Operating and Nonoperating | $ 2,000 | $ 7,000 | ||||||||||||
| Interest rate | 6.99% | 6.99% | 6.99% | |||||||||||
| Fixed rate borrowings [Member] | ||||||||||||||
| Debt Instrument [Line Items] | ||||||||||||||
| Weighted-average interest rate | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | |||||||||
| Floating Rate borrowings [Member] | ||||||||||||||
| Debt Instrument [Line Items] | ||||||||||||||
| Weighted-average interest rate | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | |||||||||
| Mortgages [Member] | ||||||||||||||
| Debt Instrument [Line Items] | ||||||||||||||
| Interest Expense, Operating and Nonoperating | $ 2,000 | 2,000 | $ 7,000 | 6,000 | ||||||||||
| Property Mortgage Loans | 137,313 | 137,313 | $ 137,099 | |||||||||||
| Mortgages [Member] | Soho Works Limited [Member] | ||||||||||||||
| Debt Instrument [Line Items] | ||||||||||||||
| Debt Instrument, Maturity Date | Sep. 29, 2025 | |||||||||||||
| Interest rate | 7.00% | |||||||||||||
| Mortgages [Member] | Term Loan [Member] | ||||||||||||||
| Debt Instrument [Line Items] | ||||||||||||||
| Interest rate | 5.34% | |||||||||||||
| Property Mortgage Loans | $ 55,000 | |||||||||||||
| Mortgages [Member] | Subordinated Debt [Member] | ||||||||||||||
| Debt Instrument [Line Items] | ||||||||||||||
| Interest rate | 7.25% | |||||||||||||
| Property Mortgage Loans | $ 62,000 | |||||||||||||
| Revolving Credit Facility [Member] | ||||||||||||||
| Debt Instrument [Line Items] | ||||||||||||||
| Line of Credit Facility, Remaining Borrowing Capacity | 95,000 | 95,000 | £ 71 | |||||||||||
| Interest Expense, Operating and Nonoperating | $ 1,000 | 1,000 | $ 1,000 | 1,000 | ||||||||||
| Greek Street Loan [Member] | ||||||||||||||
| Debt Instrument [Line Items] | ||||||||||||||
| Debt Instrument, Maturity Date | Jan. 31, 2028 | |||||||||||||
| Interest rate | 7.50% | 7.50% | 7.50% | |||||||||||
| Debt Instrument, Face Amount | $ 2,563 | $ 2,563 | ||||||||||||
| Secured Debt [Member] | Affiliated Entity [Member] | ||||||||||||||
| Debt Instrument [Line Items] | ||||||||||||||
| Senior secured notes | 73,000 | £ 53 | ||||||||||||
| Secured Debt [Member] | Advised loans [Member] | ||||||||||||||
| Debt Instrument [Line Items] | ||||||||||||||
| Senior secured notes | 73,000 | |||||||||||||
| Secured Debt [Member] | Soho House Hong Kong Loan [Member] | ||||||||||||||
| Debt Instrument [Line Items] | ||||||||||||||
| Debt Instrument, Maturity Date | Mar. 31, 2027 | |||||||||||||
| Interest Expense, Operating and Nonoperating | $ 14,000 | $ 13,000 | $ 41,000 | $ 38,000 | ||||||||||
| Secured Debt [Member] | Soho House Hong Kong Loan [Member] | Initial Notes [Member] | ||||||||||||||
| Debt Instrument [Line Items] | ||||||||||||||
| Interest rate | 2.0192% | |||||||||||||
| Debt instrument basis rate | 6.1572% | |||||||||||||
| Secured Debt [Member] | Soho House Hong Kong Loan [Member] | Additional Notes [Member] | ||||||||||||||
| Debt Instrument [Line Items] | ||||||||||||||
| Interest rate | 2.125% | |||||||||||||
| Senior secured notes | $ 100,000 | |||||||||||||
| Debt instrument basis rate | 6.375% | |||||||||||||
Debt - Summary Of Future Principal Payments For The Company's Debt, Property Mortgage Loans, and Related Party Loans (Detail) $ in Thousands |
Sep. 29, 2024
USD ($)
|
|---|---|
| Debt Instruments [Abstract] | |
| Remainder of 2024 | $ 1,096 |
| 2025 | 36,637 |
| 2026 | 1,614 |
| 2027 | 651,043 |
| 2028 | 844 |
| Thereafter | 149,430 |
| Total | $ 840,664 |
Fair Value Measurements - Summary of Estimated Fair Values of the Company's Debt Instruments (Detail) - Level 3 [Member] - USD ($) $ in Thousands |
Sep. 29, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
| Carrying Value | $ 803,021 | $ 774,250 |
| Fair Value | 769,308 | 735,630 |
| Senior Secured Notes [Member] | ||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
| Carrying Value | 643,668 | 615,718 |
| Fair Value | 628,714 | 597,063 |
| Property Mortgage Loans [Member] | ||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
| Carrying Value | 137,313 | 137,099 |
| Fair Value | 118,663 | 117,488 |
| Other Loans [Member] | ||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
| Carrying Value | 22,040 | 21,433 |
| Fair Value | $ 21,931 | $ 21,079 |
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Thousands |
Sep. 29, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
| Fair value, assets and liabilities measured on recurring and nonrecurring basis | $ 0 | $ 0 |
Share-Based Compensation - Summary of Assumptions Used in Applying Pricing Model (Details) - Restricted Stock [Member] |
9 Months Ended | 12 Months Ended | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
Sep. 29, 2024 |
Dec. 31, 2023 |
|||||||||
| Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
| Expected volatility | [1] | 76.00% | ||||||||
| Expected Volatility Rate, Minimum | [1] | 55.00% | ||||||||
| Expected Volatility Rate, Maximum | [1] | 59.00% | ||||||||
| Risk Free Interest Rate, Minimum | [2] | 4.17% | 3.54% | |||||||
| Risk Free Interest Rate, Maximum | [2] | 4.29% | 5.01% | |||||||
| Expected dividend yield | [3] | 0.00% | 0.00% | |||||||
| Maximum [Member] | ||||||||||
| Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
| Expected average life | [4] | 4 years 9 months 21 days | 5 years 6 months 21 days | |||||||
| Minimum [Member] | ||||||||||
| Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
| Expected average life | [4] | 3 years 2 months 15 days | 1 year 8 months 12 days | |||||||
| ||||||||||
Share-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands |
1 Months Ended | 3 Months Ended | 9 Months Ended | |||
|---|---|---|---|---|---|---|
Jul. 31, 2021 |
Sep. 29, 2024 |
Oct. 01, 2023 |
Sep. 29, 2024 |
Oct. 01, 2023 |
Dec. 31, 2023 |
|
| Share Based Compensation [Line Items] | ||||||
| Share-based compensation expense | $ 3,513 | $ 4,683 | $ 15,150 | $ 16,186 | ||
| 2021 Equity And Incentive Plan [Member] | ||||||
| Share Based Compensation [Line Items] | ||||||
| Number of Restricted stock unit award, Grants | 12,107,333 | |||||
| Award grants | 12,107,333 | |||||
| Common stock reserved for future issuance | 2,276,725 | 2,276,725 | ||||
| Stock Appreciation Rights (SARs) [Member] | ||||||
| Share Based Compensation [Line Items] | ||||||
| Share-based compensation expense | $ 619 | 1,331 | $ 1,943 | 6,798 | ||
| Modified Excercise Prices | $ 6.05 | |||||
| Stock Appreciation Rights (SARs) [Member] | 2020 Equity And Incentive Plan [Member] | ||||||
| Share Based Compensation [Line Items] | ||||||
| Share-based payment nonvested award, cost not yet recognized | $ 1,000 | $ 1,000 | ||||
| Stock Appreciation Rights (SARs) [Member] | 2021 Equity And Incentive Plan [Member] | ||||||
| Share Based Compensation [Line Items] | ||||||
| Share-based compensation options outstanding number | 6,177,985 | 6,177,985 | 6,498,915 | |||
| Growth Shares [Member] | ||||||
| Share Based Compensation [Line Items] | ||||||
| Share-based compensation expense | $ 0 | 237 | $ 0 | 1,101 | ||
| Restricted Stock Units (RSUs) [Member] | ||||||
| Share Based Compensation [Line Items] | ||||||
| Share-based compensation expense | $ 1,969 | 1,762 | $ 10,439 | 6,489 | ||
| Restricted Stock Units (RSUs) [Member] | 2020 Equity And Incentive Plan [Member] | Soho House Holdings Limited [Member] | ||||||
| Share Based Compensation [Line Items] | ||||||
| Share-based compensation options outstanding number | 0 | 0 | 0 | |||
| Restricted Stock Units (RSUs) [Member] | 2021 Equity And Incentive Plan [Member] | ||||||
| Share Based Compensation [Line Items] | ||||||
| Number of Restricted stock unit award, Grants | 904,916 | |||||
| Award grants | 904,916 | |||||
| Restricted Stock Units (RSUs) [Member] | 2021 Equity And Incentive Plan [Member] | Soho House Holdings Limited [Member] | ||||||
| Share Based Compensation [Line Items] | ||||||
| Share-based compensation options outstanding number | 1,316,961 | 1,316,961 | 2,327,384 | |||
| Restricted Stock Units And Performance Stock Units [Member] | 2020 Equity And Incentive Plan [Member] | ||||||
| Share Based Compensation [Line Items] | ||||||
| Share-based payment nonvested award cost not yet recognized, period for recognition | 5 months 12 days | |||||
| Restricted Stock Units And Performance Stock Units [Member] | 2021 Equity And Incentive Plan [Member] | ||||||
| Share Based Compensation [Line Items] | ||||||
| Share-based payment nonvested award, cost not yet recognized | $ 8,000 | $ 8,000 | ||||
| Share-based payment nonvested award cost not yet recognized, period for recognition | 1 year 10 days | |||||
| Performance Shares [Member] | ||||||
| Share Based Compensation [Line Items] | ||||||
| Share-based compensation expense | $ 527 | 0 | $ 1,541 | 0 | ||
| Performance Shares [Member] | 2021 Equity And Incentive Plan [Member] | ||||||
| Share Based Compensation [Line Items] | ||||||
| Number of Restricted stock unit award, Grants | 630,158 | |||||
| Share-based compensation options outstanding number | 617,486 | 617,486 | 0 | |||
| Award grants | 630,158 | |||||
| Type III modification | ||||||
| Share Based Compensation [Line Items] | ||||||
| Share-based compensation expense | $ 0 | $ 766 | $ 0 | $ 766 | ||
| Type I modifications [Member] | ||||||
| Share Based Compensation [Line Items] | ||||||
| Modifiction Fair Value | $ 200 | |||||
Loss Per Share and Shareholders' Equity (Deficit) - Schedule of Changes in each Class of Redeemable Preferred Shares, Ordinary Shares and Common Stock (Details) - MCG Common Stock [Member] - shares |
3 Months Ended | |||||
|---|---|---|---|---|---|---|
Sep. 29, 2024 |
Jun. 30, 2024 |
Mar. 31, 2024 |
Oct. 01, 2023 |
Jul. 02, 2023 |
Apr. 02, 2023 |
|
| Class A Common Stock [Member] | ||||||
| Beginning Balance, Shares | 54,197,300 | 54,805,785 | 53,741,731 | 54,427,510 | 54,090,946 | 53,722,597 |
| Shares issued related to share-based compensation | 631,350 | 282,560 | 1,064,054 | 809,948 | 336,564 | 368,349 |
| Shares repurchased | (2,269,130) | (891,045) | (2,000,000) | |||
| Ending Balance, Shares | 52,559,520 | 54,197,300 | 54,805,785 | 53,237,458 | 54,427,510 | 54,090,946 |
| Class B Common Stock [Member] | ||||||
| Beginning Balance, Shares | 141,500,385 | 141,500,385 | 141,500,385 | 141,500,385 | 141,500,385 | 141,500,385 |
| Shares issued related to share-based compensation | 0 | 0 | 0 | 0 | 0 | 0 |
| Shares repurchased | 0 | 0 | 0 | |||
| Ending Balance, Shares | 141,500,385 | 141,500,385 | 141,500,385 | 141,500,385 | 141,500,385 | 141,500,385 |
Loss Per Share and Shareholders' Equity (Deficit) - Additional Information (Detail) - USD ($) $ in Millions |
1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
|---|---|---|---|---|---|---|---|
Sep. 20, 2023 |
Mar. 18, 2022 |
Sep. 30, 2023 |
Sep. 29, 2024 |
Sep. 29, 2024 |
Dec. 31, 2022 |
Feb. 09, 2024 |
|
| Class of Stock [Line Items] | |||||||
| Share repurchase, value | $ 50 | ||||||
| Share repurchased amount | $ 50 | ||||||
| Common Class A [Member] | |||||||
| Class of Stock [Line Items] | |||||||
| Common stock shares voting rights | one vote | ||||||
| Common stock conversion basis | one-for-one basis | ||||||
| Stock repurchase program | $ 50 | ||||||
| Share repurchase, shares | 2,000,000 | 2,269,130 | 3,160,175 | ||||
| Share repurchase, value | $ 12 | $ 13 | $ 17 | ||||
| Common Class B [Member] | |||||||
| Class of Stock [Line Items] | |||||||
| Common stock shares voting rights | 10 votes | ||||||
| Common stock conversion basis | one-for-one basis | ||||||
| Nick Jones [Member] | Common Class A [Member] | |||||||
| Class of Stock [Line Items] | |||||||
| Share repurchase, shares | 2,000,000 | ||||||
| Share repurchase, value | $ 12 |
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 29, 2024 |
Oct. 01, 2023 |
Sep. 29, 2024 |
Oct. 01, 2023 |
|
| Income Tax Contingency [Line Items] | ||||
| Effective tax rate | 96.17% | (9.52%) | (23.76%) | (8.61%) |
| Effective Income tax rate reconciliation, foreign income tax rate differential, percent | 21.00% | 21.00% | ||
| Gross unrecognized tax benefits | $ 8 | $ 8 | ||
| Global Minimum Tax Rate | 15.00% | |||
Segments - Summary of Disaggregated Revenue (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 29, 2024 |
Oct. 01, 2023 |
Sep. 29, 2024 |
Oct. 01, 2023 |
|
| Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
| Consolidated revenue | $ 333,368 | $ 293,387 | $ 898,259 | $ 835,149 |
| Total segment revenue | 348,399 | 307,567 | 939,626 | 874,806 |
| The Americas | ||||
| Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
| Consolidated revenue | 113,668 | 102,663 | 347,388 | 322,533 |
| Total segment revenue | 117,189 | 106,196 | 358,630 | 334,013 |
| UK | ||||
| Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
| Consolidated revenue | 100,266 | 91,319 | 274,262 | 259,082 |
| Total segment revenue | 102,554 | 93,478 | 280,100 | 264,836 |
| Europe & RoW | ||||
| Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
| Consolidated revenue | 81,161 | 65,681 | 164,429 | 146,877 |
| Total segment revenue | 90,383 | 74,169 | 188,716 | 169,300 |
| Reportable Segment | ||||
| Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
| Consolidated revenue | 295,095 | 259,663 | 786,079 | 728,492 |
| Total segment revenue | 310,126 | 273,843 | 827,446 | 768,149 |
| All Other | ||||
| Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
| Consolidated revenue | 38,273 | 33,724 | 112,180 | 106,657 |
| Total segment revenue | 38,273 | 33,724 | 112,180 | 106,657 |
| Membership revenues | ||||
| Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
| Total segment revenue | 110,957 | 95,303 | 319,011 | 271,528 |
| Membership revenues | The Americas | ||||
| Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
| Total segment revenue | 52,664 | 45,195 | 151,280 | 130,548 |
| Membership revenues | UK | ||||
| Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
| Total segment revenue | 31,822 | 27,115 | 90,843 | 76,298 |
| Membership revenues | Europe & RoW | ||||
| Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
| Total segment revenue | 13,747 | 12,019 | 39,725 | 33,527 |
| Membership revenues | Reportable Segment | ||||
| Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
| Total segment revenue | 98,233 | 84,329 | 281,848 | 240,373 |
| Membership revenues | All Other | ||||
| Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
| Total segment revenue | 12,724 | 10,974 | 37,163 | 31,155 |
| In-House revenues | ||||
| Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
| Total segment revenue | 128,822 | 123,015 | 378,977 | 377,139 |
| In-House revenues | The Americas | ||||
| Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
| Total segment revenue | 47,576 | 44,779 | 152,264 | 148,264 |
| In-House revenues | UK | ||||
| Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
| Total segment revenue | 48,287 | 45,539 | 136,649 | 135,137 |
| In-House revenues | Europe & RoW | ||||
| Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
| Total segment revenue | 32,959 | 32,697 | 90,064 | 93,738 |
| In-House revenues | Reportable Segment | ||||
| Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
| Total segment revenue | 128,822 | 123,015 | 378,977 | 377,139 |
| In-House revenues | All Other | ||||
| Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
| Total segment revenue | 0 | 0 | 0 | 0 |
| Other revenues | ||||
| Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
| Total segment revenue | 108,620 | 89,249 | 241,638 | 226,139 |
| Other revenues | The Americas | ||||
| Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
| Total segment revenue | 16,949 | 16,222 | 55,086 | 55,201 |
| Other revenues | UK | ||||
| Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
| Total segment revenue | 22,445 | 20,824 | 52,608 | 53,401 |
| Other revenues | Europe & RoW | ||||
| Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
| Total segment revenue | 43,677 | 29,453 | 58,927 | 42,035 |
| Other revenues | Reportable Segment | ||||
| Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
| Total segment revenue | 83,071 | 66,499 | 166,621 | 150,637 |
| Other revenues | All Other | ||||
| Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
| Total segment revenue | 25,549 | 22,750 | 75,017 | 75,502 |
| Elimination of equity accounted revenue | ||||
| Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
| Consolidated revenue | (15,031) | (14,180) | (41,367) | (39,657) |
| Elimination of equity accounted revenue | The Americas | ||||
| Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
| Consolidated revenue | (3,521) | (3,533) | (11,242) | (11,480) |
| Elimination of equity accounted revenue | UK | ||||
| Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
| Consolidated revenue | (2,288) | (2,159) | (5,838) | (5,754) |
| Elimination of equity accounted revenue | Europe & RoW | ||||
| Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
| Consolidated revenue | (9,222) | (8,488) | (24,287) | (22,423) |
| Elimination of equity accounted revenue | Reportable Segment | ||||
| Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
| Consolidated revenue | (15,031) | (14,180) | (41,367) | (39,657) |
| Elimination of equity accounted revenue | All Other | ||||
| Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
| Consolidated revenue | $ 0 | $ 0 | $ 0 | $ 0 |
Segments - Summary of Reconciliation of Reportable Segment Adjusted EBITDA to Total Consolidated Segment Revenue (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 29, 2024 |
Jun. 30, 2024 |
Mar. 31, 2024 |
Oct. 01, 2023 |
Jul. 02, 2023 |
Apr. 02, 2023 |
Sep. 29, 2024 |
Oct. 01, 2023 |
|||||||||
| Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||||||
| Total consolidated segment revenue | $ 333,368 | $ 293,387 | $ 898,259 | $ 835,149 | ||||||||||||
| Total segment operating expenses | (275,849) | (241,901) | (761,221) | (707,993) | ||||||||||||
| Share of equity method investments adjusted EBITDA | 2,367 | 2,557 | 6,918 | 7,265 | ||||||||||||
| Reportable segments EBITDA | 59,886 | 54,043 | 143,956 | 134,421 | ||||||||||||
| Unallocated corporate overhead | (13,704) | (13,746) | (34,384) | (32,290) | ||||||||||||
| Consolidated segmental EBITDA | 46,182 | 40,297 | 109,572 | 102,131 | ||||||||||||
| Depreciation and amortization | (26,017) | (24,503) | (76,642) | (74,162) | ||||||||||||
| Interest expense, net | (20,658) | (18,799) | (61,846) | (59,527) | ||||||||||||
| Income tax (expense) benefit | (18,026) | (4,208) | (13,697) | (5,386) | ||||||||||||
| Gain (loss) on sale of property and other, net | (236) | 7 | (62) | 596 | ||||||||||||
| Share of income of equity method investments | 1,754 | 1,953 | 3,645 | 4,411 | ||||||||||||
| Foreign exchange gain (loss), net | 39,591 | (30,698) | 28,937 | 3,899 | ||||||||||||
| Pre-opening expenses | (2,561) | (5,094) | (13,958) | (14,369) | ||||||||||||
| Non-cash rent | 3,261 | 149 | 1,376 | (1,834) | ||||||||||||
| Deferred registration fees, net | 467 | 465 | 1,399 | 1,391 | ||||||||||||
| Share of equity method investments adjusted EBITDA | (2,367) | (2,557) | (6,918) | (7,265) | ||||||||||||
| Share-based compensation expense | (3,513) | (4,683) | (15,150) | (16,186) | ||||||||||||
| Loss on impairment of long-lived assets | (14,068) | [1] | (14,068) | [2] | ||||||||||||
| Other expenses, net | (3,091) | (762) | (13,933) | [3] | (1,677) | |||||||||||
| Net income (loss) | 718 | $ (30,205) | $ (41,858) | (48,433) | $ (2,176) | $ (17,369) | (71,345) | (67,978) | ||||||||
| The Americas | ||||||||||||||||
| Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||||||
| Total consolidated segment revenue | 113,668 | 102,663 | 347,388 | 322,533 | ||||||||||||
| Total segment operating expenses | (98,782) | (75,756) | (290,860) | (250,477) | ||||||||||||
| Share of equity method investments adjusted EBITDA | 723 | 697 | 2,115 | 2,202 | ||||||||||||
| Reportable segments EBITDA | 15,609 | 27,604 | 58,643 | 74,258 | ||||||||||||
| UK | ||||||||||||||||
| Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||||||
| Total consolidated segment revenue | 100,266 | 91,319 | 274,262 | 259,082 | ||||||||||||
| Total segment operating expenses | (67,888) | (78,263) | (191,280) | (212,047) | ||||||||||||
| Share of equity method investments adjusted EBITDA | 415 | 450 | 833 | 928 | ||||||||||||
| Reportable segments EBITDA | 32,793 | 13,506 | 83,815 | 47,963 | ||||||||||||
| Europe & RoW | ||||||||||||||||
| Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||||||
| Total consolidated segment revenue | 81,161 | 65,681 | 164,429 | 146,877 | ||||||||||||
| Total segment operating expenses | (66,426) | (49,560) | (154,421) | (125,880) | ||||||||||||
| Share of equity method investments adjusted EBITDA | 1,229 | 1,410 | 3,970 | 4,135 | ||||||||||||
| Reportable segments EBITDA | 15,964 | 17,531 | 13,978 | 25,132 | ||||||||||||
| Reportable Segment | ||||||||||||||||
| Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||||||
| Total consolidated segment revenue | 295,095 | 259,663 | 786,079 | 728,492 | ||||||||||||
| Total segment operating expenses | (233,096) | (203,579) | (636,561) | (588,404) | ||||||||||||
| Share of equity method investments adjusted EBITDA | 2,367 | 2,557 | 6,918 | 7,265 | ||||||||||||
| Reportable segments EBITDA | 64,366 | 58,641 | 156,436 | 147,353 | ||||||||||||
| All Other | ||||||||||||||||
| Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||||||
| Total consolidated segment revenue | 38,273 | 33,724 | 112,180 | 106,657 | ||||||||||||
| Total segment operating expenses | (42,753) | (38,322) | (124,660) | (119,589) | ||||||||||||
| Share of equity method investments adjusted EBITDA | 0 | 0 | 0 | 0 | ||||||||||||
| Reportable segments EBITDA | $ (4,480) | $ (4,598) | $ (12,480) | $ (12,932) | ||||||||||||
| ||||||||||||||||
Segments - Summary of Reconciliation of Reportable Segment Adjusted EBITDA to Total Consolidated Segment Revenue (Parenthetical) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 29, 2024 |
Oct. 01, 2023 |
Sep. 29, 2024 |
Oct. 01, 2023 |
|||||||||
| Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||
| Other expenses, net | $ (3,091) | $ (762) | $ (13,933) | [1] | $ (1,677) | |||||||
| Operating Lease, Impairment Loss | 14,068 | [2] | 14,068 | [3] | ||||||||
| Soho Works North America [Member] | ||||||||||||
| Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||
| Operating Lease, Impairment Loss | 14,000 | 14,000 | ||||||||||
| Minimum [Member] | UK | ||||||||||||
| Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||
| Operating Lease, Impairment Loss | 1,000 | 1,000 | ||||||||||
| Property, Plant and Equipment [Member] | ||||||||||||
| Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||
| Operating Lease, Impairment Loss | 3,000 | 3,000 | ||||||||||
| Operating Lease Assets (Member) | ||||||||||||
| Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||
| Operating Lease, Impairment Loss | $ 11,000 | 11,000 | ||||||||||
| Professional Service Fees [Member] | ||||||||||||
| Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||
| Other expenses, net | 2,000 | |||||||||||
| Strategic Reorganization Program [Member] | ||||||||||||
| Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||
| Other expenses, net | 6,000 | |||||||||||
| Third Party Advisory Expenses [Member] | ||||||||||||
| Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||
| Other expenses, net | $ 2,000 | |||||||||||
| ||||||||||||
Segments - Summary of Long-lived Asset Information By Geographic Area (Detail) - USD ($) $ in Thousands |
Sep. 29, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Segment Reporting Information [Line Items] | ||
| Long-lived assets by geography | $ 1,830,347 | $ 1,795,371 |
| The Americas | ||
| Segment Reporting Information [Line Items] | ||
| Long-lived assets by geography | 893,429 | 873,547 |
| United Kingdom | ||
| Segment Reporting Information [Line Items] | ||
| Long-lived assets by geography | 591,016 | 556,628 |
| Europe | ||
| Segment Reporting Information [Line Items] | ||
| Long-lived assets by geography | 307,411 | 317,502 |
| Asia | ||
| Segment Reporting Information [Line Items] | ||
| Long-lived assets by geography | $ 38,491 | $ 47,694 |
Related Party Transactions and Balances - Additional Information (Detail) - USD ($) $ in Thousands |
1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 01, 2021 |
May 03, 2019 |
Apr. 19, 2019 |
Sep. 30, 2023 |
Sep. 29, 2024 |
Oct. 01, 2023 |
Jun. 30, 2024 |
Sep. 29, 2024 |
Oct. 01, 2023 |
Dec. 31, 2022 |
Sep. 30, 2024 |
Dec. 31, 2023 |
|
| Related Party Transaction [Line Items] | ||||||||||||
| Operating Lease, Right-of-Use Asset | $ 1,186,154 | $ 1,186,154 | $ 1,152,288 | |||||||||
| Operating Lease, Liability | 1,405,869 | 1,405,869 | ||||||||||
| Operating Leases, Rent Expense | $ 1,000 | |||||||||||
| Accounts receivable | 72,530 | 72,530 | 58,089 | |||||||||
| In House Operating Expenses | 158,790 | 147,231 | 474,240 | $ 444,658 | ||||||||
| Payable balance | 78,757 | 78,757 | 70,316 | |||||||||
| Revenues | 333,368 | 293,387 | 898,259 | 835,149 | ||||||||
| Prepaid expenses and other current assets | 128,839 | 128,839 | 111,949 | |||||||||
| Share repurchase, value | $ 50,000 | |||||||||||
| Current assets | 411,824 | 411,824 | 388,740 | |||||||||
| Sites Trading More Than One Year [Member] | ||||||||||||
| Related Party Transaction [Line Items] | ||||||||||||
| Short term lease liability | 56,965 | 56,965 | 49,436 | |||||||||
| Operating lease right-of-use liabilities | 1,268,632 | 1,268,632 | 1,234,140 | |||||||||
| Sites Trading Less Than One Year [Member] | ||||||||||||
| Related Party Transaction [Line Items] | ||||||||||||
| Short term lease liability | 271 | 271 | 1,721 | |||||||||
| Operating lease right-of-use liabilities | $ 80,001 | $ 80,001 | 68,762 | |||||||||
| Maximum [Member] | ||||||||||||
| Related Party Transaction [Line Items] | ||||||||||||
| Operating leases, renewal term | 10 years | 10 years | ||||||||||
| Operating leases, term of contract | 30 years | 30 years | ||||||||||
| Minimum [Member] | ||||||||||||
| Related Party Transaction [Line Items] | ||||||||||||
| Operating leases, renewal term | 5 years | 5 years | ||||||||||
| Operating leases, term of contract | 1 year | 1 year | ||||||||||
| Common Class A [Member] | ||||||||||||
| Related Party Transaction [Line Items] | ||||||||||||
| Share repurchase, shares | 2,000,000 | 2,269,130 | 3,160,175 | |||||||||
| Share repurchase, value | $ 12,000 | $ 13,000 | $ 17,000 | |||||||||
| Soho House [Member] | ||||||||||||
| Related Party Transaction [Line Items] | ||||||||||||
| Revenue Recogniation Cost Reimbursements Fee Recevables | 1,000 | 2,000 | 3,000 | 4,000 | ||||||||
| Related Party [Member] | ||||||||||||
| Related Party Transaction [Line Items] | ||||||||||||
| Operating Lease, Right-of-Use Asset | 98,000 | 98,000 | 194,000 | |||||||||
| Short term lease liability | 3,000 | 3,000 | 5,000 | |||||||||
| Operating lease right-of-use liabilities | 108,000 | 108,000 | 226,000 | |||||||||
| Revenues | 5,000 | 7,000 | 15,000 | 16,000 | ||||||||
| Current assets | 28,000 | 28,000 | 28,000 | |||||||||
| Related Party [Member] | Other Current Assets [Member] | ||||||||||||
| Related Party Transaction [Line Items] | ||||||||||||
| Accounts receivable | 28,000 | 28,000 | 26,000 | |||||||||
| Prepaid expenses and other current assets | 1,000 | 1,000 | 2,000 | |||||||||
| Related Party [Member] | Other Current Liabilities [Member] | ||||||||||||
| Related Party Transaction [Line Items] | ||||||||||||
| Payable balance | 5,000 | 5,000 | 6,000 | |||||||||
| Related Party [Member] | Operating Expense [Member] | ||||||||||||
| Related Party Transaction [Line Items] | ||||||||||||
| In House Operating Expenses | 3,000 | 6,000 | 14,000 | 18,000 | ||||||||
| Related Party [Member] | Sites Trading More Than One Year [Member] | ||||||||||||
| Related Party Transaction [Line Items] | ||||||||||||
| Short term lease liability | 3,000 | 3,000 | 5,000 | |||||||||
| Design Service Management Agreements with Related Parties [Member] | Sites Trading More Than One Year [Member] | ||||||||||||
| Related Party Transaction [Line Items] | ||||||||||||
| Short term lease liability | 108,000 | $ 108,000 | 226,000 | |||||||||
| The Yucaipa Companies LLC [Member] | Soho House [Member] | ||||||||||||
| Related Party Transaction [Line Items] | ||||||||||||
| Lease Expiration Date | Mar. 31, 2030 | |||||||||||
| Operating Lease, Right-of-Use Asset | 7,000 | $ 7,000 | 16,000 | |||||||||
| Operating lease right-of-use liabilities | 8,000 | 8,000 | 21,000 | |||||||||
| Rent expense associated with lease | 1,000 | 1,000 | $ 2,000 | 2,000 | ||||||||
| Variable Lease Payment, Terms and Conditions | 15 years | |||||||||||
| Lessor, Operating Lease, Variable Lease Payment, Terms and Conditions | 15 years | |||||||||||
| Soho House Stockholm [Member] | Soho House [Member] | ||||||||||||
| Related Party Transaction [Line Items] | ||||||||||||
| Operating Lease, Right-of-Use Asset | 29,000 | |||||||||||
| Operating lease right-of-use liabilities | 30,000 | |||||||||||
| Rent expense associated with lease | 1,000 | 2,000 | ||||||||||
| Ned-Soho House, LLP | Soho House [Member] | ||||||||||||
| Related Party Transaction [Line Items] | ||||||||||||
| Accounts receivable | 2,000 | $ 2,000 | 2,000 | |||||||||
| Recogniation Cost Reimbursements Fee Recevable | 3,000 | 3,000 | 3,000 | |||||||||
| Development and mamangement fee payable | 3,000 | 3,000 | 2,000 | |||||||||
| Accounts payables | 1,000 | 1,000 | 1,000 | |||||||||
| Revenue Recognized From The Retail Related Services | 1,000 | 1,000 | 1,000 | 1,000 | ||||||||
| Ned Doha [Member] | ||||||||||||
| Related Party Transaction [Line Items] | ||||||||||||
| Account receivables, net | 3,000 | 3,000 | 2,000 | |||||||||
| Management Fee Income | 1,000 | 1,000 | 2,000 | 2,000 | ||||||||
| Payable balance | 1,000 | 1,000 | 1,000 | |||||||||
| Ned Doha [Member] | Maximum [Member] | ||||||||||||
| Related Party Transaction [Line Items] | ||||||||||||
| Accrued revenue | 1,000 | 1,000 | 1,000 | |||||||||
| Yucaipa Companies LLC [Member] | ||||||||||||
| Related Party Transaction [Line Items] | ||||||||||||
| Account receivables, net | 9,000 | 9,000 | 6,000 | |||||||||
| Management Fees Received | 3,000 | 2,000 | 8,000 | 6,000 | ||||||||
| Soho House Design Services [Member] | ||||||||||||
| Related Party Transaction [Line Items] | ||||||||||||
| Accounts receivable | 1,000 | |||||||||||
| Account receivables, net | 2,000 | 2,000 | 2,000 | |||||||||
| Payable balance | 1,000 | 1,000 | 0 | |||||||||
| Management Fees Received | 1,000 | 1,000 | 1,000 | 1,000 | ||||||||
| Fees Received from Affiliates | 1,000 | 1,000 | 1,000 | 1,000 | ||||||||
| Redchurch Street Studio [Member] | ||||||||||||
| Related Party Transaction [Line Items] | ||||||||||||
| Management Fees Received | 1,000 | $ 1,000 | 1,000 | |||||||||
| Raycliff Capital, LLC | ||||||||||||
| Related Party Transaction [Line Items] | ||||||||||||
| Account receivables, net | 6,000 | 6,000 | ||||||||||
| Accounts payables | 4,000 | 4,000 | ||||||||||
| Accrued revenue | $ 1,000 | 1,000 | ||||||||||
| Washington Street Owner Llc [Member] | ||||||||||||
| Related Party Transaction [Line Items] | ||||||||||||
| Rent expense associated with lease | $ 5,000 | |||||||||||
| Washington Street Owner Llc [Member] | Soho House [Member] | ||||||||||||
| Related Party Transaction [Line Items] | ||||||||||||
| Lease Expiration Date | Mar. 31, 2036 | |||||||||||
| Operating Lease, Right-of-Use Asset | 35,000 | |||||||||||
| Operating lease right-of-use liabilities | 54,000 | |||||||||||
| Rent expense associated with lease | 2,000 | 5,000 | ||||||||||
| Variable Lease Payment, Terms and Conditions | 15 years | |||||||||||
| Lessor, Operating Lease, Variable Lease Payment, Terms and Conditions | 15 years | |||||||||||
| Soho Ludlow Tenant LLC [Member] | Soho House [Member] | ||||||||||||
| Related Party Transaction [Line Items] | ||||||||||||
| Lease Expiration Date | May 31, 2046 | |||||||||||
| Operating Lease, Right-of-Use Asset | 8,000 | $ 8,000 | 8,000 | |||||||||
| Operating lease right-of-use liabilities | 15,000 | 15,000 | 15,000 | |||||||||
| Rent expense associated with lease | 1,000 | 1,000 | 1,000 | 1,000 | ||||||||
| Variable Lease Payment, Terms and Conditions | 27 years | |||||||||||
| Lessor, Operating Lease, Variable Lease Payment, Terms and Conditions | 27 years | |||||||||||
| Little House West Hollywood [Member] | Soho House [Member] | ||||||||||||
| Related Party Transaction [Line Items] | ||||||||||||
| Operating Lease, Right-of-Use Asset | 63,000 | 63,000 | 64,000 | |||||||||
| Operating lease right-of-use liabilities | 67,000 | 67,000 | 68,000 | |||||||||
| Rent expense associated with lease | 1,000 | 1,000 | $ 4,000 | 4,000 | ||||||||
| Variable Lease Payment, Terms and Conditions | 25 years | |||||||||||
| Accounts receivable | 1,000 | $ 1,000 | 1,000 | |||||||||
| Lessor, Operating Lease, Variable Lease Payment, Terms and Conditions | 25 years | |||||||||||
| Tel Aviv House [Member] | Soho House [Member] | ||||||||||||
| Related Party Transaction [Line Items] | ||||||||||||
| Lease Expiration Date | Dec. 15, 2039 | |||||||||||
| Operating Lease, Right-of-Use Asset | 20,000 | |||||||||||
| Operating lease right-of-use liabilities | 22,000 | |||||||||||
| Rent expense associated with lease | $ 1,000 | 2,000 | ||||||||||
| Variable Lease Payment, Terms and Conditions | 19 years | |||||||||||
| Lessor, Operating Lease, Variable Lease Payment, Terms and Conditions | 19 years | |||||||||||
| Le Vallauris Restaurant [Member] | Soho House [Member] | ||||||||||||
| Related Party Transaction [Line Items] | ||||||||||||
| Lease Expiration Date | Mar. 16, 2037 | |||||||||||
| Operating Lease, Right-of-Use Asset | 6,000 | $ 6,000 | 6,000 | |||||||||
| Operating lease right-of-use liabilities | 6,000 | 6,000 | 7,000 | |||||||||
| Rent expense associated with lease | 1,000 | 1,000 | $ 1,000 | 1,000 | ||||||||
| Variable Lease Payment, Terms and Conditions | 15 years | |||||||||||
| Lessor, Operating Lease, Variable Lease Payment, Terms and Conditions | 15 years | |||||||||||
| Kenwood Ranch LLC [Member] | Soho House [Member] | ||||||||||||
| Related Party Transaction [Line Items] | ||||||||||||
| Lease options to extend | five-year | |||||||||||
| Variable Lease Payment, Terms and Conditions | 15 years | |||||||||||
| Accounts receivable | $ 1,000 | 1,000 | ||||||||||
| Lessor, Operating Lease, Variable Lease Payment, Terms and Conditions | 15 years | |||||||||||
| RLAHI LLC [Member] | Soho House [Member] | ||||||||||||
| Related Party Transaction [Line Items] | ||||||||||||
| Lease options to extend | five-year | |||||||||||
| Variable Lease Payment, Terms and Conditions | 15 years | |||||||||||
| Accounts receivable | 1,000 | $ 1,000 | 1,000 | |||||||||
| Lessor, Operating Lease, Variable Lease Payment, Terms and Conditions | 15 years | |||||||||||
| Willows Historic Palm Springs Inn [Member] | Soho House [Member] | ||||||||||||
| Related Party Transaction [Line Items] | ||||||||||||
| Lease Expiration Date | Sep. 14, 2037 | |||||||||||
| Operating Lease, Right-of-Use Asset | 13,000 | $ 13,000 | 14,000 | |||||||||
| Operating lease right-of-use liabilities | 14,000 | 14,000 | 14,000 | |||||||||
| Rent expense associated with lease | $ 1,000 | 1,000 | $ 1,000 | 1,000 | ||||||||
| Operating leases, term of contract | 15 years | 15 years | ||||||||||
| Accounts receivable | $ 1,000 | $ 1,000 | 1,000 | |||||||||
| Ned New York [Member] | ||||||||||||
| Related Party Transaction [Line Items] | ||||||||||||
| Account receivables, net | $ 6,000 | $ 3,000 | ||||||||||
| Management Fee Income | 1,000 | 1,000 | 1,000 | 1,000 | ||||||||
| Ned New York [Member] | Soho House [Member] | ||||||||||||
| Related Party Transaction [Line Items] | ||||||||||||
| Accounts receivable | $ 1,000 | $ 1,000 | $ 1,000 | $ 1,000 | ||||||||
Related Party Transactions and Balances - Summary of Details Amounts Owed By (to) Equity Method Investees Due Within One Year (Detail) - USD ($) $ in Thousands |
Sep. 29, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Related Party Transaction [Line Items] | ||
| Related Party Transaction, Due from (to) Related Party | $ (6,857) | $ (5,536) |
| Soho House Toronto Partnership [Member] | ||
| Related Party Transaction [Line Items] | ||
| Related Party Transaction, Due from (to) Related Party | 673 | 608 |
| Raycliff Red LLP [Member] | ||
| Related Party Transaction [Line Items] | ||
| Related Party Transaction, Due from (to) Related Party | (7,228) | (5,669) |
| Mirador Barcel S.L [Member] | ||
| Related Party Transaction [Line Items] | ||
| Related Party Transaction, Due from (to) Related Party | (1,045) | (784) |
| Little Beach House Barcelona S.L [Member] | ||
| Related Party Transaction [Line Items] | ||
| Related Party Transaction, Due from (to) Related Party | (523) | (406) |
| Mimea XXI S.L. [Member] | ||
| Related Party Transaction [Line Items] | ||
| Related Party Transaction, Due from (to) Related Party | 806 | 715 |
| Soho Beach House Canouan Limited [Member] | ||
| Related Party Transaction [Line Items] | ||
| Related Party Transaction, Due from (to) Related Party | $ 460 | $ 0 |
Revision of Prior Period Financial Statements (Additional Information) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
Sep. 29, 2024 |
Mar. 31, 2024 |
Oct. 01, 2023 |
Jun. 30, 2024 |
Sep. 29, 2024 |
Oct. 01, 2023 |
Dec. 31, 2023 |
Dec. 31, 2022 |
Jul. 02, 2023 |
Apr. 02, 2023 |
|
| Revision of Prior Period Financial Statements [Line items] | ||||||||||
| In House Operating Expenses | $ 158,790 | $ 147,231 | $ 474,240 | $ 444,658 | ||||||
| Net Income (Loss) | 175 | (49,345) | (71,283) | (69,183) | ||||||
| Other revenue | 5,000 | 7,000 | 15,000 | 16,000 | ||||||
| Cash and cash equivalents | 142,816 | 160,128 | 142,816 | 160,128 | $ 159,155 | |||||
| Net cash provided by operating activities | 62,794 | 28,690 | ||||||||
| Other operating expenses | 86,679 | 72,383 | 206,015 | 192,739 | ||||||
| Income tax expense (benefit) | 18,026 | 4,208 | 13,697 | 5,386 | ||||||
| Other current liabilities | $ 45,180 | $ 45,180 | 35,831 | |||||||
| Soho Home [Member] | ||||||||||
| Revision of Prior Period Financial Statements [Line items] | ||||||||||
| Net Income (Loss) | 1,000 | $ 2,000 | ||||||||
| Net assets | $ 2,000 | $ 2,000 | 2,000 | 2,000 | ||||||
| Other revenue | 1,000 | 3,000 | ||||||||
| Other operating expenses | 1,000 | 1,000 | ||||||||
| Soho Works [Member] | ||||||||||
| Revision of Prior Period Financial Statements [Line items] | ||||||||||
| Other operating expenses | 1,000 | 1,000 | 5,000 | |||||||
| Revenue Recognition [Member] | ||||||||||
| Revision of Prior Period Financial Statements [Line items] | ||||||||||
| Other revenue | 1,000 | 1,000 | 6,000 | 6,000 | ||||||
| Deferred revenue | 6,000 | 6,000 | 5,000 | 6,000 | 6,000 | |||||
| Income Tax (Expense) Benefit [Member] | ||||||||||
| Revision of Prior Period Financial Statements [Line items] | ||||||||||
| Net Income (Loss) | 9,000 | 9,000 | ||||||||
| Income tax expense (benefit) | 4,000 | 5,000 | ||||||||
| Deferred tax assets | 3,000 | 3,000 | ||||||||
| Other non-current tax liabilities | 6,000 | |||||||||
| Other current liabilities | 1,000 | |||||||||
| North America [Member] | ||||||||||
| Revision of Prior Period Financial Statements [Line items] | ||||||||||
| Net Income (Loss) | 1,000 | 1,000 | 7,000 | 5,000 | ||||||
| Net assets | 12,000 | 13,000 | 12,000 | 6,000 | ||||||
| Cash and cash equivalents | 3,000 | $ 2,000 | 3,000 | $ 2,000 | 3,000 | 1,000 | $ 2,000 | $ 2,000 | ||
| Net cash provided by operating activities | $ 1,000 | $ 3,000 | $ 3,000 | $ 3,000 | ||||||
Revision of Prior Period Financial Statements - Consolidated Balance Sheets (Details) - USD ($) $ in Thousands |
Sep. 29, 2024 |
Jun. 30, 2024 |
Mar. 31, 2024 |
Dec. 31, 2023 |
Oct. 01, 2023 |
Jul. 02, 2023 |
Apr. 02, 2023 |
Jan. 01, 2023 |
Jan. 02, 2022 |
|---|---|---|---|---|---|---|---|---|---|
| Current assets | |||||||||
| Cash and cash equivalents | $ 142,816 | $ 159,155 | $ 160,128 | ||||||
| Restricted cash | 3,805 | 1,951 | 500 | ||||||
| Accounts receivable, net | 72,530 | 58,089 | |||||||
| Inventories | 63,834 | 57,596 | |||||||
| Prepaid expenses and other current assets | 128,839 | 111,949 | |||||||
| Total current assets | 411,824 | 388,740 | |||||||
| Property and equipment, net | 629,982 | 621,388 | |||||||
| Operating lease assets | 1,186,154 | 1,152,288 | |||||||
| Goodwill | 211,866 | 206,285 | |||||||
| Other intangible assets, net | 121,872 | 127,240 | |||||||
| Equity method investments | 14,211 | 21,695 | |||||||
| Deferred tax assets | 777 | 740 | |||||||
| Other non-current assets | 2,108 | 9,483 | |||||||
| Total non-current assets | 2,166,970 | 2,139,119 | |||||||
| Total assets | 2,578,794 | 2,527,859 | |||||||
| Current liabilities | |||||||||
| Accounts payable | 78,757 | 70,316 | |||||||
| Accrued liabilities | 125,047 | 86,314 | |||||||
| Current portion of deferred revenue | 119,853 | 113,755 | |||||||
| Indirect and employee taxes payable | 45,598 | 40,159 | |||||||
| Current portion of debt, net of debt issuance costs | 35,957 | 29,290 | |||||||
| Other current liabilities | 45,180 | 35,831 | |||||||
| Total current liabilities | 507,628 | 426,822 | |||||||
| Debt, net of current portion and debt issuance costs | 658,868 | 635,576 | |||||||
| Property mortgage loans, net of debt issuance costs | 137,313 | 137,099 | |||||||
| Finance lease liabilities, Non current | 82,258 | 78,481 | |||||||
| Financing obligation | 76,838 | 76,624 | |||||||
| Deferred revenue, net of current portion | 28,460 | 30,057 | |||||||
| Deferred Income Tax Liabilities, Net | 691 | 1,510 | |||||||
| Other Liabilities, Noncurrent | 13,198 | 5,941 | |||||||
| Total non-current liabilities | 2,346,259 | 2,268,190 | |||||||
| Total liabilities | 2,853,887 | 2,695,012 | |||||||
| Commitments and contingencies | |||||||||
| Shareholders' equity | |||||||||
| Common Stock Value | 2,077 | 2,057 | |||||||
| Additional paid-in capital | 1,245,844 | 1,231,941 | |||||||
| Accumulated deficit | (1,447,815) | (1,376,532) | |||||||
| Accumulated Other Comprehensive Income (Loss), Net of Tax | (133) | 29,641 | |||||||
| Treasury stock | (79,396) | (62,000) | |||||||
| Total shareholders' equity attributable to Soho House & Co Inc. | (279,423) | (174,893) | |||||||
| Noncontrolling interest | 4,330 | 7,740 | |||||||
| Total shareholders' equity | (275,093) | (234,210) | (197,297) | (167,153) | (87,280) | (50,670) | (38,120) | (18,883) | |
| Total liabilities and shareholders' equity | 2,578,794 | 2,527,859 | |||||||
| Sites Trading Less Than One Year [Member] | |||||||||
| Current liabilities | |||||||||
| Current portion of operating lease liabilities | 271 | 1,721 | |||||||
| Operating Lease, Liability, Current | 271 | 1,721 | |||||||
| Operating lease right-of-use liabilities | 80,001 | 68,762 | |||||||
| Sites Trading More Than One Year [Member] | |||||||||
| Current liabilities | |||||||||
| Current portion of operating lease liabilities | 56,965 | 49,436 | |||||||
| Operating Lease, Liability, Current | 56,965 | 49,436 | |||||||
| Operating lease right-of-use liabilities | 1,268,632 | 1,234,140 | |||||||
| As Previously Reported [Member] | |||||||||
| Current assets | |||||||||
| Cash and cash equivalents | 143,000 | 151,195 | 142,320 | 161,656 | 162,540 | 129,285 | 153,820 | 182,115 | |
| Restricted cash | 4,000 | 3,190 | 2,236 | 1,951 | 500 | 48,108 | 8,400 | 7,928 | |
| Accounts receivable, net | 55,719 | 58,926 | 58,158 | 64,589 | 55,649 | 44,460 | 42,215 | ||
| Inventories | 63,746 | 62,137 | 60,768 | 55,768 | 65,843 | 57,396 | 57,848 | ||
| Prepaid expenses and other current assets | 131,762 | 138,247 | 112,512 | 116,998 | 119,990 | 111,131 | 91,101 | ||
| Total current assets | 405,612 | 403,866 | 395,045 | 400,395 | 418,875 | 375,207 | 381,207 | ||
| Property and equipment, net | 629,682 | 617,465 | 627,035 | 637,133 | 649,139 | 644,743 | 647,001 | ||
| Operating lease assets | 1,177,175 | 1,147,753 | 1,150,165 | 1,131,435 | 1,123,060 | 1,118,819 | 1,085,579 | ||
| Goodwill | 203,699 | 204,150 | 206,285 | 199,693 | 205,323 | 202,316 | 199,646 | ||
| Other intangible assets, net | 119,243 | 125,363 | 127,240 | 124,356 | 128,255 | 127,164 | 125,968 | ||
| Equity method investments | 12,159 | 21,775 | 21,695 | 25,592 | 25,260 | 22,856 | 21,629 | ||
| Deferred tax assets | 735 | 733 | 740 | 469 | 481 | 301 | 295 | ||
| Other non-current assets | 1,788 | 2,518 | 9,597 | 8,296 | 5,455 | 5,147 | 6,571 | ||
| Total non-current assets | 2,144,481 | 2,119,757 | 2,142,757 | 2,126,974 | 2,136,973 | 2,121,346 | 2,086,689 | ||
| Total assets | 2,550,093 | 2,523,623 | 2,537,802 | 2,527,369 | 2,555,848 | 2,496,553 | 2,467,896 | ||
| Current liabilities | |||||||||
| Accounts payable | 86,386 | 86,482 | 70,316 | 75,598 | 75,200 | 72,585 | 80,741 | ||
| Accrued liabilities | 96,044 | 87,941 | 84,815 | 94,068 | 98,236 | 83,955 | 84,112 | ||
| Current portion of deferred revenue | 124,137 | 114,415 | 117,129 | 108,629 | 114,289 | 104,391 | 91,611 | ||
| Indirect and employee taxes payable | 30,691 | 30,349 | 38,169 | 37,614 | 34,376 | 34,262 | 38,088 | ||
| Current portion of debt, net of debt issuance costs | 34,178 | 34,184 | 29,290 | 25,887 | 26,901 | 26,130 | 1,005 | ||
| Current portion of related party loans | 24,612 | ||||||||
| Other current liabilities | 41,180 | 42,439 | 33,633 | 34,317 | 35,279 | 33,519 | 36,019 | ||
| Total current liabilities | 466,376 | 446,814 | 424,509 | 422,879 | 429,161 | 398,092 | 395,800 | ||
| Debt, net of current portion and debt issuance costs | 647,954 | 637,519 | 635,576 | 607,609 | 603,433 | 591,340 | 579,904 | ||
| Property mortgage loans, net of debt issuance costs | 137,242 | 137,170 | 137,099 | 136,991 | 137,220 | 116,362 | 116,187 | ||
| Finance lease liabilities, Non current | 77,688 | 77,920 | 78,481 | 77,040 | 80,308 | 78,101 | 76,638 | ||
| Financing obligation | 76,768 | 76,717 | 76,624 | 76,533 | 76,444 | 76,358 | 76,239 | ||
| Deferred revenue, net of current portion | 24,721 | 25,195 | 25,787 | 25,772 | 26,668 | 26,861 | 27,118 | ||
| Deferred Income Tax Liabilities, Net | 510 | 1,776 | 1,510 | 1,026 | 1,001 | 1,375 | 1,666 | ||
| Other Liabilities, Noncurrent | 9,831 | 5,222 | 5,941 | 0 | 256 | ||||
| Total non-current liabilities | 2,309,536 | 2,262,203 | 2,263,920 | 2,180,056 | 2,172,490 | 2,131,599 | 2,087,472 | ||
| Total liabilities | 2,775,912 | 2,709,017 | 2,688,429 | 2,602,935 | 2,601,651 | 2,529,691 | 2,483,272 | ||
| Shareholders' equity | |||||||||
| Common Stock Value | 2,071 | 2,068 | 2,057 | 2,052 | 2,044 | 2,041 | 2,037 | ||
| Additional paid-in capital | 1,242,735 | 1,239,266 | 1,231,941 | 1,228,225 | 1,224,137 | 1,218,759 | 1,213,086 | ||
| Accumulated deficit | $ (1,448,000) | (1,440,274) | (1,406,405) | (1,360,365) | (1,303,370) | (1,261,008) | (1,258,364) | (1,242,412) | |
| Accumulated Other Comprehensive Income (Loss), Net of Tax | 30,518 | 34,088 | 30,000 | 51,780 | 31,887 | 47,828 | 54,853 | ||
| Treasury stock | (66,708) | (62,000) | (62,000) | (62,000) | (50,000) | (50,000) | (50,000) | ||
| Total shareholders' equity attributable to Soho House & Co Inc. | (231,658) | (192,983) | (158,367) | (83,313) | (52,940) | (39,736) | (22,436) | ||
| Noncontrolling interest | 5,839 | 7,589 | 7,740 | 7,747 | 7,137 | 6,598 | 7,060 | ||
| Total shareholders' equity | (225,819) | (185,394) | (150,627) | (75,566) | (45,803) | (33,138) | (15,376) | $ 182,192 | |
| Total liabilities and shareholders' equity | 2,550,093 | 2,523,623 | 2,537,802 | 2,527,369 | 2,555,848 | 2,496,553 | 2,467,896 | ||
| As Previously Reported [Member] | Sites Trading Less Than One Year [Member] | |||||||||
| Current liabilities | |||||||||
| Current portion of operating lease liabilities | 656 | 947 | 1,721 | 2,413 | 4,233 | 5,732 | 4,176 | ||
| Operating Lease, Liability, Current | 656 | 947 | 1,721 | 2,413 | 4,233 | 5,732 | 4,176 | ||
| Operating lease right-of-use liabilities | 109,664 | 65,279 | 68,762 | 93,117 | 181,145 | 193,236 | 227,158 | ||
| As Previously Reported [Member] | Sites Trading More Than One Year [Member] | |||||||||
| Current liabilities | |||||||||
| Current portion of operating lease liabilities | 53,104 | 50,057 | 49,436 | 44,353 | 40,647 | 37,518 | 35,436 | ||
| Operating Lease, Liability, Current | 53,104 | 50,057 | 49,436 | 44,353 | 40,647 | 37,518 | 35,436 | ||
| Operating lease right-of-use liabilities | 1,225,158 | 1,235,405 | 1,234,140 | 1,161,968 | 1,066,271 | 1,047,966 | 982,306 | ||
| Adjustment [Member] | |||||||||
| Current assets | |||||||||
| Cash and cash equivalents | (2,727) | (2,555) | (2,501) | (2,412) | (2,278) | (1,985) | (1,435) | ||
| Restricted cash | 0 | 0 | 0 | 0 | 0 | ||||
| Accounts receivable, net | (738) | 5 | (69) | 172 | 172 | 172 | 171 | ||
| Inventories | (3,240) | (3,160) | (3,172) | (1,658) | (1,614) | (1,435) | (1,418) | ||
| Prepaid expenses and other current assets | (190) | (619) | (563) | (40) | 166 | 138 | 104 | ||
| Total current assets | (6,895) | (6,329) | (6,305) | (3,938) | (3,554) | (3,110) | (2,578) | ||
| Property and equipment, net | (5,280) | (5,432) | (5,647) | (2,076) | (1,449) | (1,512) | (1,342) | ||
| Operating lease assets | 2,289 | 2,092 | 2,123 | 0 | 0 | 0 | |||
| Goodwill | 0 | 0 | 0 | 0 | 0 | ||||
| Other intangible assets, net | 0 | 0 | 0 | 0 | 0 | ||||
| Equity method investments | (54) | (54) | 0 | 0 | 0 | ||||
| Deferred tax assets | 3,677 | 2,533 | 0 | 0 | 0 | ||||
| Other non-current assets | (114) | (114) | (114) | (114) | (114) | (115) | (113) | ||
| Total non-current assets | 518 | (975) | (3,638) | (2,190) | (1,563) | (1,627) | (1,455) | ||
| Total assets | (6,377) | (7,304) | (9,943) | (6,128) | (5,117) | (4,737) | (4,033) | ||
| Current liabilities | |||||||||
| Accounts payable | 0 | 0 | 0 | ||||||
| Accrued liabilities | 1,811 | 1,512 | 1,499 | 1,499 | 1,622 | 1,565 | 1,603 | ||
| Current portion of deferred revenue | (3,639) | (3,528) | (3,374) | (2,755) | (4,008) | (3,458) | (3,283) | ||
| Indirect and employee taxes payable | 3,312 | 2,095 | 1,990 | 1,605 | 1,460 | 1,272 | 1,155 | ||
| Current portion of debt, net of debt issuance costs | 0 | 0 | 0 | ||||||
| Current portion of related party loans | 0 | ||||||||
| Other current liabilities | 2,332 | 1,747 | 2,198 | 919 | 676 | 846 | (1) | ||
| Total current liabilities | 3,816 | 1,826 | 2,313 | 1,268 | (250) | 245 | (526) | ||
| Debt, net of current portion and debt issuance costs | 0 | 0 | 0 | 0 | 0 | ||||
| Property mortgage loans, net of debt issuance costs | 0 | 0 | 0 | 0 | 0 | ||||
| Finance lease liabilities, Non current | 0 | 0 | 0 | 0 | 0 | ||||
| Financing obligation | 0 | 0 | 0 | 0 | 0 | ||||
| Deferred revenue, net of current portion | 3,937 | 3,935 | 4,270 | 4,318 | 0 | ||||
| Deferred Income Tax Liabilities, Net | 0 | 0 | 0 | 0 | 0 | ||||
| Other Liabilities, Noncurrent | (5,739) | (1,162) | 0 | 0 | 0 | ||||
| Total non-current liabilities | (1,802) | 2,773 | 4,270 | 4,318 | 0 | ||||
| Total liabilities | 2,014 | 4,599 | 6,583 | 5,586 | (250) | 245 | (526) | ||
| Shareholders' equity | |||||||||
| Common Stock Value | 0 | 0 | 0 | ||||||
| Additional paid-in capital | 0 | 0 | 0 | 0 | 0 | ||||
| Accumulated deficit | (7,716) | (11,686) | (16,167) | (11,802) | (4,819) | (4,930) | (3,577) | ||
| Accumulated Other Comprehensive Income (Loss), Net of Tax | (470) | (12) | (359) | 88 | (48) | (52) | 70 | ||
| Treasury stock | 0 | 0 | 0 | 0 | 0 | ||||
| Total shareholders' equity attributable to Soho House & Co Inc. | (8,186) | (11,698) | (16,526) | (11,714) | (4,867) | (4,982) | (3,507) | ||
| Noncontrolling interest | (205) | (205) | 0 | 0 | 0 | ||||
| Total shareholders' equity | (8,391) | (11,903) | (16,526) | (11,714) | (4,867) | (4,982) | (3,507) | ||
| Total liabilities and shareholders' equity | (6,377) | (7,304) | (9,943) | (6,128) | (5,117) | (4,737) | (4,033) | ||
| Adjustment [Member] | Sites Trading Less Than One Year [Member] | |||||||||
| Current liabilities | |||||||||
| Current portion of operating lease liabilities | 0 | 0 | 0 | ||||||
| Operating Lease, Liability, Current | 0 | 0 | 0 | ||||||
| Operating lease right-of-use liabilities | 0 | 0 | 0 | 0 | 0 | ||||
| Adjustment [Member] | Sites Trading More Than One Year [Member] | |||||||||
| Current liabilities | |||||||||
| Current portion of operating lease liabilities | 0 | 0 | 0 | 20 | 0 | ||||
| Operating Lease, Liability, Current | 0 | 0 | 0 | 20 | 0 | ||||
| Operating lease right-of-use liabilities | 0 | 0 | 0 | 0 | 0 | ||||
| As Revised [Member] | |||||||||
| Current assets | |||||||||
| Cash and cash equivalents | 148,468 | 139,765 | 159,155 | 160,128 | 127,007 | 151,835 | 180,680 | ||
| Restricted cash | 3,190 | 2,236 | 1,951 | 500 | 48,108 | 8,400 | 7,928 | ||
| Accounts receivable, net | 54,981 | 58,931 | 58,089 | 64,761 | 55,821 | 44,632 | 42,386 | ||
| Inventories | 60,506 | 58,977 | 57,596 | 54,110 | 64,229 | 55,961 | 56,430 | ||
| Prepaid expenses and other current assets | 131,572 | 137,628 | 111,949 | 116,958 | 120,156 | 111,269 | 91,205 | ||
| Total current assets | 398,717 | 397,537 | 388,740 | 396,457 | 415,321 | 372,097 | 378,629 | ||
| Property and equipment, net | 624,402 | 612,033 | 621,388 | 635,057 | 647,690 | 643,231 | 645,659 | ||
| Operating lease assets | 1,179,464 | 1,149,845 | 1,152,288 | 1,131,435 | 1,123,060 | 1,118,819 | 1,085,579 | ||
| Goodwill | 203,699 | 204,150 | 206,285 | 199,693 | 205,323 | 202,316 | 199,646 | ||
| Other intangible assets, net | 119,243 | 125,363 | 127,240 | 124,356 | 128,255 | 127,164 | 125,968 | ||
| Equity method investments | 12,105 | 21,721 | 21,695 | 25,592 | 25,260 | 22,856 | 21,629 | ||
| Deferred tax assets | 4,412 | 3,266 | 740 | 469 | 481 | 301 | 295 | ||
| Other non-current assets | 1,674 | 2,404 | 9,483 | 8,182 | 5,341 | 5,032 | 6,458 | ||
| Total non-current assets | 2,144,999 | 2,118,782 | 2,139,119 | 2,124,784 | 2,135,410 | 2,119,719 | 2,085,234 | ||
| Total assets | 2,543,716 | 2,516,319 | 2,527,859 | 2,521,241 | 2,550,731 | 2,491,816 | 2,463,863 | ||
| Current liabilities | |||||||||
| Accounts payable | 86,386 | 86,482 | 70,316 | 75,598 | 75,200 | 72,585 | 80,741 | ||
| Accrued liabilities | 97,855 | 89,453 | 86,314 | 95,567 | 99,858 | 85,520 | 85,715 | ||
| Current portion of deferred revenue | 120,498 | 110,887 | 113,755 | 105,874 | 110,281 | 100,933 | 88,328 | ||
| Indirect and employee taxes payable | 34,003 | 32,444 | 40,159 | 39,219 | 35,836 | 35,534 | 39,243 | ||
| Current portion of debt, net of debt issuance costs | 34,178 | 34,184 | 29,290 | 25,887 | 26,901 | 26,130 | 1,005 | ||
| Current portion of related party loans | 24,612 | ||||||||
| Other current liabilities | 43,512 | 44,186 | 35,831 | 35,236 | 35,955 | 34,365 | 36,018 | ||
| Total current liabilities | 470,192 | 448,640 | 426,822 | 424,147 | 428,911 | 398,337 | 395,274 | ||
| Debt, net of current portion and debt issuance costs | 647,954 | 637,519 | 635,576 | 607,609 | 603,433 | 591,340 | 579,904 | ||
| Property mortgage loans, net of debt issuance costs | 137,242 | 137,170 | 137,099 | 136,991 | 137,220 | 116,362 | 116,187 | ||
| Finance lease liabilities, Non current | 77,688 | 77,920 | 78,481 | 77,040 | 80,308 | 78,101 | 76,638 | ||
| Financing obligation | 76,768 | 76,717 | 76,624 | 76,533 | 76,444 | 76,358 | 76,239 | ||
| Deferred revenue, net of current portion | 28,658 | 29,130 | 30,057 | 30,090 | 26,668 | 26,861 | 27,118 | ||
| Deferred Income Tax Liabilities, Net | 510 | 1,776 | 1,510 | 1,026 | 1,001 | 1,375 | 1,666 | ||
| Other Liabilities, Noncurrent | 4,092 | 4,060 | 5,941 | 0 | 256 | ||||
| Total non-current liabilities | 2,307,734 | 2,264,976 | 2,268,190 | 2,184,374 | 2,172,490 | 2,131,599 | 2,087,472 | ||
| Total liabilities | 2,777,926 | 2,713,616 | 2,695,012 | 2,608,521 | 2,601,401 | 2,529,936 | 2,482,746 | ||
| Shareholders' equity | |||||||||
| Common Stock Value | 2,071 | 2,068 | 2,057 | 2,052 | 2,044 | 2,041 | 2,037 | ||
| Additional paid-in capital | 1,242,735 | 1,239,266 | 1,231,941 | 1,228,225 | 1,224,137 | 1,218,759 | 1,213,086 | ||
| Accumulated deficit | (1,447,990) | (1,418,091) | (1,376,532) | (1,315,172) | (1,265,827) | (1,263,294) | (1,245,989) | ||
| Accumulated Other Comprehensive Income (Loss), Net of Tax | 30,048 | 34,076 | 29,641 | 51,868 | 31,839 | 47,776 | 54,923 | ||
| Treasury stock | (66,708) | (62,000) | (62,000) | (62,000) | (50,000) | (50,000) | (50,000) | ||
| Total shareholders' equity attributable to Soho House & Co Inc. | (239,844) | (204,681) | (174,893) | (95,027) | (57,807) | (44,718) | (25,943) | ||
| Noncontrolling interest | 5,634 | 7,384 | 7,740 | 7,747 | 7,137 | 6,598 | 7,060 | ||
| Total shareholders' equity | (234,210) | (197,297) | (167,153) | (87,280) | (50,670) | (38,120) | (18,883) | $ 182,192 | |
| Total liabilities and shareholders' equity | 2,543,716 | 2,516,319 | 2,527,859 | 2,521,241 | 2,550,731 | 2,491,816 | 2,463,863 | ||
| As Revised [Member] | Sites Trading Less Than One Year [Member] | |||||||||
| Current liabilities | |||||||||
| Current portion of operating lease liabilities | 656 | 947 | 1,721 | 2,413 | 4,233 | 5,732 | 4,176 | ||
| Operating Lease, Liability, Current | 656 | 947 | 1,721 | 2,413 | 4,233 | 5,732 | 4,176 | ||
| Operating lease right-of-use liabilities | 109,664 | 65,279 | 68,762 | 93,117 | 181,145 | 193,236 | 227,158 | ||
| As Revised [Member] | Sites Trading More Than One Year [Member] | |||||||||
| Current liabilities | |||||||||
| Current portion of operating lease liabilities | 53,104 | 50,057 | 49,436 | 44,353 | 40,647 | 37,538 | 35,436 | ||
| Operating Lease, Liability, Current | 53,104 | 50,057 | 49,436 | 44,353 | 40,647 | 37,538 | 35,436 | ||
| Operating lease right-of-use liabilities | $ 1,225,158 | $ 1,235,405 | $ 1,234,140 | $ 1,161,968 | $ 1,066,271 | $ 1,047,966 | $ 982,306 |
Revision of Prior Period Financial Statements - Consolidated Statements of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 29, 2024 |
Jun. 30, 2024 |
Mar. 31, 2024 |
Oct. 01, 2023 |
Jul. 02, 2023 |
Apr. 02, 2023 |
Jun. 30, 2024 |
Jul. 02, 2023 |
Sep. 29, 2024 |
Oct. 01, 2023 |
Dec. 31, 2023 |
Jan. 01, 2023 |
|
| Revenues | ||||||||||||
| Revenues | $ 333,368 | $ 293,387 | $ 898,259 | $ 835,149 | ||||||||
| Operating expenses | ||||||||||||
| In-House operating expenses | (158,790) | (147,231) | (474,240) | (444,658) | ||||||||
| Other operating expenses | (86,679) | (72,383) | (206,015) | (192,739) | ||||||||
| General and administrative | (39,672) | (35,564) | (112,770) | (103,381) | ||||||||
| Pre-opening expenses | (2,561) | (5,094) | (13,958) | (14,369) | ||||||||
| Depreciation and amortization | (26,017) | (24,503) | (76,642) | (74,162) | ||||||||
| Share-based compensation | (3,513) | (4,683) | (15,150) | (16,186) | ||||||||
| Foreign exchange (loss) gain, net | 39,591 | (30,698) | 28,937 | 3,899 | ||||||||
| Other, net | (3,775) | (617) | (13,738) | (1,625) | ||||||||
| Total operating expenses | (295,484) | (320,773) | (897,644) | (843,221) | ||||||||
| Operating income (loss) | 37,884 | (27,386) | 615 | (8,072) | ||||||||
| Other (expense) income | ||||||||||||
| Interest expense, net | (20,658) | (18,799) | (61,846) | (59,527) | ||||||||
| Gain (loss) on sale of property and other, net | (236) | 7 | (62) | 596 | ||||||||
| Share of profit (loss) of equity method investments | 1,754 | 1,953 | 3,645 | 4,411 | ||||||||
| Total other expense, net | (19,140) | (16,839) | (58,263) | (54,520) | ||||||||
| Income (loss) before income taxes | 18,744 | (44,225) | (57,648) | (62,592) | ||||||||
| Income tax (expense) benefit | (18,026) | (4,208) | (13,697) | (5,386) | ||||||||
| Net income (loss) | 718 | $ (30,205) | $ (41,858) | (48,433) | $ (2,176) | $ (17,369) | (71,345) | (67,978) | ||||
| Net (income) loss attributable to noncontrolling interests | (543) | (912) | 62 | (1,205) | ||||||||
| Net income (loss) attributable to Soho House & Co Inc. | $ 175 | $ (49,345) | $ (71,283) | $ (69,183) | ||||||||
| Net income (loss) per share attributable to Class A and Class B common stock | ||||||||||||
| Net income (loss) per share attributable to Class A and Class B common stock Basic | $ 0 | $ (0.25) | $ (0.36) | $ (0.35) | ||||||||
| Net income (loss) per share attributable to Class A and Class B common stock Diluted | $ 0 | $ (0.25) | $ (0.36) | $ (0.35) | ||||||||
| Weighted Average Number of Shares Outstanding, Basic | 194,515 | 196,153 | 195,503 | 195,746 | ||||||||
| Weighted Average Number of Shares Outstanding, Diluted | 195,485 | 196,153 | 195,503 | 195,746 | ||||||||
| Membership revenues [Member] | ||||||||||||
| Revenues | ||||||||||||
| Revenues | $ 107,394 | $ 92,049 | $ 308,690 | $ 262,062 | ||||||||
| In-House revenues [Member] | ||||||||||||
| Revenues | ||||||||||||
| Revenues | 120,658 | 115,223 | 358,213 | 356,862 | ||||||||
| Other revenues [Member] | ||||||||||||
| Revenues | ||||||||||||
| Revenues | $ 105,316 | 86,115 | $ 231,356 | 216,225 | ||||||||
| As Previously Reported [Member] | ||||||||||||
| Revenues | ||||||||||||
| Revenues | 305,146 | 263,146 | 300,957 | 288,923 | 255,209 | $ 568,292 | $ 544,132 | 845,089 | $ 1,135,879 | $ 972,214 | ||
| Operating expenses | ||||||||||||
| In-House operating expenses | (162,884) | (151,629) | (146,480) | (152,353) | (143,972) | (314,513) | (296,325) | (442,805) | (589,357) | (524,929) | ||
| Other operating expenses | (68,400) | (53,967) | (73,709) | (66,226) | (56,381) | (122,367) | (122,607) | (196,316) | (258,483) | (250,336) | ||
| General and administrative | (38,726) | (34,372) | (35,564) | (37,243) | (30,574) | (73,098) | (67,817) | (103,381) | (143,583) | (123,435) | ||
| Pre-opening expenses | (5,652) | (5,754) | (5,093) | (4,206) | (4,994) | (11,406) | (9,200) | (14,293) | (18,604) | (14,081) | ||
| Depreciation and amortization | (25,381) | (25,744) | (24,516) | (25,249) | (24,464) | (51,125) | (49,713) | (74,229) | (111,403) | (99,930) | ||
| Share-based compensation | (3,598) | (8,039) | (4,683) | (5,657) | (5,846) | (11,637) | (11,503) | (16,186) | (20,230) | (27,681) | ||
| Foreign exchange (loss) gain, net | (5,173) | (5,481) | (30,698) | 21,584 | 13,013 | (10,654) | 34,597 | 3,899 | 36,196 | (69,600) | ||
| Loss on impairment of long-lived assets | 0 | (47,455) | ||||||||||
| Other, net | (6,700) | (3,243) | (617) | 21 | (1,029) | (9,943) | (1,008) | (1,625) | (5,963) | (9,703) | ||
| Total operating expenses | (316,514) | (288,229) | (321,360) | (269,329) | (254,247) | (604,743) | (523,576) | (844,936) | (1,158,882) | (1,119,695) | ||
| Operating income (loss) | (11,368) | (25,083) | (20,403) | 19,594 | 962 | (36,451) | 20,556 | 153 | (23,003) | (147,481) | ||
| Other (expense) income | ||||||||||||
| Interest expense, net | (19,989) | (21,199) | (18,799) | (22,027) | (18,701) | (41,188) | (40,728) | (59,527) | (84,136) | (71,499) | ||
| Gain (loss) on sale of property and other, net | 109 | 65 | 7 | (92) | 681 | 174 | 589 | 596 | (1,038) | 390 | ||
| Share of profit (loss) of equity method investments | 1,514 | 377 | 1,953 | 1,587 | 871 | 1,891 | 2,458 | 4,411 | 1,900 | 3,941 | ||
| Total other expense, net | (18,366) | (20,757) | (16,839) | (20,532) | (17,149) | (39,123) | (37,681) | (54,520) | (83,274) | (67,168) | ||
| Income (loss) before income taxes | (29,734) | (45,840) | (37,242) | (938) | (16,187) | (75,574) | (17,125) | (54,367) | (106,277) | (214,649) | ||
| Income tax (expense) benefit | (4,441) | (499) | (4,208) | (1,349) | 171 | (4,940) | (1,178) | (5,386) | (10,811) | (5,131) | ||
| Net income (loss) | (34,175) | (46,339) | (41,450) | (2,287) | (16,016) | (80,514) | (18,303) | (59,753) | (117,088) | (219,780) | ||
| Net (income) loss attributable to noncontrolling interests | 306 | 299 | (912) | (357) | 64 | 605 | (293) | (1,205) | (865) | (800) | ||
| Net income (loss) attributable to Soho House & Co Inc. | $ (33,869) | $ (46,040) | $ (42,362) | $ (2,644) | $ (15,952) | $ (79,909) | $ (18,596) | $ (60,958) | $ (117,953) | $ (220,580) | ||
| Net income (loss) per share attributable to Class A and Class B common stock | ||||||||||||
| Net income (loss) per share attributable to Class A and Class B common stock Basic | $ (0.17) | $ (0.24) | $ (0.22) | $ (0.01) | $ (0.08) | $ (0.41) | $ (0.1) | $ (0.31) | $ (0.6) | $ (1.1) | ||
| Net income (loss) per share attributable to Class A and Class B common stock Diluted | $ (0.17) | $ (0.24) | $ (0.22) | $ (0.01) | $ (0.08) | $ (0.41) | $ (0.1) | $ (0.31) | $ (0.6) | $ (1.1) | ||
| Weighted Average Number of Shares Outstanding, Basic | 196,258 | 195,711 | 196,153 | 195,662 | 195,422 | 195,987 | 195,542 | 195,746 | 195,590 | 199,985 | ||
| Weighted Average Number of Shares Outstanding, Diluted | 196,258 | 195,711 | 196,153 | 195,662 | 195,422 | 195,987 | 195,542 | 195,746 | 195,590 | 199,985 | ||
| As Previously Reported [Member] | Membership revenues [Member] | ||||||||||||
| Revenues | ||||||||||||
| Revenues | $ 103,584 | $ 100,191 | $ 93,279 | $ 89,193 | $ 83,248 | $ 203,775 | $ 172,441 | $ 265,720 | $ 361,487 | $ 272,809 | ||
| As Previously Reported [Member] | In-House revenues [Member] | ||||||||||||
| Revenues | ||||||||||||
| Revenues | 128,352 | 110,401 | 115,288 | 125,480 | 116,078 | 238,753 | 241,558 | 356,846 | 482,066 | 426,602 | ||
| As Previously Reported [Member] | Other revenues [Member] | ||||||||||||
| Revenues | ||||||||||||
| Revenues | 73,210 | 52,554 | 92,390 | 74,250 | 55,883 | 125,764 | 130,133 | 222,523 | 292,326 | 272,803 | ||
| Adjustment [Member] | ||||||||||||
| Revenues | ||||||||||||
| Revenues | (2,199) | (1,202) | (7,570) | (979) | (1,391) | (3,401) | (2,370) | (9,940) | (10,745) | 3,789 | ||
| Operating expenses | ||||||||||||
| In-House operating expenses | (1,095) | 158 | (751) | (42) | (1,060) | (937) | (1,102) | (1,853) | (3,118) | (5,800) | ||
| Other operating expenses | 1,489 | 1,542 | 1,326 | 1,084 | 1,167 | 3,031 | 2,251 | 3,577 | 1,586 | (1,565) | ||
| General and administrative | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||
| Pre-opening expenses | 1 | 8 | (1) | 1 | (76) | 9 | (75) | (76) | (75) | 3 | ||
| Depreciation and amortization | 250 | 250 | 13 | 35 | 19 | 500 | 54 | 67 | 122 | 15 | ||
| Share-based compensation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||
| Foreign exchange (loss) gain, net | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||
| Loss on impairment of long-lived assets | 0 | (317) | ||||||||||
| Other, net | (20) | 0 | 0 | 0 | 0 | (20) | 0 | 0 | (43) | 0 | ||
| Total operating expenses | 625 | 1,958 | 587 | 1,078 | 50 | 2,583 | 1,128 | 1,715 | (1,845) | (7,347) | ||
| Operating income (loss) | (1,574) | 756 | (6,983) | 99 | (1,341) | (818) | (1,242) | (8,225) | (12,590) | (3,558) | ||
| Other (expense) income | ||||||||||||
| Interest expense, net | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (19) | ||
| Gain (loss) on sale of property and other, net | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||
| Share of profit (loss) of equity method investments | 0 | 0 | 0 | 12 | (12) | 0 | 0 | 0 | 0 | 0 | ||
| Total other expense, net | 0 | 0 | 0 | 12 | (12) | 0 | 0 | 0 | 0 | (19) | ||
| Income (loss) before income taxes | (1,574) | 756 | (6,983) | 111 | (1,353) | (818) | (1,242) | (8,225) | (12,590) | (3,577) | ||
| Income tax (expense) benefit | 5,544 | 3,725 | 0 | 0 | 0 | 9,269 | 0 | 0 | 0 | 0 | ||
| Net income (loss) | 3,970 | 4,481 | (6,983) | 111 | (1,353) | 8,451 | (1,242) | (8,225) | (12,590) | (3,577) | ||
| Net (income) loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||
| Net income (loss) attributable to Soho House & Co Inc. | $ 3,970 | $ 4,481 | $ (6,983) | $ 111 | $ (1,353) | $ 8,451 | $ (1,242) | $ (8,225) | $ (12,590) | $ (3,577) | ||
| Net income (loss) per share attributable to Class A and Class B common stock | ||||||||||||
| Net income (loss) per share attributable to Class A and Class B common stock Basic | $ 0.02 | $ 0.03 | $ (0.03) | $ 0 | $ (0.01) | $ 0.05 | $ (0) | $ (0.04) | $ (0.07) | $ (0.02) | ||
| Net income (loss) per share attributable to Class A and Class B common stock Diluted | $ 0.02 | $ 0.03 | $ (0.03) | $ 0 | $ (0.01) | $ 0.05 | $ (0) | $ (0.04) | $ (0.07) | $ (0.02) | ||
| Weighted Average Number of Shares Outstanding, Basic | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||
| Weighted Average Number of Shares Outstanding, Diluted | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||
| Adjustment [Member] | Membership revenues [Member] | ||||||||||||
| Revenues | ||||||||||||
| Revenues | $ (1,237) | $ (1,242) | $ (1,230) | $ (1,230) | $ (1,198) | $ (2,479) | $ (2,428) | $ (3,658) | $ (4,882) | $ 0 | ||
| Adjustment [Member] | In-House revenues [Member] | ||||||||||||
| Revenues | ||||||||||||
| Revenues | (1,067) | (131) | (65) | 81 | 0 | (1,198) | 81 | 16 | 89 | 607 | ||
| Adjustment [Member] | Other revenues [Member] | ||||||||||||
| Revenues | ||||||||||||
| Revenues | 105 | 171 | (6,275) | 170 | (193) | 276 | (23) | (6,298) | (5,952) | 3,182 | ||
| As Revised [Member] | ||||||||||||
| Revenues | ||||||||||||
| Revenues | 302,947 | 261,944 | 293,387 | 287,944 | 253,818 | 564,891 | 541,762 | 835,149 | 1,125,134 | 976,003 | ||
| Operating expenses | ||||||||||||
| In-House operating expenses | (163,979) | (151,471) | (147,231) | (152,395) | (145,032) | (315,450) | (297,427) | (444,658) | (592,475) | (530,729) | ||
| Other operating expenses | (66,911) | (52,425) | (72,383) | (65,142) | (55,214) | (119,336) | (120,356) | (192,739) | (256,897) | (251,901) | ||
| General and administrative | (38,726) | (34,372) | (35,564) | (37,243) | (30,574) | (73,098) | (67,817) | (103,381) | (143,583) | (123,435) | ||
| Pre-opening expenses | (5,651) | (5,746) | (5,094) | (4,205) | (5,070) | (11,397) | (9,275) | (14,369) | (18,679) | (14,078) | ||
| Depreciation and amortization | (25,131) | (25,494) | (24,503) | (25,214) | (24,445) | (50,625) | (49,659) | (74,162) | (111,281) | (99,915) | ||
| Share-based compensation | (3,598) | (8,039) | (4,683) | (5,657) | (5,846) | (11,637) | (11,503) | (16,186) | (20,230) | (27,681) | ||
| Foreign exchange (loss) gain, net | (5,173) | (5,481) | (30,698) | 21,584 | 13,013 | (10,654) | 34,597 | 3,899 | 36,196 | (69,600) | ||
| Loss on impairment of long-lived assets | 0 | (47,772) | ||||||||||
| Other, net | (6,720) | (3,243) | (617) | 21 | (1,029) | (9,963) | (1,008) | (1,625) | (6,006) | (9,703) | ||
| Total operating expenses | (315,889) | (286,271) | (320,773) | (268,251) | (254,197) | (602,160) | (522,448) | (843,221) | (1,160,727) | (1,127,042) | ||
| Operating income (loss) | (12,942) | (24,327) | (27,386) | 19,693 | (379) | (37,269) | 19,314 | (8,072) | (35,593) | (151,039) | ||
| Other (expense) income | ||||||||||||
| Interest expense, net | (19,989) | (21,199) | (18,799) | (22,027) | (18,701) | (41,188) | (40,728) | (59,527) | (84,136) | (71,518) | ||
| Gain (loss) on sale of property and other, net | 109 | 65 | 7 | (92) | 681 | 174 | 589 | 596 | (1,038) | 390 | ||
| Share of profit (loss) of equity method investments | 1,514 | 377 | 1,953 | 1,599 | 859 | 1,891 | 2,458 | 4,411 | 1,900 | 3,941 | ||
| Total other expense, net | (18,366) | (20,757) | (16,839) | (20,520) | (17,161) | (39,123) | (37,681) | (54,520) | (83,274) | (67,187) | ||
| Income (loss) before income taxes | (31,308) | (45,084) | (44,225) | (827) | (17,540) | (76,392) | (18,367) | (62,592) | (118,867) | (218,226) | ||
| Income tax (expense) benefit | 1,103 | 3,226 | (4,208) | (1,349) | 171 | 4,329 | (1,178) | (5,386) | (10,811) | (5,131) | ||
| Net income (loss) | (30,205) | (41,858) | (48,433) | (2,176) | (17,369) | (72,063) | (19,545) | (67,978) | (129,678) | (223,357) | ||
| Net (income) loss attributable to noncontrolling interests | 306 | 299 | (912) | (357) | 64 | 605 | (293) | (1,205) | (865) | (800) | ||
| Net income (loss) attributable to Soho House & Co Inc. | $ (29,899) | $ (41,559) | $ (49,345) | $ (2,533) | $ (17,305) | $ (71,458) | $ (19,838) | $ (69,183) | $ (130,543) | $ (224,157) | ||
| Net income (loss) per share attributable to Class A and Class B common stock | ||||||||||||
| Net income (loss) per share attributable to Class A and Class B common stock Basic | $ (0.15) | $ (0.21) | $ (0.25) | $ (0.01) | $ (0.09) | $ (0.36) | $ (0.1) | $ (0.35) | $ (0.67) | $ (1.12) | ||
| Net income (loss) per share attributable to Class A and Class B common stock Diluted | $ (0.15) | $ (0.21) | $ (0.25) | $ (0.01) | $ (0.09) | $ (0.36) | $ (0.1) | $ (0.35) | $ (0.67) | $ (1.12) | ||
| Weighted Average Number of Shares Outstanding, Basic | 196,258 | 195,711 | 196,153 | 195,662 | 195,422 | 195,987 | 195,542 | 195,746 | 195,590 | 199,985 | ||
| Weighted Average Number of Shares Outstanding, Diluted | 196,258 | 195,711 | 196,153 | 195,662 | 195,422 | 195,987 | 195,542 | 195,746 | 195,590 | 199,985 | ||
| As Revised [Member] | Membership revenues [Member] | ||||||||||||
| Revenues | ||||||||||||
| Revenues | $ 102,347 | $ 98,949 | $ 92,049 | $ 87,963 | $ 82,050 | $ 201,296 | $ 170,013 | $ 262,062 | $ 356,605 | $ 272,809 | ||
| As Revised [Member] | In-House revenues [Member] | ||||||||||||
| Revenues | ||||||||||||
| Revenues | 127,285 | 110,270 | 115,223 | 125,561 | 116,078 | 237,555 | 241,639 | 356,862 | 482,155 | 427,209 | ||
| As Revised [Member] | Other revenues [Member] | ||||||||||||
| Revenues | ||||||||||||
| Revenues | $ 73,315 | $ 52,725 | $ 86,115 | $ 74,420 | $ 55,690 | $ 126,040 | $ 130,110 | $ 216,225 | $ 286,374 | $ 275,985 | ||
Revision of Prior Period Financial Statements - Consolidated Statement of Comprehensive Loss (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 29, 2024 |
Jun. 30, 2024 |
Mar. 31, 2024 |
Oct. 01, 2023 |
Jul. 02, 2023 |
Apr. 02, 2023 |
Jun. 30, 2024 |
Jul. 02, 2023 |
Sep. 29, 2024 |
Oct. 01, 2023 |
Dec. 31, 2023 |
Jan. 01, 2023 |
|
| Net income (loss) | $ 718 | $ (30,205) | $ (41,858) | $ (48,433) | $ (2,176) | $ (17,369) | $ (71,345) | $ (67,978) | ||||
| Other comprehensive income (loss) | ||||||||||||
| Foreign currency translation adjustment | (29,785) | 19,727 | (29,425) | (3,183) | ||||||||
| Comprehensive loss | (29,067) | (28,706) | (100,770) | (71,161) | ||||||||
| (Income) loss attributable to noncontrolling interest | (543) | (912) | 62 | (1,205) | ||||||||
| Foreign currency translation adjustment attributable to noncontrolling interest | (396) | 302 | (349) | 128 | ||||||||
| Total comprehensive income (loss) attributable to Soho House & Co Inc. | $ (30,006) | (29,316) | $ (101,057) | (72,238) | ||||||||
| As Previously Reported [Member] | ||||||||||||
| Net income (loss) | (34,175) | (46,339) | (41,450) | (2,287) | (16,016) | $ (80,514) | $ (18,303) | (59,753) | $ (117,088) | $ (219,780) | ||
| Other comprehensive income (loss) | ||||||||||||
| Foreign currency translation adjustment | (3,560) | 4,236 | 19,591 | (15,759) | (7,033) | 676 | (22,792) | (3,201) | (24,648) | 47,480 | ||
| Comprehensive loss | (37,735) | (42,103) | (21,859) | (18,046) | (23,049) | (79,838) | (41,095) | (62,954) | (141,736) | (172,300) | ||
| (Income) loss attributable to noncontrolling interest | 306 | 299 | (912) | (357) | 64 | 605 | (293) | (1,205) | (865) | (800) | ||
| Foreign currency translation adjustment attributable to noncontrolling interest | (10) | (148) | 302 | (182) | 8 | (158) | (174) | 128 | (205) | 476 | ||
| Total comprehensive income (loss) attributable to Soho House & Co Inc. | (37,439) | (41,952) | (22,469) | (18,585) | (22,977) | (79,391) | (41,562) | (64,031) | (142,806) | (172,624) | ||
| Adjustment [Member] | ||||||||||||
| Net income (loss) | 3,970 | 4,481 | (6,983) | 111 | (1,353) | 8,451 | (1,242) | (8,225) | (12,590) | (3,577) | ||
| Other comprehensive income (loss) | ||||||||||||
| Foreign currency translation adjustment | (458) | 142 | 136 | 4 | (122) | (316) | (118) | 18 | (429) | 70 | ||
| Comprehensive loss | 3,512 | 4,623 | (6,847) | 115 | (1,475) | 8,135 | (1,360) | (8,207) | (13,019) | (3,507) | ||
| (Income) loss attributable to noncontrolling interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||
| Foreign currency translation adjustment attributable to noncontrolling interest | 0 | 205 | 0 | 0 | 0 | 205 | 0 | 0 | 0 | 0 | ||
| Total comprehensive income (loss) attributable to Soho House & Co Inc. | 3,512 | 4,828 | (6,847) | 115 | (1,475) | 8,340 | (1,360) | (8,207) | (13,019) | (3,507) | ||
| As Revised [Member] | ||||||||||||
| Net income (loss) | (30,205) | (41,858) | (48,433) | (2,176) | (17,369) | (72,063) | (19,545) | (67,978) | (129,678) | (223,357) | ||
| Other comprehensive income (loss) | ||||||||||||
| Foreign currency translation adjustment | (4,018) | 4,378 | 19,727 | (15,755) | (7,155) | 360 | (22,910) | (3,183) | 47,550 | |||
| Comprehensive loss | (34,223) | (37,480) | (28,706) | (17,931) | (24,524) | (71,703) | (42,455) | (71,161) | (154,755) | (175,807) | ||
| (Income) loss attributable to noncontrolling interest | 306 | 299 | (912) | (357) | 64 | 605 | (293) | (1,205) | (865) | (800) | ||
| Foreign currency translation adjustment attributable to noncontrolling interest | (10) | 57 | 302 | (182) | 8 | 47 | (174) | 128 | (205) | 476 | ||
| Total comprehensive income (loss) attributable to Soho House & Co Inc. | $ (33,927) | $ (37,124) | $ (29,316) | $ (18,470) | $ (24,452) | $ (71,051) | $ (42,922) | $ (72,238) | $ (155,825) | $ (176,131) | ||
Revision of Prior Period Financial Statements - Consolidated Statement of Changes in Shareholders' Deficit Loss (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 29, 2024 |
Jun. 30, 2024 |
Mar. 31, 2024 |
Oct. 01, 2023 |
Jul. 02, 2023 |
Apr. 02, 2023 |
Jun. 30, 2024 |
Jul. 02, 2023 |
Sep. 29, 2024 |
Oct. 01, 2023 |
Dec. 31, 2023 |
Jan. 01, 2023 |
|
| Beginning Balance | $ (234,210) | $ (197,297) | $ (167,153) | $ (50,670) | $ (38,120) | $ (18,883) | $ (167,153) | $ (18,883) | $ (167,153) | $ (18,883) | $ (18,883) | |
| Net income (loss) | 718 | (30,205) | (41,858) | (48,433) | (2,176) | (17,369) | (71,345) | (67,978) | ||||
| Distributions to noncontrolling interests | (2,243) | (1,454) | (390) | |||||||||
| Shares repurchased | (12,688) | (4,708) | (12,000) | |||||||||
| Share-based compensation, net of tax | 3,115 | 3,472 | 7,336 | 4,096 | 5,381 | 5,677 | ||||||
| Net change in cumulative translation adjustment | (29,785) | (4,018) | 4,378 | 19,727 | (15,755) | (7,155) | ||||||
| Ending Balance | (275,093) | (234,210) | (197,297) | (87,280) | (50,670) | (38,120) | (234,210) | (50,670) | (275,093) | (87,280) | (167,153) | $ (18,883) |
| Common Stock [Member] | ||||||||||||
| Beginning Balance | 2,071 | 2,068 | 2,057 | 2,044 | 2,041 | 2,037 | 2,057 | 2,037 | 2,057 | 2,037 | 2,037 | |
| Share-based compensation, net of tax | 6 | 3 | 11 | 8 | 3 | 4 | ||||||
| Ending Balance | 2,077 | 2,071 | 2,068 | 2,052 | 2,044 | 2,041 | 2,071 | 2,044 | 2,077 | 2,052 | 2,057 | 2,037 |
| Additional Paid-in Capital [Member] | ||||||||||||
| Beginning Balance | 1,242,735 | 1,239,266 | 1,231,941 | 1,224,137 | 1,218,759 | 1,213,086 | 1,231,941 | 1,213,086 | 1,231,941 | 1,213,086 | 1,213,086 | |
| Share-based compensation, net of tax | 3,109 | 3,469 | 7,325 | 4,088 | 5,378 | 5,673 | ||||||
| Ending Balance | 1,245,844 | 1,242,735 | 1,239,266 | 1,228,225 | 1,224,137 | 1,218,759 | 1,242,735 | 1,224,137 | 1,245,844 | 1,228,225 | 1,231,941 | 1,213,086 |
| Accumulated Deficit [Member] | ||||||||||||
| Beginning Balance | (1,447,990) | (1,418,091) | (1,376,532) | (1,265,827) | (1,263,294) | (1,245,989) | (1,376,532) | (1,245,989) | (1,376,532) | (1,245,989) | (1,245,989) | |
| Net income (loss) | 175 | (29,899) | (41,559) | (49,345) | (2,533) | (17,305) | ||||||
| Ending Balance | (1,447,815) | (1,447,990) | (1,418,091) | (1,315,172) | (1,265,827) | (1,263,294) | (1,447,990) | (1,265,827) | (1,447,815) | (1,315,172) | (1,376,532) | (1,245,989) |
| Accumulated Other Comprehensive Income (Loss) [Member] | ||||||||||||
| Beginning Balance | 30,048 | 34,076 | 29,641 | 31,839 | 47,776 | 54,923 | 29,641 | 54,923 | 29,641 | 54,923 | 54,923 | |
| Net change in cumulative translation adjustment | (30,181) | (4,028) | 4,435 | 20,029 | (15,937) | (7,147) | ||||||
| Ending Balance | (133) | 30,048 | 34,076 | 51,868 | 31,839 | 47,776 | 30,048 | 31,839 | (133) | 51,868 | 29,641 | 54,923 |
| Treasury Stock [Member] | ||||||||||||
| Beginning Balance | (66,708) | (62,000) | (62,000) | (50,000) | (50,000) | (50,000) | (62,000) | (50,000) | (62,000) | (50,000) | (50,000) | |
| Shares repurchased | (12,688) | (4,708) | (12,000) | |||||||||
| Ending Balance | (79,396) | (66,708) | (62,000) | (62,000) | (50,000) | (50,000) | (66,708) | (50,000) | (79,396) | (62,000) | (62,000) | (50,000) |
| Total Shareholders' Equity Attributable to Soho House & Co Inc. [Member] | ||||||||||||
| Beginning Balance | (239,844) | (204,681) | (174,893) | (57,807) | (44,718) | (25,943) | (174,893) | (25,943) | (174,893) | (25,943) | (25,943) | |
| Net income (loss) | 175 | (29,899) | (41,559) | (49,345) | (2,533) | (17,305) | ||||||
| Shares repurchased | (12,688) | (4,708) | (12,000) | |||||||||
| Share-based compensation, net of tax | 3,115 | 3,472 | 7,336 | 4,096 | 5,381 | 5,677 | ||||||
| Net change in cumulative translation adjustment | (30,181) | (4,028) | 4,435 | 20,029 | (15,937) | (7,147) | ||||||
| Ending Balance | (279,423) | (239,844) | (204,681) | (95,027) | (57,807) | (44,718) | (239,844) | (57,807) | (279,423) | (95,027) | (174,893) | (25,943) |
| Noncontrolling Interest [Member] | ||||||||||||
| Beginning Balance | 5,634 | 7,384 | 7,740 | 7,137 | 6,598 | 7,060 | 7,740 | 7,060 | 7,740 | 7,060 | 7,060 | |
| Net income (loss) | 543 | (306) | (299) | 912 | 357 | (64) | ||||||
| Distributions to noncontrolling interests | (2,243) | (1,454) | (390) | |||||||||
| Net change in cumulative translation adjustment | 396 | 10 | (57) | (302) | 182 | (8) | ||||||
| Ending Balance | 4,330 | 5,634 | 7,384 | 7,747 | 7,137 | 6,598 | 5,634 | 7,137 | 4,330 | 7,747 | 7,740 | 7,060 |
| As Previously Reported [Member] | ||||||||||||
| Beginning Balance | (225,819) | (185,394) | (150,627) | (45,803) | (33,138) | (15,376) | (150,627) | (15,376) | (150,627) | (15,376) | (15,376) | 182,192 |
| Net income (loss) | (34,175) | (46,339) | (41,450) | (2,287) | (16,016) | (80,514) | (18,303) | (59,753) | (117,088) | (219,780) | ||
| Distributions to noncontrolling interests | (1,454) | (390) | (390) | (1,206) | ||||||||
| Shares repurchased | (4,708) | (12,000) | (12,000) | (50,000) | ||||||||
| Share-based compensation, net of tax | 3,472 | 7,336 | 4,096 | 5,381 | 5,677 | 18,875 | 26,207 | |||||
| Additional IPO costs | (269) | |||||||||||
| Net change in cumulative translation adjustment | (3,560) | 4,236 | 19,591 | (15,759) | (7,033) | (24,648) | 47,480 | |||||
| Ending Balance | (225,819) | (185,394) | (75,566) | (45,803) | (33,138) | (225,819) | (45,803) | (75,566) | (150,627) | (15,376) | ||
| As Previously Reported [Member] | Accumulated Deficit [Member] | ||||||||||||
| Beginning Balance | (1,440,274) | (1,406,405) | (1,360,365) | (1,261,008) | (1,258,364) | (1,242,412) | (1,360,365) | (1,242,412) | (1,360,365) | (1,242,412) | (1,242,412) | (1,021,832) |
| Net income (loss) | (33,869) | (46,040) | (42,362) | (2,644) | (15,952) | (117,953) | (220,580) | |||||
| Ending Balance | (1,440,274) | (1,406,405) | (1,303,370) | (1,261,008) | (1,258,364) | (1,440,274) | (1,261,008) | (1,303,370) | (1,360,365) | (1,242,412) | ||
| As Previously Reported [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | ||||||||||||
| Beginning Balance | 30,518 | 34,088 | 30,000 | 31,887 | 47,828 | 54,853 | 30,000 | 54,853 | 30,000 | 54,853 | 54,853 | 6,897 |
| Net change in cumulative translation adjustment | (3,570) | 4,088 | 19,893 | (15,941) | (7,025) | (24,853) | 47,956 | |||||
| Ending Balance | 30,518 | 34,088 | 51,780 | 31,887 | 47,828 | 30,518 | 31,887 | 51,780 | 30,000 | 54,853 | ||
| As Previously Reported [Member] | Total Shareholders' Equity Attributable to Soho House & Co Inc. [Member] | ||||||||||||
| Beginning Balance | (231,658) | (192,983) | (158,367) | (52,940) | (39,736) | (22,436) | (158,367) | (22,436) | (158,367) | (22,436) | (22,436) | 176,134 |
| Net income (loss) | (33,869) | (46,040) | (42,362) | (2,644) | (15,952) | (117,953) | (220,580) | |||||
| Purchase of noncontrolling interests in connection with the Soho Restaurants Acquisition | (1,884) | |||||||||||
| Shares repurchased | (4,708) | (12,000) | (12,000) | (50,000) | ||||||||
| Share-based compensation, net of tax | 3,472 | 7,336 | 4,096 | 5,381 | 5,677 | 18,875 | 26,207 | |||||
| Additional IPO costs | (269) | |||||||||||
| Net change in cumulative translation adjustment | (3,570) | 4,088 | 19,893 | (15,941) | (7,025) | (24,853) | 47,956 | |||||
| Ending Balance | (231,658) | (192,983) | (83,313) | (52,940) | (39,736) | (231,658) | (52,940) | (83,313) | (158,367) | (22,436) | ||
| As Previously Reported [Member] | Noncontrolling Interest [Member] | ||||||||||||
| Beginning Balance | 5,839 | 7,589 | 7,740 | 7,137 | 6,598 | 7,060 | 7,740 | 7,060 | 7,740 | 7,060 | 7,060 | 6,058 |
| Net income (loss) | (306) | (299) | 912 | 357 | (64) | 865 | 800 | |||||
| Distributions to noncontrolling interests | (1,454) | (390) | (390) | (1,206) | ||||||||
| Purchase of noncontrolling interests in connection with the Soho Restaurants Acquisition | 1,884 | |||||||||||
| Shares repurchased | ||||||||||||
| Share-based compensation, net of tax | ||||||||||||
| Additional IPO costs | ||||||||||||
| Net change in cumulative translation adjustment | 10 | 148 | (302) | 182 | (8) | 205 | (476) | |||||
| Ending Balance | 5,839 | 7,589 | 7,747 | 7,137 | 6,598 | 5,839 | 7,137 | 7,747 | 7,740 | 7,060 | ||
| Adjustment [Member] | ||||||||||||
| Beginning Balance | (8,391) | (11,903) | (16,526) | (4,867) | (4,982) | (3,507) | (16,526) | (3,507) | (16,526) | (3,507) | (3,507) | |
| Net income (loss) | 3,970 | 4,481 | (6,983) | 111 | (1,353) | 8,451 | (1,242) | (8,225) | (12,590) | (3,577) | ||
| Net change in cumulative translation adjustment | (458) | 142 | 136 | 4 | (122) | (429) | 70 | |||||
| Ending Balance | (8,391) | (11,903) | (11,714) | (4,867) | (4,982) | (8,391) | (4,867) | (11,714) | (16,526) | (3,507) | ||
| Adjustment [Member] | Accumulated Deficit [Member] | ||||||||||||
| Beginning Balance | (7,716) | (11,686) | (16,167) | (4,819) | (4,930) | (3,577) | (16,167) | (3,577) | (16,167) | (3,577) | (3,577) | |
| Net income (loss) | 3,970 | 4,481 | (6,983) | 111 | (1,353) | (12,590) | (3,577) | |||||
| Ending Balance | (7,716) | (11,686) | (11,802) | (4,819) | (4,930) | (7,716) | (4,819) | (11,802) | (16,167) | (3,577) | ||
| Adjustment [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | ||||||||||||
| Beginning Balance | (470) | (12) | (359) | (48) | (52) | 70 | (359) | 70 | (359) | 70 | 70 | |
| Net change in cumulative translation adjustment | (458) | 347 | 136 | 4 | (122) | (429) | 70 | |||||
| Ending Balance | (470) | (12) | 88 | (48) | (52) | (470) | (48) | 88 | (359) | 70 | ||
| Adjustment [Member] | Total Shareholders' Equity Attributable to Soho House & Co Inc. [Member] | ||||||||||||
| Beginning Balance | (8,186) | (11,698) | (16,526) | (4,867) | (4,982) | (3,507) | (16,526) | (3,507) | (16,526) | (3,507) | (3,507) | |
| Net income (loss) | 3,970 | 4,481 | (6,983) | 111 | (1,353) | (12,590) | (3,577) | |||||
| Net change in cumulative translation adjustment | (458) | 347 | 136 | 4 | (122) | (429) | 70 | |||||
| Ending Balance | (8,186) | (11,698) | (11,714) | (4,867) | (4,982) | (8,186) | (4,867) | (11,714) | (16,526) | (3,507) | ||
| Adjustment [Member] | Noncontrolling Interest [Member] | ||||||||||||
| Beginning Balance | (205) | (205) | ||||||||||
| Net change in cumulative translation adjustment | (205) | |||||||||||
| Ending Balance | (205) | (205) | (205) | |||||||||
| As Revised [Member] | ||||||||||||
| Beginning Balance | (234,210) | (197,297) | (167,153) | (50,670) | (38,120) | (18,883) | (167,153) | (18,883) | (167,153) | (18,883) | (18,883) | 182,192 |
| Net income (loss) | (30,205) | (41,858) | (48,433) | (2,176) | (17,369) | (72,063) | (19,545) | (67,978) | (129,678) | (223,357) | ||
| Distributions to noncontrolling interests | (1,454) | (390) | (390) | (1,206) | ||||||||
| Shares repurchased | (4,708) | (12,000) | (12,000) | (50,000) | ||||||||
| Share-based compensation, net of tax | 3,472 | 7,336 | 4,096 | 5,381 | 5,677 | 18,875 | 26,207 | |||||
| Additional IPO costs | (269) | |||||||||||
| Net change in cumulative translation adjustment | (4,018) | 4,378 | 19,727 | (15,755) | (7,155) | (25,077) | 47,550 | |||||
| Ending Balance | (234,210) | (197,297) | (87,280) | (50,670) | (38,120) | (234,210) | (50,670) | (87,280) | (167,153) | (18,883) | ||
| As Revised [Member] | Accumulated Deficit [Member] | ||||||||||||
| Beginning Balance | (1,447,990) | (1,418,091) | (1,376,532) | (1,265,827) | (1,263,294) | (1,245,989) | (1,376,532) | (1,245,989) | (1,376,532) | (1,245,989) | (1,245,989) | (1,021,832) |
| Net income (loss) | (29,899) | (41,559) | (49,345) | (2,533) | (17,305) | (130,543) | (224,157) | |||||
| Net change in cumulative translation adjustment | ||||||||||||
| Ending Balance | (1,447,990) | (1,418,091) | (1,315,172) | (1,265,827) | (1,263,294) | (1,447,990) | (1,265,827) | (1,315,172) | (1,376,532) | (1,245,989) | ||
| As Revised [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | ||||||||||||
| Beginning Balance | 30,048 | 34,076 | 29,641 | 31,839 | 47,776 | 54,923 | 29,641 | 54,923 | 29,641 | 54,923 | 54,923 | 6,897 |
| Net change in cumulative translation adjustment | (4,028) | 4,435 | 20,029 | (15,937) | (7,147) | (25,282) | 48,026 | |||||
| Ending Balance | 30,048 | 34,076 | 51,868 | 31,839 | 47,776 | 30,048 | 31,839 | 51,868 | 29,641 | 54,923 | ||
| As Revised [Member] | Total Shareholders' Equity Attributable to Soho House & Co Inc. [Member] | ||||||||||||
| Beginning Balance | (239,844) | (204,681) | (174,893) | (57,807) | (44,718) | (25,943) | (174,893) | (25,943) | (174,893) | (25,943) | (25,943) | 176,134 |
| Net income (loss) | (29,899) | (41,559) | (49,345) | (2,533) | (17,305) | (130,543) | ||||||
| Purchase of noncontrolling interests in connection with the Soho Restaurants Acquisition | (1,884) | |||||||||||
| Shares repurchased | (4,708) | (12,000) | (12,000) | (50,000) | ||||||||
| Share-based compensation, net of tax | 3,472 | 7,336 | 4,096 | 5,381 | 5,677 | 18,875 | 26,207 | |||||
| Additional IPO costs | (269) | |||||||||||
| Net change in cumulative translation adjustment | (4,028) | 4,435 | 20,029 | (15,937) | (7,147) | (25,282) | 48,026 | |||||
| Ending Balance | (239,844) | (204,681) | (95,027) | (57,807) | (44,718) | (239,844) | (57,807) | (95,027) | (174,893) | (25,943) | ||
| As Revised [Member] | Noncontrolling Interest [Member] | ||||||||||||
| Beginning Balance | $ 5,634 | 7,384 | 7,740 | 7,137 | 6,598 | 7,060 | 7,740 | 7,060 | $ 7,740 | 7,060 | 7,060 | 6,058 |
| Net income (loss) | (306) | (299) | 912 | 357 | (64) | 865 | ||||||
| Distributions to noncontrolling interests | (1,454) | (390) | (390) | (1,206) | ||||||||
| Purchase of noncontrolling interests in connection with the Soho Restaurants Acquisition | 1,884 | |||||||||||
| Shares repurchased | ||||||||||||
| Share-based compensation, net of tax | ||||||||||||
| Additional IPO costs | ||||||||||||
| Net change in cumulative translation adjustment | 10 | (57) | (302) | 182 | (8) | 205 | (476) | |||||
| Ending Balance | $ 5,634 | $ 7,384 | $ 7,747 | $ 7,137 | $ 6,598 | $ 5,634 | $ 7,137 | $ 7,747 | $ 7,740 | $ 7,060 | ||
Revision of Prior Period Financial Statements - Consolidated Statement of Cash Flows (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 29, 2024 |
Jun. 30, 2024 |
Mar. 31, 2024 |
Oct. 01, 2023 |
Jul. 02, 2023 |
Apr. 02, 2023 |
Jun. 30, 2024 |
Jul. 02, 2023 |
Sep. 29, 2024 |
Oct. 01, 2023 |
Dec. 31, 2023 |
Jan. 01, 2023 |
|
| Cash flows from operating activities | ||||||||||||
| Net income (loss) | $ 718 | $ (30,205) | $ (41,858) | $ (48,433) | $ (2,176) | $ (17,369) | $ (71,345) | $ (67,978) | ||||
| Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities [Abstract] | ||||||||||||
| Depreciation and amortization | (26,017) | (24,503) | (76,642) | (74,162) | ||||||||
| Non-cash share-based compensation (Note 11) | 13,923 | 15,154 | ||||||||||
| Deferred tax expense (benefit) | (1,609) | (778) | ||||||||||
| (Gain) loss on sale of property and other, net | 236 | (7) | 62 | (596) | ||||||||
| Loss on impairment of intangible assets | 4,710 | 0 | ||||||||||
| Share of (profit) loss of equity method investments | (1,754) | (1,953) | (3,645) | (4,411) | ||||||||
| Amortization of debt issuance costs | 1,897 | 2,110 | ||||||||||
| Loss on debt extinguishment | 0 | 3,278 | ||||||||||
| PIK interest | 21,683 | 27,908 | ||||||||||
| Distributions from equity method investees | 796 | 162 | ||||||||||
| Foreign exchange loss (gain), net | (39,591) | 30,698 | (28,937) | (3,899) | ||||||||
| Changes in assets and liabilities: | ||||||||||||
| Accounts receivable | (12,553) | (22,073) | ||||||||||
| Inventories | (3,701) | 2,723 | ||||||||||
| Operating leases, net | (4,769) | 5,558 | ||||||||||
| Other operating assets | (5,299) | (25,156) | ||||||||||
| Deferred revenue | (2,778) | 11,892 | ||||||||||
| Accounts payable and accrued and other liabilities | 63,649 | 10,634 | ||||||||||
| Net cash provided by operating activities | 62,794 | 28,690 | ||||||||||
| Cash flows from investing activities | ||||||||||||
| Purchase of property and equipment | (55,833) | (49,631) | ||||||||||
| Proceeds from sale of assets | 0 | 1,368 | ||||||||||
| Purchase of intangible assets | (12,237) | (13,989) | ||||||||||
| Property and casualty insurance proceeds received | 0 | 148 | ||||||||||
| Repayment of capital investment from equity method investee | 10,695 | 0 | ||||||||||
| Net cash used in investing activities | (57,375) | (62,104) | ||||||||||
| Cash flows from financing activities | ||||||||||||
| Repayment of borrowings (Note 9) | (1,226) | (117,350) | ||||||||||
| Payment for debt extinguishment costs (Note 9) | 0 | (1,686) | ||||||||||
| Proceeds from borrowings (Note 9) | 1,105 | 140,000 | ||||||||||
| Payments for debt issuance costs | 0 | (2,822) | ||||||||||
| Principal payments on finance leases | (289) | (221) | ||||||||||
| Distributions to non-controlling interest | (3,697) | (390) | ||||||||||
| Purchase of treasury stock (Note 12) | (17,396) | (12,000) | ||||||||||
| Net cash (used in) provided by financing activities | (21,503) | 5,531 | ||||||||||
| Effect of exchange rate changes on cash and cash equivalents, and restricted cash | 1,599 | (97) | ||||||||||
| Net (decrease) increase in cash and cash equivalents, and restricted cash | (14,485) | (27,980) | ||||||||||
| Cash, cash equivalents and restricted cash | ||||||||||||
| Beginning of period | 161,106 | 188,608 | $ 161,106 | $ 188,608 | 161,106 | 188,608 | $ 188,608 | |||||
| End of period | 146,621 | 160,628 | 146,621 | 160,628 | 161,106 | $ 188,608 | ||||||
| As Previously Reported [Member] | ||||||||||||
| Cash flows from operating activities | ||||||||||||
| Net income (loss) | (34,175) | (46,339) | (41,450) | (2,287) | (16,016) | (80,514) | (18,303) | (59,753) | (117,088) | (219,780) | ||
| Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities [Abstract] | ||||||||||||
| Depreciation and amortization | (25,381) | (25,744) | (24,516) | (25,249) | (24,464) | (51,125) | (49,713) | (74,229) | (111,403) | (99,930) | ||
| Non-cash share-based compensation (Note 11) | 7,336 | 5,677 | 10,808 | 11,058 | 15,154 | 18,875 | 26,207 | |||||
| Deferred tax expense (benefit) | (393) | (683) | (2,174) | (836) | (778) | (607) | 237 | |||||
| (Gain) loss on sale of property and other, net | (109) | (65) | (7) | 92 | (681) | (174) | (589) | (596) | 1,038 | (390) | ||
| Loss on impairment of intangible assets | 4,710 | |||||||||||
| Impairment relating to long-lived assets | 0 | 47,455 | ||||||||||
| Provision for write-down of inventories | 6,827 | |||||||||||
| Share of (profit) loss of equity method investments | (1,514) | (377) | (1,953) | (1,587) | (871) | (1,891) | (2,458) | (4,411) | (1,900) | (3,941) | ||
| Amortization of debt issuance costs | 703 | 762 | 1,390 | 1,461 | 2,110 | 2,808 | 4,315 | |||||
| Loss on debt extinguishment | 0 | (3,278) | (3,278) | (3,278) | ||||||||
| PIK interest | 9,614 | 9,073 | 19,568 | 18,450 | 27,908 | 39,300 | 36,254 | |||||
| Distributions from equity method investees | 0 | 159 | 325 | 209 | 162 | 368 | 3,281 | |||||
| Foreign exchange loss (gain), net | 5,173 | 5,481 | 30,698 | (21,584) | (13,013) | 10,654 | (34,597) | (3,899) | (36,196) | 69,600 | ||
| Changes in assets and liabilities: | ||||||||||||
| Accounts receivable | (1,046) | (1,612) | 2,216 | (11,849) | (22,110) | (14,228) | (24,109) | |||||
| Inventories | (1,816) | 1,373 | (3,337) | (5,688) | 2,465 | (9,747) | (31,029) | |||||
| Operating leases, net | 1,749 | (1,125) | 4,760 | (2,428) | 5,558 | (2,194) | (25,190) | |||||
| Other operating assets | (26,478) | (18,385) | (18,377) | (24,770) | (25,212) | (17,952) | (38,667) | |||||
| Deferred revenue | (4,747) | 297 | 6,793 | 11,920 | 7,467 | 13,845 | 20,131 | |||||
| Accounts payable and accrued and other liabilities | 38,122 | (1,907) | 39,110 | 13,710 | 8,904 | 4,527 | 47,453 | |||||
| Net cash provided by operating activities | 7,488 | (12,488) | 44,992 | 8,281 | 63,000 | 30,476 | 49,812 | 14,682 | ||||
| Cash flows from investing activities | ||||||||||||
| Purchase of property and equipment | (21,004) | (12,010) | (46,804) | (33,313) | (50,440) | (67,763) | (73,729) | |||||
| Proceeds from sale of assets | 978 | 1,362 | 1,368 | 1,368 | 926 | |||||||
| Purchase of intangible assets | (4,587) | (4,674) | (8,961) | (8,823) | (13,989) | (17,966) | (21,672) | |||||
| Property and casualty insurance proceeds received | 148 | 148 | 338 | |||||||||
| Repayment of capital investment from equity method investee | 0 | (10,706) | ||||||||||
| Net cash used in investing activities | (25,591) | (15,706) | (45,059) | (40,774) | (62,913) | (84,213) | (94,137) | |||||
| Cash flows from financing activities | ||||||||||||
| Repayment of borrowings (Note 9) | (312) | (202) | (879) | (117,202) | (117,350) | (117,790) | (736) | |||||
| Payment for debt extinguishment costs (Note 9) | 0 | (1,686) | (1,686) | (1,686) | ||||||||
| Issuance of related party loans | 3,217 | |||||||||||
| Proceeds from borrowings (Note 9) | 0 | 140,000 | 140,000 | 140,000 | 105,795 | |||||||
| Payments for debt issuance costs | 0 | (2,822) | (2,822) | (2,822) | (1,860) | |||||||
| Principal payments on finance leases | (67) | (39) | (181) | (134) | (221) | (407) | (528) | |||||
| Principal payments on financing obligation | 0 | (153) | (1,578) | |||||||||
| Distributions to non-controlling interest | 0 | (390) | (1,454) | (390) | (390) | (390) | (1,206) | |||||
| Purchase of treasury stock (Note 12) | 0 | (4,708) | (12,000) | (12,000) | (50,000) | |||||||
| Proceeds from initial public offering, net of offering costs | (269) | |||||||||||
| Net cash (used in) provided by financing activities | (379) | (631) | (7,375) | 17,766 | 5,531 | 4,905 | 52,835 | |||||
| Effect of exchange rate changes on cash and cash equivalents, and restricted cash | (569) | 1,002 | (1,780) | 2,077 | (97) | 3,060 | (3,999) | |||||
| Net (decrease) increase in cash and cash equivalents, and restricted cash | (19,051) | (27,823) | (9,222) | (12,650) | (27,003) | (26,436) | (30,619) | |||||
| Cash, cash equivalents and restricted cash | ||||||||||||
| Beginning of period | 154,385 | 144,556 | 163,607 | 177,393 | 162,220 | 190,043 | 163,607 | 190,043 | 163,607 | 190,043 | 190,043 | 220,662 |
| End of period | 154,385 | 144,556 | 163,040 | 177,393 | 162,220 | 154,385 | 177,393 | 163,040 | 163,607 | 190,043 | ||
| Adjustment [Member] | ||||||||||||
| Cash flows from operating activities | ||||||||||||
| Net income (loss) | 3,970 | 4,481 | (6,983) | 111 | (1,353) | 8,451 | (1,242) | (8,225) | (12,590) | (3,577) | ||
| Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities [Abstract] | ||||||||||||
| Depreciation and amortization | 250 | 250 | 13 | 35 | 19 | 500 | 54 | 67 | 122 | 15 | ||
| Non-cash share-based compensation (Note 11) | 0 | 0 | 0 | 0 | 0 | 0 | ||||||
| Deferred tax expense (benefit) | (2,555) | 0 | (3,715) | 0 | 0 | 0 | 0 | |||||
| (Gain) loss on sale of property and other, net | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||
| Impairment relating to long-lived assets | 0 | 317 | ||||||||||
| Provision for write-down of inventories | 0 | |||||||||||
| Share of (profit) loss of equity method investments | 0 | 0 | 0 | (12) | 12 | 0 | 0 | 0 | 0 | 0 | ||
| Amortization of debt issuance costs | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||
| Loss on debt extinguishment | 0 | 0 | 0 | 0 | ||||||||
| PIK interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||
| Distributions from equity method investees | 0 | 0 | 0 | 0 | 0 | 0 | ||||||
| Foreign exchange loss (gain), net | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||
| Changes in assets and liabilities: | ||||||||||||
| Accounts receivable | (110) | 90 | 640 | 226 | (37) | (421) | (171) | |||||
| Inventories | 13 | 61 | 88 | 305 | 258 | 4,282 | 1,418 | |||||
| Operating leases, net | 291 | 20 | 4,169 | 0 | 279 | 0 | ||||||
| Other operating assets | 55 | (248) | (373) | (597) | 56 | 958 | (104) | |||||
| Deferred revenue | (2,194) | (2,455) | (5,015) | (2,079) | 4,425 | 2,587 | 2,852 | |||||
| Accounts payable and accrued and other liabilities | (1,030) | (1,742) | (6,541) | 2,489 | 1,730 | 1,044 | 2,482 | |||||
| Net cash provided by operating activities | (1,299) | (724) | (2,796) | (952) | (1,786) | (2,824) | (2,819) | |||||
| Cash flows from investing activities | ||||||||||||
| Purchase of property and equipment | (1,298) | (174) | (1,297) | (109) | (809) | (1,822) | (1,384) | |||||
| Proceeds from sale of assets | 0 | 0 | 0 | 0 | 0 | |||||||
| Purchase of intangible assets | (7) | 0 | (14) | 0 | 0 | (28) | 0 | |||||
| Property and casualty insurance proceeds received | 0 | 0 | 0 | |||||||||
| Repayment of capital investment from equity method investee | 0 | 0 | ||||||||||
| Net cash used in investing activities | 1,305 | 174 | 1,311 | 109 | 809 | 1,850 | 1,384 | |||||
| Cash flows from financing activities | ||||||||||||
| Repayment of borrowings (Note 9) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||
| Payment for debt extinguishment costs (Note 9) | 0 | 0 | 0 | 0 | ||||||||
| Issuance of related party loans | 0 | |||||||||||
| Proceeds from borrowings (Note 9) | 0 | 1,105 | 0 | 0 | 0 | 0 | ||||||
| Payments for debt issuance costs | 0 | 0 | 0 | 0 | 0 | |||||||
| Principal payments on finance leases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||
| Principal payments on financing obligation | 0 | (153) | 0 | |||||||||
| Distributions to non-controlling interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||
| Purchase of treasury stock (Note 12) | 0 | 0 | 0 | 0 | 0 | |||||||
| Proceeds from initial public offering, net of offering costs | 0 | |||||||||||
| Net cash (used in) provided by financing activities | 0 | 0 | 1,258 | 0 | 0 | 0 | 0 | |||||
| Effect of exchange rate changes on cash and cash equivalents, and restricted cash | (60) | 0 | 1 | 0 | 0 | (92) | 0 | |||||
| Net (decrease) increase in cash and cash equivalents, and restricted cash | (54) | (550) | (226) | (843) | (977) | (1,066) | (1,435) | |||||
| Cash, cash equivalents and restricted cash | ||||||||||||
| Beginning of period | (2,727) | (2,555) | (2,501) | (2,278) | (1,985) | (1,435) | (2,501) | (1,435) | (2,501) | (1,435) | (1,435) | 0 |
| End of period | (2,727) | (2,555) | (2,412) | (2,278) | (1,985) | (2,727) | (2,278) | (2,412) | (2,501) | (1,435) | ||
| As Revised [Member] | ||||||||||||
| Cash flows from operating activities | ||||||||||||
| Net income (loss) | (30,205) | (41,858) | (48,433) | (2,176) | (17,369) | (72,063) | (19,545) | (67,978) | (129,678) | (223,357) | ||
| Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities [Abstract] | ||||||||||||
| Depreciation and amortization | (25,131) | (25,494) | (24,503) | (25,214) | (24,445) | (50,625) | (49,659) | (74,162) | (111,281) | (99,915) | ||
| Non-cash share-based compensation (Note 11) | 7,336 | 5,677 | 10,808 | 11,058 | 15,154 | 18,875 | 26,207 | |||||
| Deferred tax expense (benefit) | (2,948) | (683) | (5,889) | (836) | (778) | (607) | 237 | |||||
| (Gain) loss on sale of property and other, net | (109) | (65) | (7) | 92 | (681) | (174) | (589) | (596) | 1,038 | (390) | ||
| Loss on impairment of intangible assets | 4,710 | |||||||||||
| Impairment relating to long-lived assets | 0 | 47,772 | ||||||||||
| Provision for write-down of inventories | 0 | 6,827 | ||||||||||
| Share of (profit) loss of equity method investments | (1,514) | (377) | (1,953) | (1,599) | (859) | (1,891) | (2,458) | (4,411) | (1,900) | (3,941) | ||
| Amortization of debt issuance costs | 703 | 762 | 1,390 | 1,461 | 2,110 | 2,808 | 4,315 | |||||
| Loss on debt extinguishment | 0 | (3,278) | (3,278) | (3,278) | ||||||||
| PIK interest | 9,614 | 9,073 | 19,568 | 18,450 | 27,908 | 39,300 | 36,254 | |||||
| Distributions from equity method investees | 0 | 159 | 325 | 209 | 162 | 368 | 3,281 | |||||
| Foreign exchange loss (gain), net | 5,173 | 5,481 | 30,698 | (21,584) | (13,013) | 10,654 | (34,597) | (3,899) | (36,196) | 69,600 | ||
| Changes in assets and liabilities: | ||||||||||||
| Accounts receivable | (1,156) | (1,522) | 2,856 | (11,623) | (22,073) | (13,807) | (24,280) | |||||
| Inventories | (1,803) | 1,434 | (3,249) | (5,383) | 2,723 | (5,465) | (29,611) | |||||
| Operating leases, net | 2,040 | (1,105) | 8,929 | (2,428) | 5,558 | (1,915) | (25,190) | |||||
| Other operating assets | (26,423) | (18,633) | (18,750) | (25,367) | (25,156) | (16,994) | (38,771) | |||||
| Deferred revenue | (6,941) | 2,752 | 1,778 | 9,841 | 11,892 | 16,432 | 17,279 | |||||
| Accounts payable and accrued and other liabilities | 37,092 | (3,649) | 32,569 | 16,199 | 10,634 | 5,571 | 49,935 | |||||
| Net cash provided by operating activities | 6,189 | (13,212) | 42,196 | 7,329 | 28,690 | 46,988 | 11,863 | |||||
| Cash flows from investing activities | ||||||||||||
| Purchase of property and equipment | (19,706) | (11,836) | (45,507) | (33,204) | (49,631) | (65,941) | (72,345) | |||||
| Proceeds from sale of assets | 978 | 1,362 | 1,368 | 1,368 | 926 | |||||||
| Purchase of intangible assets | (4,580) | (4,674) | (8,947) | (8,823) | (13,989) | (17,938) | (21,672) | |||||
| Property and casualty insurance proceeds received | 148 | 148 | 338 | |||||||||
| Repayment of capital investment from equity method investee | 0 | (10,706) | ||||||||||
| Net cash used in investing activities | (24,286) | (15,532) | (43,748) | (40,665) | (62,104) | (82,363) | (92,753) | |||||
| Cash flows from financing activities | ||||||||||||
| Repayment of borrowings (Note 9) | (312) | (202) | (879) | (117,202) | (117,350) | (117,790) | (736) | |||||
| Payment for debt extinguishment costs (Note 9) | 0 | (1,686) | (1,686) | (1,686) | ||||||||
| Issuance of related party loans | 3,217 | |||||||||||
| Proceeds from borrowings (Note 9) | 0 | 1,105 | 140,000 | 140,000 | 140,000 | 105,795 | ||||||
| Payments for debt issuance costs | 0 | (2,822) | (2,822) | (2,822) | (1,860) | |||||||
| Principal payments on finance leases | (67) | (39) | (181) | (134) | (221) | (407) | (528) | |||||
| Principal payments on financing obligation | 0 | 0 | (1,578) | |||||||||
| Distributions to non-controlling interest | 0 | (390) | (1,454) | (390) | (390) | (390) | (1,206) | |||||
| Purchase of treasury stock (Note 12) | 0 | (4,708) | (12,000) | (12,000) | (50,000) | |||||||
| Proceeds from initial public offering, net of offering costs | (269) | |||||||||||
| Net cash (used in) provided by financing activities | (379) | (631) | (6,117) | 17,766 | 5,531 | 4,905 | 52,835 | |||||
| Effect of exchange rate changes on cash and cash equivalents, and restricted cash | (629) | 1,002 | (1,779) | 2,077 | (97) | 2,968 | (3,999) | |||||
| Net (decrease) increase in cash and cash equivalents, and restricted cash | (19,105) | (28,373) | (9,448) | (13,493) | (27,980) | (27,502) | (32,054) | |||||
| Cash, cash equivalents and restricted cash | ||||||||||||
| Beginning of period | $ 151,658 | 142,001 | 161,106 | 175,115 | 160,235 | 188,608 | 161,106 | 188,608 | $ 161,106 | 188,608 | 188,608 | 220,662 |
| End of period | $ 151,658 | $ 142,001 | $ 160,628 | $ 175,115 | $ 160,235 | $ 151,658 | $ 175,115 | $ 160,628 | $ 161,106 | $ 188,608 | ||
Subsequent Events (Additional Information) (Details) - Common Class A [Member] - shares |
Sep. 30, 2024 |
Sep. 29, 2024 |
Dec. 31, 2023 |
|---|---|---|---|
| Subsequent Event [Line Items] | |||
| Common stock, Shares issued | 66,186,815 | 64,208,851 | |
| Stock Appreciation Rights (SARs) | |||
| Subsequent Event [Line Items] | |||
| Common stock, Shares issued | 949 |