The exterior of Soho House New York.
Neilson Barnard
World
Soho House Is Heading Toward Bankruptcy, a New Report Says
Soho House is crumbling—according to GlassHouse Research, at least.
The research company has published a scathing report claiming that Soho House & Co, Inc. has a “broken business model” and “terrible accounting.” The company added that SHCO’s “persistent lack of profits and rising debt levels” have put it in a “precarious situation” that could affect its future viability.
SHCO oversees chic hotels and private members’ clubs across the globe, including Soho House, the Ned, and Scorpios Beach Club. The chain floated in New York at $14 a share less than three years ago but recently dropped to just $5 a share, according to The Times. Once worth $2.8 billion, the business is now valued at $975 million.
GlassHouse Research alleges Soho House is expanding into less affluent cities and increasing the number of memberships, which in turn is reducing its exclusivity and affecting customer service. (It currently has 42 locations and 184,542 members, the report says.) It also purported the company is “hurtling toward financial ruin” and could end up going bankrupt like WeWork.
Shares of the company slumped by 30 percent in intraday trading on Wednesday before closing down 19 percent. Shares then surged 13 percent premarket on Thursday after SHCO spoke out against the report.
“Soho House & Co Inc. fundamentally rejects the recent report published by GlassHouse Research, which contains factual inaccuracies, analytical errors, and false and misleading statements, all designed to adversely impact the company’s stock price for the benefit of the short-seller,” SHCO said in a statement. “The company was not contacted for any comment or clarifications prior to the report being released.”
SHCO added that it is confident in the strength of its business and is focused on executing its strategy. It said that an independent committee was formed in the fall of 2023 to evaluate strategic transactions, some of which may result in Soho House going private.
SHCO plans to share its 2023 results on March 6. It will also issue guidance for this year, with the expectation of continued growth in membership, revenues, and cash flows. GlassHouse Research issued a rebuttal a few hours after the announcement.
“Soho House rejects our report, says it has inaccuracies/errors, but does not list anything,” the company tweeted. “The company also expects growth in its made-up metric adjusted EBITDA, but says nothing about free-cash-flow or GAAP EPS. So, there you have it, more years of actual losses.”
The proof will be in the results, we suppose.
Authors
Iranians mourning the country’s supreme leader condemned U.S. strikes that Washington called retaliation for Iran’s attacks on commercial ships in the Strait of Hormuz. At a tightly controlled state funeral in Mashhad — one of Iran’s most conservative cities, where opponents of the government were unlikely to be found in the crowd — mourners voiced defiance and called for revenge.
World
Beloved musicians among victims in deadly Bahamas plane crash; aviation authority grounds flights
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A devastating double-aviation crisis in the Bahamas, including a deadly North Andros plane crash and a separate aircraft fire on Friday, prompted the government to suspend flight operations for a local airline and launch a federal safety probe.
Shortly after 1 p.m. local time Friday, a Cessna 402 aircraft with Bahamian registration departed Lynden Pindling International Airport in Nassau bound for San Andros Airport.
The Aircraft Accident Investigation Authority (AAIA) said the plane “encountered difficulties” and crashed into bushes prior to landing.
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Authorities said 10 people were killed in a Bahamas plane crash on Friday. (Our News Bahamas via AP)
First responders, including the Royal Bahamas Police Force, Airport Authority and emergency medical personnel, rushed to the dense brush where the aircraft went down.
The Bahamas Musicians and Entertainers Union confirmed in a statement Saturday that 10 people died in the crash, including prominent members of the “The Pond Band” and a local DJ, whose artistry the union said “touched so many lives and helped to enrich the cultural fabric of The Bahamas.”
Bahamian Prime Minister Philip Brave Davis said a sole survivor was pulled from the wreckage.
“Ann and I are praying for the families who are now facing unbearable grief,” Davis wrote in a statement on X. “We are also praying for the survivor, whose recovery and care will remain in our thoughts.”
EIGHT BELIEVED DEAD AFTER B-52 CRASHES SHORTLY AFTER TAKEOFF FROM EDWARDS AIR FORCE BASE
The identities of those killed in the crash have not yet been released.
While the AAIA’s preliminary reports initially indicated seven people were on board, officials are still establishing the facts of the flight manifest.
Just hours before the fatal crash in North Andros, a Flamingo Air flight en route to Mayaguana was forced to turn back to Nassau after the pilot reported a concern, according to the Ministry of Energy, Utilities and Aviation (MoET).
After the aircraft landed and passengers safely deplaned, the plane caught fire on the runway.
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FILE – The Civil Aviation Authority Bahamas temporarily suspended Flamingo Air’s Air Operator Certificate following two aircraft incidents Friday. (iStock)
Following the two back-to-back safety incidents, the Civil Aviation Authority Bahamas (CAAB) temporarily suspended Flamingo Air’s Air Operator Certificate, according to MoET officials.
“The suspension is a precautionary safety measure and should not be treated as an adverse compliance action against Flamingo Air,” the agency wrote in a statement.
FILE – The plane crashed in North Andros on Friday after taking off from Lynden Pindling International Airport. (Melissa Alcena/Bloomberg via Getty Images)
Investigators from the AAIA and inspectors from the CAAB remain at the scene in North Andros as they work to determine what caused the Cessna 402 tragedy.
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Flamingo Air did not immediately respond to Fox News Digital’s request for comment.
The Associated Press contributed to this report.
Published on •Updated
Moldova’s pro-European President Maia Sandu nominated businessman Vasile Tofan on Saturday as the country’s next prime minister to replace Alexandru Munteanu, who resigned earlier this month over differences with the ruling majority.
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In a video posted to social media, Sandu said Tofan’s primary responsibility, after his candidacy is approved by the country’s parliament, would be to move the country further towards its path of “integration” into the European Union.
He should also “strengthen the resilience of state institutions and society”, and “revive the economy”, added Sandu.
The Moldovan businessman now has two weeks to secure parliamentary backing, a prospect he hopes to achieve after submitting his government programme and his ministerial cabinet nominations.
Tofan had been mentioned as a possible prime minister last year even before the appointment of Munteanu.
Igor Grosu, who heads Sandu’s Action and Solidarity Party (PAS) which won the last parliamentary elections in September, announced on Friday that he had selected him as his candidate to replace the outgoing premier.
He said Tofan shared “the same objectives” as him and PAS, specifying that “EU accession in the years to come, institutional reform and economic growth”, were among the biggest points of agreement.
The nominee for prime minister, who graduated Harvard Business School and turns 44 on Sunday, has a degree in public management from the Netherlands and is a managing partner at Horizon Capital, a private equity firm with assets primarily in Ukraine and Moldova.
He has also chaired the board of directors of Moldova’s Purcari winery, considered the crown jewel of the country’s winemaking sector.
Munteanu, another businessman who like Sandu previously worked at the World Bank, had been chosen to boost the economy and bring it closer to the EU, but turbulence with PAS saw him vacate his post less than a year into holding office.
He resigned on 3 July after less than eight months, stating that he could no longer carry out his mandate “according to (his) principles and (his) convictions”.
The EU last month officially launched a first round of accession negotiations with Ukraine and Moldova. Both countries became official EU candidate countries on 23 June 2022.
Additional sources • AFP
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