Third Point criticizes Soho House's sales process and seeks shareholder value
- Third Point, led by Dan Loeb, expressed support for Soho House's privatization but criticized the sales process for lacking transparency.
- Soho House's stock has significantly declined despite strong revenue growth, raising concerns for shareholders about management performance.
- The future of Soho House's potential acquisition depends on the response of Burkle and third-party bidders in light of Third Point's intervention.
In the United States, on January 29, 2025, Third Point, an activist investment firm led by Dan Loeb, sent a letter to the board of Soho House addressing its exploration of a take-private transaction. Third Point, which owns 9.89% of Soho House's Class A stock, commended the company's decision to go private but raised concerns regarding the fairness of the sales process and potential conflicts of interest involving chairman Ron Burkle. Soho House had received an offer from a consortium to acquire the company at approximately $9 per share, but Loeb criticized this for potentially benefiting only a few shareholders rather than maximizing value for all investors. The concerns arose following the company's public listing, during which revenue increased significantly from $561 million to $1.2 billion, despite a substantial drop in stock price from $14 to below $5 per share by mid-December. Soho House's executive chairman, Ron Burkle, owns 46.7% of the outstanding shares, allowing him considerable control over the company. With Burkle and the Yucaipa Companies backing the private offer, Third Point fears a lack of fair competition in the bidding process. Loeb framed the situation as an opaque arrangement that could lead to a