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Chris Bryant

Soho House Doesn’t Want You Deciding Who Gets In

The hospitality company’s dual-class share structure comes as no surprise. New investors should push for better treatment.

Ready to party again.

Ready to party again.

Photographer: Jeff Schear/Getty Images

It takes chutzpah to list the company behind the British private members club Soho House when many of its trendy outposts were recently closed due to the pandemic and the debt-laden group has been bleeding cash.

Asking for money from new shareholders without granting equal voting rights takes particular gumption. The co-owners — billionaire Ron Burkle’s Yucaipa Companies LLC, entrepreneur Richard Caring and founder and Chief Executive Officer Nick Jones — plan to receive Class B stock that grants them ten votes per share, according to a prospectus published on Monday. This will allow them to continue to exercise majority voting power after the New York listing, meaning they retain a veto over key decisions and control board appointments.