MCR Can’t Fund $200 Million Commitment to Take Soho House Private
Photo Credit: Exterior of a Soho House member's club. Soho House
Skift Take
MCR informed partners it can't deliver its $200M equity commitment by the expected closing date for Soho House's take-private deal. Plus, more hotel deal and developmen news.
The DJIA was up 270, the Nasdaq was down 104, the S&P 500 was up a point, the 10-year treasury yield was up .05 to 4.18%. It was a really weird day of trading. SHCO dropped 10%, way off the lows of the day. PK and BHR were both up 5% today.
Yesterday, Soho House stock closed at a new high, a couple of cents from the $9 a share price they are supposed to be taken private at. This morning, before the market opened, it was disclosed that MCR informed the other partners in the deal that they would not be able to deliver all of its $200 million equity commitment by the expected closing date. Once again, the stock traded strangely today as in pre-market the stock hung around $8.20 but then plunged during regular trading before recovering back near the pre-market levels. Ron Burkle’s Yucaipa Companies, which controls SHCO, is now scrambling to find replacement financing from MCR&
