Glasshouse initiates Soho House with 0c target, sees ‘same fate’ as WeWork

In a recently published report, Glasshouse Research said it was initiating Soho House (SHCO) with a target price of 0c. “Soho House, a company with a broken business model and terrible accounting, faces material headwinds regarding its future viability as a public company,” the report reads. Glasshouse also believes that Soho House’s “persistent lack of profits and rising debt levels puts the company in a precarious situation where they will need to continue to dump shares on investors as time goes on.” “Released in a public offering in 2021 under its previous name, Membership Collective Group, we believe this company, which was never profitable in its 28-year history, went public to dump on retail investors, all while its debt surged to insurmountable levels. Eerily similar to WeWork’s public offering, we believe SHCO will eventually meet the same fate as the now defunct co-working space.”