Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands |
12 Months Ended | ||
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Jan. 02, 2022 |
Jan. 03, 2021 |
Dec. 29, 2019 |
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| In House Operating Expenses [Member] | |||
| Operating cost and expenses | $ 53,568 | $ 46,386 | $ 36,278 |
| Other Operating Expenses [Member] | |||
| Operating cost and expenses | $ 23,831 | $ 23,416 | $ 20,861 |
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Jan. 02, 2022 |
Jan. 03, 2021 |
Dec. 29, 2019 |
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| Statement of Comprehensive Income [Abstract] | |||
| Net loss | $ (268,714) | $ (235,275) | $ (128,000) |
| Other comprehensive income (loss) | |||
| Foreign currency translation adjustment | 20,185 | (13,283) | (9,205) |
| Comprehensive loss | (248,529) | (248,558) | (137,205) |
| (Income) loss attributable to noncontrolling interest | 3,319 | 6,814 | 258 |
| Foreign currency translation adjustment attributable to noncontrolling interest | (31) | (122) | (47) |
| Total comprehensive loss attributable to Membership Collective Group Inc. | $ (245,241) | $ (241,866) | $ (136,994) |
Condensed Consolidated Statements of Cash Flows (Parenthetical) $ in Thousands |
12 Months Ended |
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Jan. 02, 2022
USD ($)
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| Statement of Cash Flows [Abstract] | |
| Common stock including deemed dividend upon conversion | $ 51,469 |
Nature of the Business |
12 Months Ended |
|---|---|
Jan. 02, 2022 | |
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
| Nature of Operations | 1. Nature of the Business
Membership Collective Group Inc. (“MCG”) is a global membership platform of physical and digital spaces that connects a vibrant, diverse group of members from across the world. These members use the MCG platform to both work and socialize, to connect, create, have fun and drive a positive change. Our members engage with us through our global portfolio of 33 Soho Houses, 9 Soho Works Clubs, The Ned in London, Scorpios Beach Club in Mykonos, Soho Home, our interiors and lifestyle retail brand, and our digital channels. Since the opening of our House in the Soho district of London in 1995, we have successfully identified the demand for a premium membership offering that caters to a progressive, creative and diverse global audience. As of January 2, 2022, we are a community of more than 155,800 creative and loyal individuals, each of whom pays an annual membership fee for access to a network of distinctive and carefully curated Houses, across North America, the United Kingdom, Europe and Asia, which serve as the cornerstone of our member experience. We enhance our member experience through our digital channels, including our app (the "SH.APP") and our website. Annually, we host thousands of physical and digital member events worldwide, spanning film, fashion, art, food and drink, well-being, work and music – and help our members forge connections to bring them closer together.
MCG was incorporated on February 10, 2021 under the laws of the State of Delaware. On July 19, 2021, we completed the initial public offering (“IPO”) of Class A of our common stock pursuant to a Registration Statement on Form S-1 (File No. 333-257206). Immediately prior to the closing of the IPO, we completed the following reorganization transactions (the "Reorganization Transactions") which resulted in changes to our common stock and issued and outstanding shares: • affiliates of The Yucaipa Companies, LLC, and Messrs. Ron Burkle, Nick Jones, and Richard Caring exchanged their equity interests in our predecessor entity, Soho House Holdings Limited (“SHHL”), for 141,500,385 shares of Class B common stock having an equivalent value; • the other equity holders of SHHL exchanged their equity interests for 14,935,193 shares of Class A common stock having an equivalent value.
In the IPO, we sold 30,567,918 shares of Class A common stock at a public offering price of $14.00 per share, including 567,918 shares of Class A common stock sold pursuant to the underwriters’ partial exercise of a “greenshoe” option to purchase additional shares of common stock to cover over-allotments. Immediately after the IPO, the senior convertible preference shares of SHHL were converted into 15,526,619 shares of Class A common stock.
The net proceeds from the IPO were $388 million, after deducting underwriting discounts and other offering costs. A portion of the proceeds from the IPO was used to repay outstanding indebtedness of $98 million in respect of our revolving credit facility and to pay the redemption price of the outstanding May 2016 redeemable preferred shares in an aggregate amount of $20 million.
During periods preceding the IPO that are presented in these consolidated financial statements, our business was conducted through SHHL, a Jersey, Channel Islands private limited company, and its subsidiaries and joint ventures. As a result of the Reorganization Transactions, SHHL became a wholly-owned subsidiary of MCG. Such transactions were accounted for as a reorganization and, therefore, the consolidated financial statements of MCG in periods after the IPO recognize the assets and liabilities received in the Reorganization Transactions at their historical carrying amounts, as reflected in the historical financial statements of SHHL. The consolidated entity presented is referred to herein as “MCG”, “we”, “us”, “our”, or the “Company”, as the context requires and unless otherwise noted |
Summary of Significant Accounting Policies |
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| Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies
Basis of Presentation
The consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”).The preparation of the financial statements in conformity with US GAAP requires the use of estimates, judgments and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenues and expenses during the periods presented. The Company's significant estimates relate to the valuation of financial instruments, equity method investments, the measurement of goodwill and intangible assets, contingent liabilities, income taxes, leases, long-lived assets and the period over which revenue from one-time member registration fees is recognized. Although the estimates have been prepared using management's best judgment and management believes that the estimates used are reasonable, actual results could differ from those estimates and such differences could be material.
We operate on a fiscal year calendar consisting of a 52-or 53-week period ending on the last Sunday in December or the first Sunday in January of the next calendar year. In a 52-week fiscal year, each quarter contains 13 weeks of operations; in a 53-week fiscal year, each of the first, second and third quarters includes 13 weeks of operations and the fourth quarter includes 14 weeks of operations.
Our 2019 fiscal year ended on December 29, 2019 ("Fiscal 2019"), our 2020 fiscal year ended on January 3, 2021 ("Fiscal 2020"), and our 2021 fiscal year ended on January 2, 2022 ("Fiscal 2021"). Fiscal 2019 was a 52-week year, Fiscal 2020 was a 53-week year, and Fiscal 2021 was a 52-week year.
The consolidated statement of operations and consolidated statement of comprehensive loss for the fiscal year ended January 2, 2022 includes the correction of an error related to the Company’s consolidated financial statements for the fiscal years ended January 3, 2021 and December 29, 2019. The error relates to the correction of a consolidating adjustment for foreign currency transaction gains of $13 million in the fiscal year ended January 3, 2021 and $4 million in the fiscal year ended December 29, 2019. The correction of this error is presented within other in the consolidated statement of operations for the fiscal year ended January 2, 2022 and within foreign currency translation adjustment in the consolidated statement of comprehensive loss for the fiscal year ended January 2, 2022.
Certain prior period amounts have been reclassified to conform to the current period presentation with no impact on previously reported net loss or cash flows, and no material impact on financial position.
Going Concern
The accompanying consolidated financial statements of the Company have been prepared assuming the Company will continue as a going concern. The going concern basis of presentation assumes that we will continue in operation for at least a period of 12 months after the date these financial statements are issued, and contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.
We have experienced net losses and significant cash outflows from cash used in operating activities over the past years as we develop our Houses. During the fiscal year ended January 2, 2022, the Company incurred a consolidated net loss of $269 million. During the fiscal year ended January 2, 2022, the Company had negative cash flow from operations of $127 million. As of January 2, 2022, the Company had an accumulated deficit balance of $1,022 million. As of January 2, 2022, the Company had a cash and cash equivalents balance of $213 million, and a restricted cash balance of $8 million.
In addition, the COVID-19 pandemic has continued to significantly impact our business and we have had to temporarily close some or all of our Houses, hotels and public restaurants, at different times due to the ongoing effects of the pandemic, which has and will continue to have an impact on our revenues. At the date of issuance of these consolidated financial statements, our Houses are open where possible.
In assessing the going concern basis of preparation of the consolidated financial statements for the fiscal year ended January 2, 2022, we have taken into consideration detailed cash flow forecasts for the Company, the Company’s forecast compliance with bank covenants, and the continued availability of committed and accessible working capital to the Company.
We have considered the impact of the COVID-19 pandemic on the Company and the resultant global economic uncertainties and have undertaken a re-assessment of the cash flow forecasts covering a period of at least 12 months from the date these financial statements are issued. Cash flow forecasts have been prepared based on a range of scenarios including, but not limited to, no further debt or equity funding, the timing of a full re-opening of our Houses staggered and/or deferred to the end of the calendar year, cost reductions, both limited and extensive, and a combination of these different scenarios. We have assessed the sensitivity analysis on cash flows, and in order to finance these cash flow forecasts, we have completed a series of positive financing events during Fiscal 2021, including issuance of new senior secured notes in an aggregate amount equal to $295 million, €62 million ($73 million) and £53 million ($73 million), issuance of $175 million of senior convertible preference shares, and completion of our IPO for net proceeds of $388 million after deducting underwriting discounts and other offering costs (including net proceeds from the partial exercise of the overallotment option). The senior secured notes include an option (which expires on March 31, 2022) for the Company to issue additional notes in an aggregate amount of up to $100 million on or prior to March 31, 2022. The Company exercised this option on March 9, 2022; see Note 23, Subsequent Events. The proceeds from the senior secured notes and senior convertible preference shares have been used to repay all amounts outstanding under the Permira Senior Facility and the US government-backed bank loan. The proceeds from the IPO were used to repay the outstanding principal balance of our revolving credit facility of $98 million, which remains in place as a source of additional liquidity if required, and to pay the redemption price of outstanding redeemable preferred shares, with the remainder to be used for general corporate purposes, including working capital needs. See Note 12, Debt, and Note 15, SHHL Redeemable Preferred Shares, for additional information.
We believe that the completed working capital events, our projected cash flows and the actions available to management to further control expenditure, as necessary, provide the Company with sufficient working capital (including cash and cash equivalents) to achieve its plans to recover from the impact of the pandemic, subject to the following key factors: • the continued access to Houses in a manner that is compliant with local laws and regulations, including the relaxing of mandatory capacity constraints, as well as anticipated demand; • the level of in-House sales activity (primarily sales of food and beverage) that, even after opening, may be subject to reduced capacity as a result of any on-going restrictions; • the continued high level of membership retention and renewals (which has been evidenced throughout the pandemic); and • the implementation of cost reduction measures that are aligned with the anticipated levels of capacity.
While the impact of lockdowns and other restrictions may re-occur beyond current expectations and impact the Company’s ability to keep open Houses and return to a level of operation consistent with pre COVID-19 within the timeframes assumed in management’s detailed cash flow forecasts, we believe that the Company has sufficient financial resources together with an established and cash generative business model, and access to capital.
Based on the available cash as a result of completed financing events discussed above, and the measures that have been put in place to control costs, we believe that the Company is able to continue in operational existence, meet its liabilities as they fall due, operate within its existing facilities, and meet all of its covenant requirements for a period of at least 12 months from the date these financial statements are issued.
Based on the above, the consolidated financial statements have been presented on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. Accordingly, we continue to adopt the going concern basis in preparing the consolidated financial statements for the fiscal year ended January 2, 2022.
Principles of Consolidation
The consolidated financial statements of the Company include the accounts of Membership Collective Group Inc. and its subsidiaries, as well as certain consolidated variable interest entities (“VIEs”) for which the Company is considered the primary beneficiary (see Note 4, Consolidated Variable Interest Entities). Other parties’ interests in entities that the Company consolidates are reported as noncontrolling interests within shareholders’ deficit. Net loss and each component of other comprehensive (loss) income are attributed to the owners of the Company and to any noncontrolling interests. All intra-company assets and liabilities, equity, income, expenses and cash flows are eliminated in full on consolidation.
Equity Method Investments
The Company’s equity method investments consist of investments in which the Company does not control the investee but can exert significant influence over the financial and operating policies, as well as joint ventures where there is joint control (and in both cases if the investee is a VIE, where the Company is not the primary beneficiary of the VIE). The ability to exert significant influence is generally considered to exist when the Company owns between 20% and 50% of voting equity securities of the investee, in the case of corporate entities.
When the Company sells an interest in a subsidiary which then becomes an equity method investment, the retained interest is remeasured at fair value.
Investments are initially recognized at cost when purchased for cash, or at the fair value of shares received when acquired. The investments are subsequently carried at cost adjusted for the Company’s share of net income or loss and other changes in comprehensive income (loss) of the joint venture, less any dividends or distributions received by the Company. The investments are presented as equity method investments in the consolidated balance sheets. Income or loss from these investments is recorded as a separate line item in the consolidated statements of operations. Intercompany profits or losses associated with the Company’s equity method investments are eliminated until realized by the investee in transactions with third parties. Where distributions from equity-method investees and the Company’s share of investee losses are in excess of the carrying amount of the investment (including, where applicable, advances made by the Company to the investee), after the Company’s equity-method investment balance is reduced to zero, additional losses are recognized to the extent that the Company has guaranteed the investee’s obligations or has otherwise incurred legal or constructive obligations or has made payments on behalf of the investee.
The Company considers whether its equity method investments are impaired when events or circumstances suggest that the carrying amount may not be recoverable. An impairment charge is recognized in the consolidated statements of operations for a decline in value that is determined to be other-than-temporary. Once a determination is made that an other-than-temporary impairment exists, the investment is written down to its fair value. There were no other-than-temporary impairments recorded during the fiscal years ended January 2, 2022, January 3, 2021, and December 29, 2019.
Variable Interest Entities
The Company analyzes its variable interests, including loans, guarantees, and equity investments, to determine if the entity in which the Company has a variable interest is a VIE. For those entities determined to be VIEs a quantitative and qualitative analysis is performed to determine if the Company will be deemed the primary beneficiary. The primary beneficiary of a VIE is defined as the variable interest holder that has a controlling financial interest in the VIE. A controlling financial interest is defined as one that has i) the power to direct the activities of the VIE that most significantly impact its economic performance and ii) the obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the VIE.
In evaluating whether the Company has the power to direct the activities of a VIE that most significantly impact its economic performance, the Company bases its qualitative analysis on its review of the design of the entity, its organizational structure including decision-making ability and the relevant development, ownership interest, operating, management and financial agreements. This evaluation requires consideration of all facts and circumstances relevant to decision-making that affect the entity’s future performance and the exercise of professional judgment in deciding which decision-making rights are most important.
The Company consolidates those entities in which it is determined to be the primary beneficiary. If the Company is not determined to be the primary beneficiary but can exercise significant influence over these entities, these investments are accounted for under the equity method of accounting.
Concentration of Credit Risk
Credit risk is the risk of loss from amounts owed by customers and financial counterparties. Credit risk can occur at multiple levels; as a result of broad economic conditions, challenges within specific sectors of the economy, or from issues affecting individual companies. Financial instruments that potentially subject the Company to credit risk consist of cash, cash equivalents, restricted cash, accounts receivable, and other receivables.
The Company maintains cash, cash equivalents, and restricted cash with major financial institutions. The Company’s cash, cash equivalents, and restricted cash consist of bank deposits held with banks that, at times, exceed federally insured limits. The Company limits its credit risk by dealing with counterparties that are considered to be of high credit quality.
Cash and Cash Equivalents
Cash and cash equivalents include cash on hand, demand deposits, and all highly liquid investments with original maturities, when purchased, of three months or less.
Restricted Cash
Restricted cash represents cash that is not available to the Company due to restrictions related to its use. As of January 2, 2022 and January 3, 2021, restricted cash related primarily to balances with the Company’s payments service provider, financing arrangements for the Soho Beach House in Miami, and security deposits.
The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown on the consolidated statements of cash flows.
Accounts Receivable and Allowance for Doubtful Accounts
Accounts receivable include amounts due from customers in connection with the Company’s in-house building service whereby the Company extends credit, generally without requiring collateral, based on its evaluation of the customer’s financial condition. Accounts receivable also include amounts due from customers, guests and members relating to services rendered. Any allowance for doubtful accounts includes management’s estimate of the amounts expected to be uncollectible on specific accounts receivable, taking into account the creditworthiness of the counterparty, the aging of the outstanding balance, and historical recoverability patterns. Allowance for doubtful accounts was $3 million as of January 2, 2022 and $3 million as of January 3, 2021.
While the Company has a concentration of credit risk in relation to certain customers, this risk is mitigated by payments on account and credit checks on customers. Typically, accounts receivable have terms ranging from 0-60 days and do not bear interest. As of January 2, 2022, there were two customers which individually accounted for more than 10% of trade receivables (16% and 10%); there were no customers which individually accounted for more than 10% of revenue during the fiscal year then ended. As of January 3, 2021, there was one customer which individually accounted for more than 10% of trade receivables (13%); there were no customers which individually accounted for more than 10% of revenue during the fiscal year then ended.
Inventories
Inventories are valued at the lower of cost or net realizable value and cost is determined using a weighted-average cost method. Inventories consist of raw materials, service stock and supplies (primarily food and beverage), and finished goods which are externally sourced. Raw materials and service stock and supplies totaled $8 million and $8 million as of January 2, 2022 and January 3, 2021, respectively. Finished goods totaled $22 million and $15 million as of January 2, 2022 and January 3, 2021, respectively. The Company records a reserve for obsolete or unusable inventory, where applicable. The reserve was zero and less than $1 million as of January 2, 2022 and January 3, 2021, respectively.
Property and Equipment
Property and equipment relate to buildings for owned Houses, leasehold improvements for leased Houses, fixtures and fittings and other office equipment. Property and equipment are recorded at cost, or if acquired in a business combination, at fair value as of the acquisition date, less accumulated depreciation. Costs of improvements that extend the economic life or improve service potential are capitalized. Capitalized costs are depreciated over the assets’ estimated useful lives. Costs for normal repairs and maintenance are expensed as incurred. The carrying amounts of assets sold or retired and the related accumulated depreciation are eliminated in the year of disposal, with resulting gains or losses included in (gain) loss on sale of property and other, net.
Depreciation is recorded using the straight-line method over the assets’ estimated useful lives, which are generally as follows:
Depreciation expense is included in depreciation and amortization in the accompanying consolidated statements of operations.
Assets under construction relate mainly to the build out of future Houses, are stated at cost and depreciation begins when the asset is placed in service. For property under construction, the Company capitalizes all specifically identifiable costs related to development activities, as well as interest costs incurred while activities necessary to get the property ready for its intended use are in progress. During the fiscal years ended January 2, 2022 and January 3, 2021, the capitalized interest was immaterial. During the fiscal year ended December 29, 2019, the Company capitalized interest totaling $4 million.
Impairment of Property and Equipment
The Company reviews its property and equipment for impairment indicators at each reporting date. Impairment losses are required to be recorded for long-lived assets to be held and used by the Company when indicators of impairment are present and the carrying value of the assets exceeds the future undiscounted cash flows estimated to be generated by those assets. When an asset group to be held and used by the Company is determined to be impaired, the related carrying amount of the asset is adjusted to its estimated fair value. Recoverability of long-lived assets is measured by comparison of (i) the carrying amount of assets to (ii) the future undiscounted cash flows that the assets are expected to generate over their remaining lives. If the carrying amount of the assets is not recoverable, the amount of impairment, if any, is measured as the difference between the carrying value and the fair value of the impaired assets. If the Company determines that the remaining useful life is shorter than originally estimated, it amortizes the remaining carrying value over the new shorter useful life. No impairment losses were recorded during the fiscal year ended January 2, 2022. Impairment losses were less than $1 million during each of the fiscal years ended January 3, 2021 and December 29, 2019.
Business Combinations
The Company accounts for its business combinations using the acquisition method of accounting. The consideration transferred in a business combination is measured as the aggregate of the acquisition date fair values of the assets transferred by the Company to the sellers and equity instruments issued. Transaction costs directly attributable to the acquisition are expensed as incurred. Identifiable tangible and intangible assets acquired and liabilities assumed are measured separately at their fair values as of the acquisition date, irrespective of the extent of any noncontrolling interests. The excess of (i) the total consideration transferred, fair value of the noncontrolling interests and acquisition date fair value of any previously held equity interest in the acquiree over (ii) the fair value of the identifiable net assets of the acquiree is recorded as goodwill. If the consideration transferred is less than the fair value of the net assets of the acquiree, the difference is recognized directly in the consolidated statements of operations as a gain. During the measurement period, which can be up to one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed. See Note 3, Acquisitions, for additional information.
Transactions between entities under common control are excluded from the scope of the business combinations guidance. The Company accounts for transfers of assets, net assets or equity interests between entities under common control prospectively at their carrying values.
Intangible Assets with Finite Useful Lives
The Company has certain finite lived intangible assets that were initially recorded at their fair values. These intangible assets consist primarily of brand names, membership lists, hotel management agreements, internally developed software and trademarks. Intangible assets with finite useful lives, which have a weighted-average life of 18 years, are amortized using the straight-line method over their estimated useful lives.
All finite lived intangible assets are reviewed for impairment when circumstances indicate that their carrying amounts may not be recoverable; for example, when there are material adverse changes in projected revenues or expenses, significant underperformance relative to historical or projected operating results, or significant negative industry or economic trends. The Company evaluates recoverability of a finite lived intangible asset by comparing its carrying value to its estimated fair value, which is determined through the income approach, the market approach or another appropriate method based on the circumstances. If a finite lived intangible asset’s estimated current fair value is less than its respective carrying value, the excess of the carrying value over the estimated fair value is recognized as an impairment loss in the consolidated statements of operations.
During Fiscal 2020, House closures and uncertainties surrounding re-opening procedures associated with the COVID-19 pandemic constituted a triggering event for testing whether intangible assets were impaired. The Company performed a quantitative assessment as of the first quarter of Fiscal 2020. No impairment losses were recorded during the fiscal years ended January 2, 2022, January 3, 2021, and December 29, 2019.
Costs incurred during the application development stage for internal-use software are capitalized. Capitalized website development costs and internal-use software costs are amortized using the straight-line amortization method over the estimated useful life of the applicable software.
Goodwill
In January 2012, affiliates of the Yucaipa Companies, LLC acquired 58.9% of the outstanding equity interests of the entity which subsequently became Soho House Holdings Limited through a series of transactions. The Acquisition was accounted for using the acquisition method of accounting, which resulted in a new basis for the assets acquired and liabilities assumed and the recognition of goodwill. In addition, the Company recognized goodwill as a result of the acquisition of a business in Mykonos, Greece during the fiscal year ended December 29, 2019, as well as the acquisition of a controlling interest in Soho House—Cipura (Miami), LLC ("Cipura") and the companies that together operate existing and future "The LINE" and "Saguaro" hotels in the United States during the fiscal year ended January 2, 2022. See Note 3, Acquisitions, for additional information.
Goodwill is not amortized, but instead is tested for impairment annually. The Company assesses goodwill for potential impairment on the first day of the fourth fiscal quarter, or during the year if an event or other circumstances indicate that the Company may not be able to recover the carrying amount of the net assets of the reporting unit. A reporting unit is an operating segment or one level below the operating segment level, which is referred to as a component. The Company identifies its reporting units by assessing whether components (i) have discrete financial information available; (ii) engage in business activities; and (iii) have a segment manager who regularly reviews the component’s operating results. Net assets and goodwill of acquired businesses are allocated to the reporting unit(s) associated with the acquired business based on the anticipated organizational structure of the combined entities. If two or more components are deemed economically similar, those components are aggregated into one reporting unit when performing the annual goodwill impairment review. As of January 2, 2022 and January 3, 2021, the Company had seven and five reporting units with a goodwill balance, respectively.
In evaluating goodwill for impairment, the Company may first assess qualitative factors to determine whether it is more likely than not (that is, a likelihood of more than 50%) that the fair value of a reporting unit is less than its carrying amount. Qualitative factors that the Company considers include, for example, macroeconomic and industry conditions, overall financial performance, and other relevant entity-specific events. If the Company bypasses the qualitative assessment or concludes that it is more likely than not that the fair value of a reporting unit is less than its carrying value, then a quantitative goodwill impairment test is performed to identify potential goodwill impairment and measure the amount of goodwill impairment that will be recognized, if any.
When performing the quantitative goodwill impairment test, the Company compares the estimated fair value of each of its reporting units with their respective carrying values. If the estimated fair value of a reporting unit exceeds its carrying amount, goodwill is not considered impaired. If, however, the estimated fair value of a reporting unit is less than its carrying amount, the excess of the carrying value of the reporting unit over its fair value is recognized as a goodwill impairment. When performing a quantitative goodwill impairment assessment, the estimated fair value of a reporting unit is calculated using the income approach and the market approach. For the income approach, the Company uses internally developed discounted cash flow models that include the following assumptions, among others: projections of revenues, expenses, and related cash flows based on assumed long-term growth rates and demand trends; expected net working capital and capital expenditure requirements; and estimated discount rates. For the market approach, the Company relies upon valuation multiples derived from stock prices and enterprise values of publicly-traded companies that are comparable to the reporting units being evaluated.
While the Company tests its goodwill for impairment at least annually, it will test its goodwill for impairment if an event occurs or circumstances change which are considered to be a triggering event that would more likely than not reduce a reporting unit’s fair value below its carrying amount. In Fiscal 2019, the Company performed a qualitative assessment for impairment on each reporting unit's goodwill and determined that no goodwill impairment existed. In Fiscal 2020, House closures and uncertainties surrounding re-opening procedures associated with the COVID-19 pandemic constituted a triggering event for testing whether goodwill was impaired. The Company performed a quantitative assessment as of the first quarter of Fiscal 2020 and determined that no goodwill impairment existed. As of the first day of the fourth quarter of Fiscal 2020, the Company performed a qualitative goodwill assessment and concluded it was more likely than not that the fair value of the Company’s reporting units which carry goodwill exceeds their respective carrying amounts. In Fiscal 2021, the Company performed a quantitative impairment assessment for two reporting units and a qualitative assessment for the remaining five reporting units; based on these assessments, the Company determined that no goodwill impairment existed.
Leases
The Company has entered into lease agreements for its Houses, hotels, restaurants, spas and other properties. The Company accounts for its leases under ASU 2016-02, Leases (Topic 842).
The Company determines the initial classification and measurement of its right-of-use assets and lease liabilities at the lease commencement date and thereafter, if the leases are modified. The lease term includes any renewal options and termination options that the Company is reasonably assured to exercise. The present value of lease payments is determined by using the interest rate implicit in the lease, if that rate is readily determinable; otherwise, the Company uses its incremental borrowing rate. The incremental borrowing rate is determined by using a portfolio approach based on the rate of interest that the Company would pay to borrow on a collateralized basis an amount equal to the lease payments for a similar term and in a similar economic environment.
Rent expense for operating leases is recognized on a straight-line basis over the reasonably assured lease term based on the total lease payments and is included in other in-house operating expenses and other operating expenses in the consolidated statements of operations.
The Company recognizes the amortization of the right-of-use asset for its finance leases on a straight-line basis over the reasonably assured lease term in depreciation and amortization in the consolidated statements of operations. The interest expense related to finance leases is recognized using the effective interest method and is included within interest expense, net.
For all leases, rent payments that are based on a fixed index or rate at the lease commencement date are included in the measurement of right-of-use assets and lease liabilities at the lease commencement date. Rent payments that vary based on the outcome of future indices, rates, or the Company’s revenues are expensed in the period incurred.
The Company has previously elected the practical expedient to not separate lease and non-lease components. The Company’s non-lease components are primarily related to property maintenance, which varies based on future outcomes, and thus is recognized in rent expense when incurred. In addition, the Company elected to exclude short-term leases, or leases with a term of 12 months or less that do not contain a purchase option that the Company is reasonably certain to exercise, from the right-of-use asset and lease liability balances.
As part of our overall plan to improve liquidity during the COVID-19 pandemic, the Company negotiated with certain lessors to defer or waive certain rent payments on leased buildings. Cash payment deferrals and waivers have been separately recorded in the period arrangements occurred, and therefore, there have been no remeasurements to the lease liabilities and right-of-use assets associated with the sites that received concessions. The Company accounted for the deferrals of lease payments as if there are no changes in the lease contract. Deferred amounts have been recognized in accounts payable and subsequent reversals will occur once the payments are made. As of January 2, 2022 and January 3, 2021, $12 million and $20 million, respectively, is recorded in accounts payable in the consolidated balance sheets related to deferred lease payments.
Sale Leaseback Transactions
The Company accounts for a transaction as a sale of an asset and a leaseback of that asset only if the buyer-lessor obtains control of the asset in accordance with the provisions of ASC 606, Revenue from Contracts with Customers (Topic 606). In these circumstances, the Company (as the seller-lessee) derecognizes the carrying amount of the asset, recognizes the transaction price for the sale, and accounts for the lease in accordance with Topic 842. When a sale and leaseback transaction does not qualify for sale accounting, the Company does not derecognize the underlying asset and accounts for the transaction as a financing obligation.
Debt Issuance Costs
Debt issuance costs relate to the Company’s debt instruments. These costs are reflected as a deduction from the carrying amount of the related debt instrument, with the exception of the Company’s revolving credit facility, for which debt issuance costs are reflected as a current asset following repayment in full of the amount drawn under the facility during the fiscal year ended January 2, 2022. Debt issuance costs are deferred and amortized over the term of the related debt instrument using the effective interest method. As of January 2, 2022 and January 3, 2021, these costs totaled $13 million (including $1 million presented within prepaid expenses and other current assets) and $9 million, respectively. Amortization expense associated with debt issuance costs (excluding write-offs recognized upon extinguishment of debt), which is included within interest expense, net, totaled $5 million, $6 million, and $6 million for the fiscal years ended January 2, 2022, January 3, 2021 and December 29, 2019, respectively.
Fair Value Measurements
The Company has various financial instruments measured at fair value on a periodic basis for disclosure purposes. See Note 13, Fair Value Measurements, for further information. The Company also applies the fair value measurement framework to various nonrecurring measurements for its financial and nonfinancial assets and liabilities.
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date (an exit price). The Company uses the three-level valuation hierarchy for classification of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. Inputs refer broadly to the assumptions that market participants would use in pricing an asset or liability and may be considered observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from independent sources. Unobservable inputs are inputs that reflect the Company’s assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The three-tier hierarchy of inputs is summarized below. Level 1 Valuation is based upon quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 Valuation is based upon quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the instrument. Level 3 Valuation is based upon other unobservable inputs that are significant to the fair value measurement.
The classification of assets and liabilities within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement in its entirety. Proper classification of fair value measurements within the valuation hierarchy is considered each reporting period. The use of different market assumptions or estimation methods may have a material effect on the estimated fair value amounts.
Revenue Recognition
A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account for purposes of recognizing revenue. The majority of the Company’s contracts have a single performance obligation as the promise to transfer the individual goods or services is not separately identifiable from other promises in the contracts and, therefore, not distinct. There is no variable consideration or obligations for returns or refunds, and no other related obligations in the Company’s contracts.
Payment terms and conditions vary by contract type and may include a requirement of payment up to 45 days (as described further below). In instances where the timing of revenue recognition differs from the timing of invoicing, the Company has determined its contracts do not include a significant financing component.
The Company’s revenues are primarily derived from the following sources and are recognized when or as the Company satisfies a performance obligation by transferring a good or service to a customer.
Membership Revenues
Membership revenues are comprised of annual membership fees and one-time initial registration fees.
Memberships are offered on an annual basis for access to Houses. Annual membership fees are paid annually, quarterly or monthly and are deferred and recognized over the term to which the payment relates. Revenue is measured based on the amount invoiced for the member’s annual membership fee. The current portion of deferred revenue relates primarily to annual membership fees. There is no non-current deferred revenue relating to annual membership fees.
One-time registration fees are non-refundable and are invoiced to the member on their acceptance of membership. Such registration fees are recognized as non-current deferred revenue upon payment, and are recognized as revenue over the estimated average membership life of 20 years. Registration fees of $2 million, $1 million, and $1 million were recognized as revenue in the fiscal years ended January 2, 2022, January 3, 2021, and December 29, 2019 respectively. As of January 2, 2022 and January 3, 2021, current deferred revenue related to one-time registration fees totaled $2 million and $1 million, respectively, and non-current deferred revenue related to such fees totaled $28 million and $24 million, respectively.
In-House Revenues
In-House revenues represent all revenues generated within our Houses and primarily include revenues from food and beverage, accommodation, and spa products and treatments.
Revenue from food and beverage sales in the Company’s Houses is measured based on the amount invoiced for food and beverage purchased by the customer. Revenues are recognized when the goods are consumed. Payment is collected from the customer at the same time as the performance obligation is satisfied and, therefore, there are no material receivables, contract assets or contract liabilities related to food and beverage sales.
Hotel accommodation revenue is recognized when the rooms are occupied. Revenue is measured based on the amount invoiced for the room as specified in the contract when the room booking is made. Deposits received in advance of the hotel accommodation are deferred as contract liabilities and recognized as revenue when the customer occupies the room. As of January 2, 2022 and January 3, 2021, advance deposits of $9 million and $7 million, respectively, were recorded as accrued liabilities on the consolidated balance sheets.
Retail sales represent sales of goods and services, including from spas and cinema properties. Revenue from these transactions is recognized at the point in time when the goods and services have been delivered or rendered. Sales made online include shipping revenue and are recognized on dispatch to the customer. Payment terms with respect to retail sales and wholesale sales range from immediate payment at point of sale up to approximately 45 days. Amounts invoiced to customers for completed sales are recorded within accounts receivable on the consolidated balance sheets.
Other Revenues
Other revenues include all revenues that are not generated within our Houses. This includes revenues from Scorpios, Soho Works and our stand-alone restaurants, procurement fees from Soho House Design ("SHD"), Soho Home and Cowshed retail products and other revenues from products and services that we provide outside of our Houses, as well as management fees from the Ned. For further information regarding the Company’s relationship with The Ned, refer to Note 4, Consolidated Variable Interest Entities.
Revenue recognized from Soho House Design totaled $13 million, $14 million, and $23 million for the fiscal years ended January 2, 2022, January 3, 2021, and December 29, 2019, respectively. During the fiscal year ended December 29, 2019, Soho House Design ceased providing build-out services as a result of the Company’s decision to shift strategic focus to the higher-margin design services. Some of SHD’s build-out and design services are provided as part of the Company’s in-house development activities (including to certain related parties as described in Note 22, Related Parties), which do not generate revenues from third parties. The percentage of Soho House Design revenues relating to build-out and design contracts from unaffiliated third parties was 7% and 11% during the fiscal years ended January 2, 2022 and December 29, 2019, respectively. Soho House Design’s revenues relating to build-out and design contracts from unaffiliated third parties were immaterial during the fiscal year ended January 3, 2021.
Build-out and design contracts consist of a single performance obligation which is satisfied over time as the design and build work is completed and verified by third party contractors against specified contract milestones (output method of progress). The Company invoices for the work completed in accordance with the payment terms of the customer’s contract.
Sponsorship income is recognized upon the successful completion of the related event. Food and beverage sales from restaurants not located in one of the Company’s Houses or hotels are recognized in a manner similar to In-House food and beverage sales, as previously described.
Practical Expedients
The Company applies the practical expedient not to disclose the amount of the transaction price allocated to the remaining performance obligations and an explanation of when the Company expects to recognize that amount as revenue. In addition, the Company applies the practical expedient and does not disclose information about remaining performance obligations for contracts that have original expected durations of one year or less.
In-House Operating Expenses and Other Operating Expenses
In-House operating expenses represent the cost of sales of our In-House revenues and consist primarily of the cost of food and beverage products, employee-related costs for In-House staff members, rent expense, and utility costs. Other operating expenses represent the cost of sales of our Other revenues and consist primarily of the cost of retail products, food and beverage product costs associated with non-House restaurant operations, and employee-related costs for non-House staff members.
Government Grants
Throughout Fiscal 2020, as a result of impacts from the COVID-19 pandemic, governmental agencies in the United Kingdom and other European countries provided the Company grants primarily to support payroll needs. These government grants are exclusive of funds received (and eventually paid off) under the Paycheck Protection Program enacted by the U.S. Coronavirus Aid, Relief, and Economic Security Act, which were accounted for as a borrowing (refer to Note 12, Debt, for more information). Government grants are recognized when there is reasonable assurance that cash will be received and that conditions attached to the grant have been met. Such government grants totaled $21 million during the fiscal year ended January 2, 2022 and are presented as a reduction of payroll expenses within in-House operating expenses ($17 million), other operating expenses ($3 million) and general and administrative expense ($1 million) on the consolidated statements of operations. During the fiscal year ended January 3, 2021, government grants totaled $26 million and were presented as a reduction of payroll expenses within in-House operating expenses ($19 million), other operating expenses ($4 million) and general and administrative expense ($3 million) on the consolidated statements of operations.
Interest Expense
Interest expense is charged to the consolidated statements of operations over the term of the debt such that the amount charged is at a constant rate on the carrying amount (i.e. using the effective interest method). Interest expense includes the amortization of debt issuance costs, which are initially recognized as a reduction in the proceeds of the associated debt instrument, and interest expense on finance leases.
Business Interruption and Other Insurance Claims
The Company maintains insurance policies to cover business interruption and property damage with terms that it believes to be adequate and appropriate. When the Company receives proceeds from the insurance claim in connection with property damage, which reimburses the replacement cost for repair or replacement of damaged assets, the proceeds are recognized as a reduction against the value of the assets written off. Business interruption proceeds which reimburse the time-element of actual costs and lost profits following damage to property are recognized as non-operating income. Business interruption proceeds related to the cost to expedite repairs, retention pay to workers temporarily displaced, and additional expenses to stay in business following damage to property are recognized as a reduction of the related expense line item. If there are any outstanding receivables in respect of insurance recoveries, they are recognized only when the Company deems collection to be virtually certain.
Income Taxes
Significant judgment is involved in determining the provision for income taxes. There are certain transactions for which the ultimate tax determination is unclear due to uncertainty in the ordinary course of business. The Company recognizes tax liabilities based on its assessment of whether its tax positions are more likely than not to be sustained, based on the technical merits and considerations of the relevant taxing authorities’ widely understood administrative practices and precedence. The Company recognizes accrued interest and penalties for any unrecognized tax benefits as a component of income tax (benefit) expense.
Income tax (benefit) expense consists of taxes currently payable and changes in deferred tax assets and liabilities calculated according to local tax rules. Deferred tax assets and liabilities are based on temporary differences that arise between carrying values of assets and liabilities used for financial reporting purposes and amounts used for taxation purposes and the future tax benefits of tax loss carry forwards. A deferred tax asset is recognized only to the extent that it is more likely than not that future taxable profits will be available against which the asset can be utilized.
Significant judgment is required in determining any valuation allowance recorded against deferred tax assets. In assessing the need for a valuation allowance, management considers all available evidence for each jurisdiction, including past operating results, estimates of future taxable income and the feasibility of ongoing tax planning strategies. In the event that the Company changes its determination as to the amount of deferred tax assets that can be realized, the Company will adjust its valuation allowance with a corresponding impact to income tax (benefit) expense in the period in which such determination is made.
The amount of deferred tax recognized in any period is based on tax rates enacted as of the balance sheet date. The impact of tax law changes is recognized in periods when the change is enacted. The Company classifies all deferred tax assets and liabilities, including any related valuation allowance, as non-current on the consolidated balance sheets.
Indirect Taxes
The Company remits sales, value added and other indirect taxes to various taxing jurisdictions as a result of revenue earned from the sale of products and services to customers. Specific sales tax rates applicable to the Company’s products and services vary by taxing jurisdiction. The Company records sales, value added and other indirect taxes as liabilities when incurred. Revenue is recognized net of sales, value added and other indirect taxes.
Foreign Currency and Operations
During periods preceding the IPO that are presented in these consolidated financial statements, our business was conducted through SHHL. The functional currency of SHHL is the British pound sterling ("GBP"). As a result of the Reorganization Transactions in connection with the IPO, SHHL became a wholly-owned subsidiary of MCG. The functional currency of MCG is the United States dollar ("USD"). Our reporting currency for the consolidated financial statements is the USD for all periods presented.
The functional currency is the currency of the primary economic environment in which an entity’s operations are conducted. The functional currency of the Company’s subsidiaries is generally the same as their local currency. The Company translates the financial statements of its subsidiaries into the presentation currency using exchange rates in effect on the balance sheet date for assets and liabilities and average exchange rates for the period for statement of operations accounts, with the difference recognized in accumulated other comprehensive (loss) income. The following exchange rates were used to translate the financial statements of the Company and its foreign subsidiaries into USD:
Foreign currency transaction gains and losses are included in other in the consolidated statements of operations. The Company recorded foreign currency transaction net losses of $26 million, net gains of $3 million, and net gains of $3 million during the fiscal years ended January 2, 2022, January 3, 2021, and December 29, 2019, respectively.
Pre-Opening Expenses
Pre-opening expenses include costs associated with the acquisition, opening, conversion and initial setup of new and converted sites, including rent, overhead expenses, pre-opening marketing and incremental wages to support the “ramp up” period of time to support the site in the initial period following opening. These costs are expensed as incurred and are included in pre-opening expenses in the consolidated statements of operations. The entire balance of these costs is related to pre-opening activities for our Houses in each of the periods presented.
Advertising Costs
The cost of advertising and media is expensed as incurred. For the fiscal years ended January 2, 2022, January 3, 2021, and December 29, 2019, advertising costs totaled $6 million, $4 million, and $6 million, respectively. Advertising costs are included in general and administrative expense in the consolidated statements of operations.
Share-Based Compensation
Share-based compensation is measured at the estimated fair value of the award on the grant date and recognized as an expense on a straight-line basis over the vesting period of the award. The Company does not reduce share-based compensation for an estimate of forfeitures and will account for forfeitures when they occur. In order to determine the grant date fair value of awards granted prior to IPO, the Company applied the Black-Scholes option-pricing valuation model. The determination of fair value of these awards is subjective and involves estimates and assumptions including expected term of the awards, volatility of the Company’s shares, expected dividend yield, and the risk-free rate. The Company uses the closing stock price on the date of grant to determine the grant date fair value for restricted stock units ("RSUs").
Share-based compensation expense is recorded within general and administrative expense in the consolidated statements of operations. See Note 14, Share-Based Compensation, for additional information.
Offering Costs
Direct and incremental legal and accounting costs associated with the Company’s initial public offering totaling $40 million have been recorded as a reduction of offering proceeds within additional paid-in capital in the consolidated balance sheet as of January 2, 2022. In addition, during the fiscal year ended January 2, 2022, the Company incurred $14 million, respectively, of costs related to the offering which were recognized in other in the consolidated statements of operations. There were no offering costs incurred during the fiscal years ended January 3, 2021 or December 29, 2019.
Comprehensive Loss
The entire balance of accumulated other comprehensive income (loss), net of income taxes, is related to the cumulative translation adjustment in each of the periods presented. The changes in the balance of accumulated other comprehensive income (loss), net of income tax, are attributable solely to the net change in the cumulative translation adjustment in each of the periods presented, and include the error correction described above during the fiscal year ended January 2, 2022.
Net Loss per Share
The Company computes net loss per share using the two-class method. As the liquidation and dividend rights are identical, the undistributed earnings or losses are allocated on a proportionate basis to each class of common stock, and the resulting basic and diluted loss per share attributable to common stockholders are therefore the same for Class A and B common stock. Basic loss per share is computed by dividing loss available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted loss per share is based on the weighted-average number of common shares outstanding for the period and respective share equivalents outstanding at the end of the period, unless the effect is anti-dilutive. An anti-dilutive impact is a reduction in net loss per share resulting from the conversion, exercise, or contingent issuance of certain securities. Since the Company had net losses for all the periods presented, basic and diluted loss per share are the same, and additional potential common shares have been excluded as their effect would be anti-dilutive.
As discussed in Note 1, Nature of the Business, immediately prior to the IPO, the Company completed certain reorganization transactions which resulted in changes to our common stock and issued and outstanding shares but no change in relative shareholder rights, rank, or value before and after the reorganization transaction. As such, the Reorganization Transactions were considered to have an equivalent effect to a stock split and require retrospective treatment for purposes of computing loss per share. All share and per share information has been retroactively adjusted to reflect the impact of the Reorganization Transactions for all periods presented. The issuance of shares in the IPO and the impact of conversion of the senior convertible preference shares into Class A common stock are included in the calculation of loss per share prospectively from the date of issuance or conversion, as the case may be.
SHHL Redeemable Preferred Shares and SHHL Redeemable C Ordinary Shares
As of January 3, 2021 and December 29, 2019, SHHL had redeemable preferred shares and redeemable C ordinary shares outstanding, which are collectively referred to as "redeemable shares." In addition, in March 2021, the Company issued senior convertible preference shares, which were subsequently converted into Class A common stock immediately after the IPO. See Note 15, SHHL Redeemable Preferred Shares and Note 16, SHHL C Ordinary Shares, for additional information.
Preferred shares subject to mandatory redemption as of a specified date are classified as debt and are initially measured at fair value. Contingently redeemable shares (including shares that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company's control) are classified as temporary equity and initially measured at fair value.
When redemption is deemed to be probable, if the carrying amount of the redeemable shares is less than the redemption value, the carrying value of the shares is increased by periodic accretions so that the carrying value is equal to the redemption amount at the earliest redemption date. Such accretion is recorded as a dividend in the consolidated statements of changes in shareholders' equity (deficit).
Prior to February 2019, SHHL had certain preferred shares that were redeemable after five years and were considered probable of becoming redeemable in the future. For those shares, the redemption price was fixed, such that no adjustment or accretion was required to the carrying value. Certain other redeemable shares which are neither initially redeemable nor considered to be probable to be redeemable are recorded at their initial carrying value, and an adjustment of the initial carrying amount is not made until it is probable that the shares will become redeemable. During the second fiscal quarter of 2021, the Company concluded that certain SHHL redeemable preferred shares were probable of becoming redeemable and, therefore, the shares were accreted to their redemption value; see Note 15, SHHL Redeemable Preferred Shares, for additional information.
Commitments and Contingencies
The Company is subject to loss contingencies that arise out of operations in the normal course of business. Periodically, the Company reviews the status of each significant matter and assesses the potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable, and the amount can be reliably estimated, such amount is recognized in other liabilities on the consolidated balance sheets.
Contingent liabilities are measured at the Company’s best estimate of the expenditure required to settle the obligation as of the end of the reporting period. If there is no best estimate, an amount is recorded for the lowest amount of the range of potential outcomes. Refer to Note 18, Commitments and Contingencies, for more information.
Future Accounting Standards
In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). The ASU adds to US GAAP an impairment model (known as the current expected credit loss, or “CECL,” model) that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes as an allowance its estimate of expected credit losses, which is intended to result in the more timely recognition of losses. Under the CECL model, entities will estimate credit losses over the entire contractual term of the instrument from the date of initial recognition of the financial instrument. The update is effective for the Company for fiscal years beginning after December 15, 2022 or the interim period in which the Company loses emerging growth company status, and should be adopted using a modified retrospective approach, which applies a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective.
In November 2018 and April 2019, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments – Credit Losses and ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, respectively. These amendments add clarity to certain areas within ASU 2016-13. In May 2019, the FASB issued ASU 2019-05, Financial Instruments - Credit Losses (Topic 326), Target Transition Relief, which provided transition relief for entities adopting ASU 2016-13 by allowing the election of the fair value option on certain financial instruments. The effective date and the transition methodology for the amendments in these updates are the same as in ASU 2016-13.
ASU 2016-13 and related updates apply to how the Company evaluates impairments of its trade receivables and notes receivable. The Company does not expect these ASUs to have a material impact on its consolidated financial statements and related disclosures.
In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. The ASU requires entities to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC 606, Revenue from Contracts with Customers. The update is effective for the Company for fiscal years beginning after December 15, 2023 or the interim period in which the Company loses emerging growth company status, and should be adopted using a prospective approach to business combinations occurring on or after the effective date of the amendments. The Company is currently evaluating the impact of this ASU on its consolidated financial statements and related disclosures.
In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance. The amendments in this update require additional annual disclosures about transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy. The update is effective for the Company for fiscal years beginning after December 15, 2021, and should be adopted prospectively to all transactions within the scope of the amendments that are reflected in financial statements at the date of initial application and new transactions entered into after the date of initial application, or retrospectively to those transactions. The Company is currently evaluating the impact of this ASU on its consolidated financial statements and related disclosures.
Recently Adopted Accounting Standards
In August 2020, the FASB issued ASU 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40). ASU 2020-06 simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity. The ASU is part of the FASB’s simplification initiative, which aims to reduce unnecessary complexity in US GAAP. The ASU’s amendments are effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. The Company elected to early adopt the ASU on January 4, 2021. The provisions of this ASU have been applied on a modified retrospective basis and did not have a material impact on the Company’s consolidated financial statements and related disclosures.
In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract. The ASU clarifies that implementation costs incurred by customers in cloud computing arrangements are deferred if they would be capitalized by customers in the software licensing arrangements under the internal-use software guidance. ASU 2018-15 also clarifies that any capitalized costs should not be recorded to depreciation and amortization in the consolidated statement of operations. The Company adopted this standard effective January 4, 2021 prospectively to all new implementation costs incurred after adoption. The amendments of ASU 2018-15 did not have a significant impact on the Company’s consolidated financial statements and related disclosures. |
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Acquisitions |
12 Months Ended |
|---|---|
Jan. 02, 2022 | |
| Business Combinations [Abstract] | |
| Acquisitions | 3. Acquisitions
Scorpios Acquisition
In April 2019, the Company acquired a controlling interest in certain businesses in Greece (“Scorpios Acquisition”) for total consideration of approximately $52 million, including cash consideration of $51 million and contingent consideration of $1 million. The acquired businesses (collectively referred to as the “Scorpios businesses”) comprise a beach club (in which the Company acquired a 67% ownership interest), a hotel (in which the Company acquired a 75% ownership interest), and a restaurant that was under construction as of the acquisition date (in which the Company acquired a 71% ownership interest that was subsequently sold). The Scorpios Acquisition was accounted for as a business combination.
On April 30, 2021, the Company acquired an additional 12% equity interest from various noncontrolling interest holders of Paraga Beach S.A., the entity which owns and operates Scorpios Beach Club, for cash consideration of $9 million. On May 12, 2021, the Company issued 572,410 C2 ordinary shares of SHHL with an aggregate fair value of $8 million to Seligny Holdings Limited and Jaquelle Limited in order to acquire an additional 11% equity interest in Paraga Beach S.A (collectively, the “Scorpios Noncontrolling Interests Acquisitions”). The fair value of the C2 ordinary shares was derived by using an implied valuation of $13.49 per share which was supported by recent third-party capital raising transactions that occurred during Fiscal 2021. The Scorpios Noncontrolling Interests Acquisitions were accounted for as transactions with noncontrolling interest holders that did not result in a loss of control. In total, the Company derecognized noncontrolling interest of $16 million and recorded the difference between the fair value of consideration transferred to the noncontrolling interest holders and the carrying value of the noncontrolling interest as a reduction in additional paid-in capital. Following the Scorpios Noncontrolling Interests Acquisitions, Seligny Holdings Limited and Jaquelle Limited continue to hold a 10% ownership interest in Paraga Beach S.A.
Quentin Limited (Soho Restaurants Limited) Reorganization
In August 2020, the Company became the primary beneficiary of Quentin Limited (now known as Soho Restaurants Limited) after a related party became the sole equity owner of Soho Restaurants Limited following a reorganization of the entity. As a result, the Company began consolidating Soho Restaurants Limited and applied the acquisition method of accounting at the date that it became the primary beneficiary as a result of this transaction. No consideration was paid by the Company in this transaction. Upon initial consolidation, the Company recognized $1 million of cash and cash equivalents, $5 million of net working capital liabilities, and $11 million of right-of-use assets and related lease liabilities. In addition, the Company recognized noncontrolling interest of $2 million. There were no material property, plant and equipment and no intangible assets recognized by the Company as a result of consolidating Soho Restaurants Limited. For Fiscal 2020, the consolidated financial statements include the results of Soho Restaurants Limited from the date of initial consolidation through January 3, 2021, however such results are considered immaterial to the overall operations of the Company. See Note 4, Consolidated Variable Interest Entities, for further discussion.
Prior to the reorganization, the Company guaranteed the obligations of Soho Restaurants Limited under certain property leases with respect to any required rental and other payments. Prior to Fiscal 2020, the Company did not have to make any payments under these rental guarantees and determined that the likelihood of the Company having to perform under the guarantees was remote. As a result of the impact of the COVID-19 pandemic on Soho Restaurants Limited’s operations, the Company reassessed the likelihood of performance under the guarantees and recognized a charge of $5 million prior to the Soho Restaurants Limited reorganization; this guarantee provision is included in general and administrative expense in the consolidated statement of operations for the fiscal year ended January 3, 2021. Upon consolidating Soho Restaurants Limited in August 2020, the Company’s guarantee obligation pertaining to leases retained by Soho Restaurants Limited after the reorganization was effectively settled as a pre-existing relationship.
Cipura Acquisition
Prior to May 2021, the Company held a 50% interest in Cipura, which owns and operates the Mandolin Aegean Bistro, located in Miami, Florida. Historically, the Company accounted for its investment in Cipura using the equity method of accounting. On May 10, 2021, the Company acquired the remaining 50% ownership interest in Cipura in exchange for issuing 644,828 C2 ordinary shares of SHHL with an aggregate fair value of $9 million (the “Cipura Acquisition”). The fair value of the C2 ordinary shares was derived by using an implied valuation of $13.49 per share, as described above. In connection with the Cipura Acquisition, the Company derecognized its previous 50% ownership interest in Cipura, which was remeasured to fair value; as a result, the Company recognized a gain of $7 million, which is included in gain (loss) on sale of property and other, net in the consolidated statements of operations for the fiscal year ended January 2, 2022. The fair value of the Company’s previously held interest was determined based upon the purchase consideration for the remaining 50% ownership interest.
The Cipura Acquisition was accounted for as a business combination under the acquisition method of accounting. As a result, the Company initially recognized less than $1 million of cash and cash equivalents, less than $1 million of net working capital liabilities, $1 million of property and equipment, $3 million of intangible assets (consisting of an indefinite-lived trade name), less than $1 million of deferred tax liabilities, and $4 million of right-of-use assets and $5 million of related lease liabilities. In addition, prior to the acquisition, the Company funded certain costs on behalf of Cipura and therefore recorded a balance due from Cipura of $2 million as of the acquisition date. Upon consolidating Cipura on May 10, 2021, the Company’s receivable balance was effectively settled as a pre-existing relationship, with a corresponding increase in the amount of goodwill recognized from the transaction.
As a result of the acquisition, the Company recognized goodwill of $17 million, which represents intellectual capital, know-how for potential future openings and undertakings, and economic benefits that the Company expects to derive from the ability to expand the Mandolin Aegean Bistro brand that do not qualify for separate recognition. The entire value of goodwill has been allocated to a separate reporting unit in our North America segment which did not have any goodwill prior to the Cipura Acquisition. The recognized goodwill is not deductible for tax purposes. During the third quarter of Fiscal 2021, the Company recorded adjustments to certain previous preliminary estimated fair values which resulted in recognition of an additional operating lease right-of-use asset and associated lease liability of $1 million, a less than $1 million increase in intangible assets, a less than $1 million increase in deferred tax liabilities, and a less than $1 million reduction in goodwill.
The consolidated financial statements include the results of Cipura from May 10, 2021 through January 2, 2022, however such results are considered immaterial to the overall operations of the Company. The consolidated statement of operations for the fiscal year ended January 2, 2022 also includes less than $1 million in acquisition related costs, which were expensed as incurred and are included in general and administrative expense.
Mandolin Acquisition
On May 10, 2021, the Company acquired the intellectual property rights for Mr. Mandolin and Mrs. Mandolin (the “Mandolin IP”) in exchange for issuing 92,647 C2 ordinary shares of SHHL with an aggregate fair value of $1 million (the “Mandolin Acquisition”). The fair value of the C2 ordinary shares was derived by using an implied valuation of $13.49, as described above. The Mandolin Acquisition was accounted for as an asset purchase, and the Mandolin IP has been recorded in other intangible assets, net on the consolidated balance sheet as of January 2, 2022.
Soho Works North America Acquisition
On May 10, 2021, the Company issued 3,984,883 C2 ordinary shares of SHHL with an aggregate fair value of $54 million to SW SPV, LLC (the “SW Seller”) in order to acquire the SW Seller’s 30% equity ownership interest in Soho Works North America, LLC (the “Soho Works Acquisition”). The fair value of the C2 ordinary shares was derived by using an implied valuation of $13.49 per share, as described above. Prior to the Soho Works Acquisition, the Company held a controlling interest in and therefore consolidated Soho Works North America, LLC. The Soho Works Acquisition was accounted for as a transaction with a noncontrolling interest holder that did not result in a loss of control. The Company derecognized noncontrolling interest of $33 million and recorded the difference between the fair value of consideration transferred to the SW Seller of $54 million and the carrying value of the noncontrolling interest as a reduction in additional paid-in capital (i.e. a deemed distribution in the absence of retained earnings). Following the Soho Works Acquisition, the Company became the sole equity owner of Soho Works North America, LLC.
LINE and Saguaro Acquisition
On June 22, 2021 the Company entered into a membership interests purchase agreement with Sydell Group LLC (“Sydell”) to acquire all of the outstanding shares in the companies that together operate existing and future “The LINE” and “Saguaro” hotels in the United States (the “LINE and Saguaro Acquisition”). The hotels that are currently operational are located in Los Angeles, Washington DC, Austin, Scottsdale and Palm Springs, and between them offer a variety of food and beverage offerings together with approximately 1,470 hotel rooms. An additional hotel is under development in San Francisco. The Company issued 1,900,599 C2 ordinary shares of SHHL with an aggregate fair value of $26 million as consideration for the LINE and Saguaro Acquisition. The fair value of the C2 ordinary shares was derived by using an implied valuation of $13.49 per share, as described above.
The LINE and Saguaro Acquisition was accounted for as a business combination under the acquisition method of accounting. The only acquired identifiable assets are related to the hotel management agreements intangible asset, which has a total fair value of $24 million and an estimated useful life of 15 years. The hotel management agreements were valued using the multi-period excess-earnings method, with key inputs consisting of the forecasted hotel management fees (including the probability of renewal of the hotel management agreements), profitability margins, and discount rate applied to the estimated net cash flows. The Company did not acquire any other assets or assume any other liabilities.
As a result of the LINE and Saguaro Acquisition, the Company recognized $2 million of goodwill, which represents the fair value of the assembled workforce that is not separately recognized from goodwill and the economic benefits that the Company expects to derive from the ability to expand the hotel management agreements that do not qualify for separate recognition. In addition, the goodwill relates to the synergies expected to be gained from the affiliation of the LINE hotels with the Soho House brand name. The entire value of goodwill has been allocated to a separate reporting unit in our North America segment which did not have any goodwill prior to the LINE and Saguaro Acquisition. The recognized goodwill is deductible for tax purposes.
The consolidated financial statements include the results of the acquired business from June 22, 2021 through January 2, 2022, however such results are considered immaterial to the overall operations of the Company. The consolidated statement of operations for the fiscal year ended January 2, 2022 also includes $1 million in acquisition related costs, which were expensed as incurred and are included in general and administrative expense.
The C2 ordinary shares issued in the transactions described above were exchanged for Class A common stock of MCG in connection with our IPO in July 2021, as further described in Note 1, Nature of the Business. |
Consolidated Variable Interest Entities |
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| Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Consolidated Variable Interest Entities | 4. Consolidated Variable Interest Entities
The Company determined that it is the primary beneficiary of the following material variable interest entities (“VIEs”): Soho Restaurants Limited (beginning in August 2020); Beach House JV, LLC (periods prior to February 2019 only); Ned-Soho House, LLP (formerly known as Soho House-Sydell, LLP; all periods presented); Soho Works Limited (all periods presented); and Soho Works North America, LLC (all periods presented).
Soho Restaurants Limited
Prior to December 2017, the Company held a 50% interest in Soho Restaurants Limited, a joint venture between the Company and Lansdowne Development Limited (“Lansdowne”). The Company accounted for its investment in Soho Restaurants Limited using the equity method of accounting, as Lansdowne had the power to participate in making decisions related to all of the entity’s significant activities. In December 2017, the Company transferred its entire interest in Soho Restaurants Limited and subsidiaries for an immaterial amount to Quentin Partners Limited (“Quentin Partners”), an affiliate of the Company. As a result of the sale, the Company derecognized its equity-method investment in Soho Restaurants Limited. Following the sale, the Company entered into a Management Service Agreement (the “Quentin Partners MSA”) to provide certain administrative and operating support to Quentin Partners. The Company receives costs reimbursements from Quentin Partners in relation to providing these services, which are netted against operating expenses recognized in the consolidated statements of operations and are immaterial.
In addition, prior to December 2017, the Company and Lansdowne each agreed to provide unsecured non-interest-bearing loan notes (“Soho Restaurants Loan Notes”) to Soho Restaurants Limited from time to time. The Soho Restaurants Loan Notes do not have a stated maturity date; however, the notes become due and payable, in part or in whole, at any time at the option of the holder or Soho Restaurants Limited. The Company retained the Soho Restaurants Loan Notes after the sale of its equity interest in Soho Restaurants Limited. During Fiscal 2020, following a review of the recoverability of the balances due from Soho Restaurants Limited, the carrying value was reduced to zero.
In periods prior to Fiscal 2020, the Company determined that the Soho Restaurants Loan Notes, lease guarantees and Quentin Partners MSA did not provide it with the power to direct Soho Restaurants Limited’s most significant activities and, therefore, the Company was not the primary beneficiary of Soho Restaurants Limited.
On August 18, 2020, Soho Restaurants Limited underwent a series of reorganization steps, through which Lansdowne sold its 50% equity interest in Soho Restaurants Limited to Quentin Partners and concurrently acquired 100% of Soho Restaurants Limited’s equity interest in Mollie’s Motels Holdings Limited. Following the reorganization, Quentin Partners became the sole equity holder of Soho Restaurants Limited. Additionally, as part of these reorganization steps, various notes payable and receivable held by Soho Restaurants Limited were acquired, settled, or, in some cases, forgiven. Specifically, Quentin Partners acquired for nominal consideration (and forgave) all outstanding Soho Restaurants Loan Notes with the exception of a £1 million ($1 million) Loan Note, which remains outstanding after the reorganization was completed. As a result of the reorganization and the Company’s variable interest in Soho Restaurants Limited (consisting primarily of a Loan Note and certain lease guarantees, as described in Note 18, Commitments and Contingencies), the Company determined that it is the primary beneficiary of Soho Restaurants Limited due to its related party affiliation with Quentin Partners and its funding of the majority of Soho Restaurants Limited’s operations. As such, the Company began consolidating Soho Restaurants Limited on August 18, 2020. The Soho Restaurants Limited reorganization transaction was accounted for using the acquisition method of accounting as described in Note 3, Acquisitions.
Beach House JV, LLC
The Company has a 100% economic interest in Beach House JV, LLC (“Soho Beach House Miami”). Prior to February 2019, the property mortgage loans associated with Soho Beach House Miami provided the lenders with certain decision-making rights and, as a result, the Company concluded that the entity was a VIE, and the Company was its primary beneficiary. In February 2019, the Company refinanced the property mortgage loans associated with Beach House JV, LLC, as further described in Note 12, Debt. As a result of the refinancing and the associated changes in decision-making rights of the holders of equity at risk, Beach House JV, LLC ceased to be a VIE in the first quarter of Fiscal 2019. The Company continues to consolidate this entity based on its 100% interest.
Ned-Soho House, LLP
The Ned-Soho House, LLP joint venture maintains a management agreement to operate The Ned, which is owned by unconsolidated related parties to the Company. Management fees are recognized in other revenues in the consolidated statements of operations. The Company has a higher economic interest in Ned-Soho House, LLP as compared to its related party venture partner and therefore the Company is determined to be the primary beneficiary.
Soho Works Limited and Soho Works North America, LLC
The Soho Works Limited (“SWL”) joint venture develops and operates Soho-branded, membership-based co-working spaces, with two sites currently in operation in the UK. The joint venture agreement relates to the UK only. The joint venture was formed on September 29, 2017 when the Company granted to two unrelated individuals an option to subscribe for 30% of the issued shares of SWL. The option has not yet been exercised and, consequently, the Company has 100% economic interest in SWL. Upon exercise of the option, the Company would have 70% economic interest in SWL. The options carry voting rights such that the Company and other joint venture partners each hold 50% of the voting rights in respect of shareholder resolutions and certain reserved matters as defined in the joint venture agreement. The Company is determined to be the primary beneficiary because it has the power to direct all significant activities of the joint venture.
Soho Works North America, LLC and its wholly owned subsidiaries (“SWNA”) was established to develop and operate Soho-branded, membership-based co-working spaces in North America. This joint venture was formed on December 26, 2018 when the Company granted to related and unrelated individuals a subscription for 30% of the issued shares of SWNA. Under the terms of the original joint venture agreement, the Company held a 70% economic interest in SWNA; the Company and other joint venture partners each held 50% of the voting rights in respect of shareholder resolutions and certain reserved matters. In all periods prior to May 2021, the Company was determined to be the primary beneficiary because the Company, together with the related party joint venture partners, had the power to direct the most significant activities that affect the economic performance of SWNA, and the parties had the obligations/rights to those economic losses or benefits that could be significant to SWNA. In May 2021, the Company completed the Soho Works Acquisition, as described in Note 3, Acquisitions. Following the transaction, the Company controls all voting rights and has exposure to all of the economics of the entity as a result of being the sole equity owners. SWNA continues to require ongoing financial support and additional funding and therefore, SWNA continues to be a VIE. Given that the Company had exposure to the economics since inception of the entity and has unilateral rights to make significant financial and operating decisions of the entity, the Company continues to be the primary beneficiary and continues to consolidate SWNA under the VIE model.
The following table summarizes the carrying amounts and classification of the consolidated VIEs’ assets and liabilities included in the consolidated balance sheets. The obligations of the consolidated VIEs other than Soho Restaurants Limited are non-recourse to the Company, and the assets of the VIEs can be used only to settle those obligations.
(1) Amounts as of January 2, 2022 include balances related to SWNA following the Soho Works Acquisition, as this entity continues to be thinly capitalized. |
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Equity Method Investments |
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| Equity Method Investments | 5. Equity Method Investments
The Company maintains a portfolio of equity method investments owned through noncontrolling interests in investments with one or more partners. Equity method investment ownership interests in each of the periods presented in these consolidated financial statements are as follows:
(1) During Fiscal 2021, the Company acquired the remaining 50% interest in Cipura and had 100% ownership of the investment as of January 2, 2022. The entity became a consolidated subsidiary of the Company beginning on the date of acquisition, as described in Note 3, Acquisitions.
Under applicable guidance for VIEs, the Company determined that its investments in Soho House Toronto Partnership ("Soho House Toronto") and the entities comprising 56-60 Redchurch Street, London are VIEs. Soho House Toronto owns and operates a House located in Toronto, while 56-60 Redchurch Street, London provides additional members’ accommodation capacity for Shoreditch House in London. Prior to Fiscal 2020, the Company’s investment in the entities comprising Soho House Barcelona were also considered to be VIEs, as described further below.
Toronto Joint Venture
On March 28, 2012, the Company and two unrelated investors (“Toronto Partners”) formed Soho House Toronto to establish and operate a house in Toronto, Canada. The Company is responsible for managing the development and operations of the property with key operating decisions requiring joint approval with the Toronto Partners. The Company owns a 50% interest and each of the Toronto Partners owns a 25% interest in Soho House Toronto. Each investor is entitled to a share of the profits or losses of Soho House Toronto in proportion to their respective ownership percentage. As part of the original agreement, the Toronto Partners received a put option to sell their interest in Soho House Toronto to the Company at fair value and the Company received a call option to purchase the Toronto Partners' interests at fair value. As of 2015, certain restrictions expired and the put and call options are exercisable. As of January 2, 2022, no options have been exercised.
Soho House Toronto entered into a 10-year lease agreement with a landlord to lease the property. This lease was extended for an additional 5 years in fiscal 2021. A subsidiary of the Company provided a guarantee to the landlord for Soho House Toronto's rental liabilities.
Barcelona Joint Venture
On January 28, 2014, the Company and an unrelated development partner (“Barcelona Partner”) formed Mimea XXI, S.L.U. (“Mimea”) to establish and operate Soho House Barcelona in Barcelona, Spain. Soho House Barcelona is owned by Mirador Barcel S.L., a subsidiary of Mimea. Each partner has a 50% interest in Soho House Barcelona through the indirect ownership of ordinary shares. Internal allocation of profits in relation to running Soho House Barcelona, calculated as defined in the contract, is shared between the Company and Barcelona Partner based on their respective ownership percentage. All remaining profits or losses of Soho House Barcelona are attributed solely to the Company in return for managing the operations. In addition, the Barcelona Partner received certain development-related fees for the development of the property. Following its redevelopment and opening of the Soho House Barcelona, the Company agreed to meet certain performance targets (see Note 18, Commitments and Contingencies). On June 4, 2020, the Company entered into an amended shareholders agreement as a result of a newly formed joint venture to operate Little Beach House Barcelona, a private members club and hotel developed at the existing Barcelona property. Little Beach House Barcelona is a newly formed subsidiary under Mimea. As a result of the reorganization and amendments to the shareholders agreement, the Company determined that the entities comprising the Barcelona joint venture are not VIEs, and the investment is accounted for under the equity-method. During the fiscal years ended January 2, 2022 and January 3, 2021, the Company advanced an additional $8 million and $2 million, respectively, to the Soho House Barcelona joint venture.
56-60 Redchurch Street, London Joint Venture
On July 6, 2015, the Company and an unrelated investor (“Raycliff Partner”) formed Raycliff Red LLP (“Club Row Rooms”) to develop and operate a hotel at 58-60 Redchurch Street intended to provide additional members’ accommodation to the nearby Shoreditch House in London. This was later extended to include 56 Redchurch Street under the same terms. The Company is responsible for managing the operations of the property and the Raycliff Partner is responsible for managing the building. Each partner has a 50% interest in Club Row Rooms through equal ownership of B units. The Raycliff Partner owns all A units. All profits and losses from operations are shared between parties based on their respective ownership of B units. Distributions from cash flows not generated from operations are first allocated to holders of A units (for an amount of up to £500,000), with the remainder distributed to holders of B units in proportion to their holdings. Under a hotel management agreement and restaurant management agreement between the Company and Club Row Rooms, the Company also receives a 2.5% management fee in return for managing the hotel operations and a 3.5% management fee in return for managing the restaurant operations of the property. The amounts received to date under this agreement are immaterial. Club Row Rooms, which owns the rights to the property, financed the development of the property through third-party debt. The Company has entered into a security arrangement with the bank in relation to this debt (see Note 18, Commitments and Contingencies).
The Raycliff Partner holds a put option which requires the Company to purchase all the Raycliff Partner’s interest at fair value in the event the Company ceases to own a controlling interest in the nearby Shoreditch House. As of January 2, 2022, and January 3, 2021, the put option has not been triggered.
The Company concluded that it is not the primary beneficiary of the Soho House Toronto or 56-60 Redchurch Street, London VIEs in any of the periods presented, as its joint venture partners have the power to participate in making decisions related to the majority of significant activities of each investee. Accordingly, the Company concluded that application of the equity method of accounting is appropriate for these investees. Barcelona was previously determined to be a VIE; however, the execution of amended governing documents in June 2020 constitutes a reconsideration event and Barcelona no longer meets the VIE criteria.
Summarized Financial Information
The following tables present summarized financial information for all unconsolidated equity method investees. The Company’s maximum exposure to losses related to its equity method investments is limited to its ownership interests as well as certain guarantees as described in Note 18, Commitments and Contingencies.
(1) Includes the financial information of Cipura through May 10, 2021. (2) The net loss shown above relates entirely to continuing operations.
(1) Excludes the financial information of Cipura, which ceased to be an equity method investee on May 10, 2021 as a result of the Cipura Acquisition, as described in Note 3, Acquisitions.
The Company’s equity method investees have not yet adopted Topic 842; therefore, the balance sheets of equity method investees do not include operating right-of-use assets and liabilities. |
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Leases |
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| Leases | 6. Leases
The Company has entered into various lease agreements for its Houses, hotels, restaurants, spas and other properties across North America, Europe, and Asia. The Company’s material leases have reasonably assured lease terms ranging from 1 year to 30 years for operating leases and 50 years for finance leases. Certain operating leases provide the Company with multiple renewal options that generally range from 5 years to 10 years, with rent payments on renewal based on a predetermined annual increase or market rates at the time of exercise of the renewal. The Company has 2 material finance leases with 25-year renewal options, with rent payments on renewal based on upward changes in inflation rates. As of January 2, 2022, the Company recognized right-of-use assets and lease liabilities for 101 operating leases and 2 finance leases. During the fiscal year ended January 2, 2022, there were 19 new operating leases, 1 cancelled operating lease, and 10 modifications of existing operating leases. When recognizing right-of-use assets and lease liabilities, the Company includes certain renewal options where the Company is reasonably assured to exercise the renewal option.
The maturity of the Company’s operating and finance lease liabilities as of January 2, 2022 is as follows:
Certain lease agreements include variable lease payments that, in the future, will vary based on changes in the local inflation rates, market rate rents, or business revenues of the leased premises. Leases that contain market rate rents generally reset every five years.
Straight-line rent expense recognized as part of in-House operating expenses for operating leases was $117 million, $110 million, and $89 million for the fiscal years ended January 2, 2022, January 3, 2021, and December 29, 2019 respectively. Variable lease payments recognized as part of in-House operating expense for operating leases were $6 million, $3 million, and $15 million for the fiscal years ended January 2, 2022, January 3, 2021, and December 29, 2019, respectively, including non-lease components such as common area maintenance fees.
For the fiscal years ended January 2, 2022, January 3, 2021, and December 29, 2019 the Company recognized amortization expense related to the right-of-use asset for finance leases of $2 million, $2 million, and $1 million respectively, and interest expense related to finance leases of $5 million, $5 million, and $5 million respectively. There were no material variable lease payments for finance leases for the fiscal years ended January 2, 2022, January 3, 2021, and December 29, 2019.
New Houses typically have a maturation profile that commences sometime after the lease commencement date used in the determination of the lease accounting in accordance with Topic 842. The consolidated balance sheets set out the operating lease liabilities split between sites trading less than one year and sites trading more than one year. “Sites trading less than one year” and “sites trading more than one year” reference sites that have been open (as measured from the date the site first accepted a paying guest) for a period less than one year from the balance sheet date and those that have been open for a period longer than one year from the balance sheet date.
The following information represents supplemental disclosure for the statement of cash flows related to operating and finance leases:
The following summarizes additional information related to operating and finance leases:
As of January 2, 2022, the Company has entered into 10 operating lease agreements for Houses, hotels, restaurants, and other properties that are in various stages of construction by the landlord. The Company will determine the classification as of the lease commencement date, but currently expects these under construction leases to be operating leases. Soho House Design is involved to varying degrees in the design of these leased properties under construction. For certain of these leases, the Soho House Design team is acting as the construction manager on behalf of the landlord. Pending significant completion of all landlord improvements and final execution of the related lease, the Company expects these leases to commence in fiscal years ending 2022, 2023 and 2026. The Company estimates the total undiscounted lease payments for the leases commencing in fiscal years 2022, 2023 and 2026 will be $488 million, $361 million, and $133 million, respectively, with weighted-average expected lease terms of 23 years, 19 years, and 25 years for 2022, 2023 and 2026, respectively.
The following summarizes the Company’s estimated future undiscounted lease payments for current leases under construction, including properties where the Soho House Design team is acting as the construction manager:
Financing Obligation
In April 2017, the Company entered into an agreement to sell a property in downtown Los Angeles (“DTLA property”) for $30 million with $9 million contingently held back by the buyer. The Company simultaneously entered into an agreement to lease the land and building back from the buyer. As an incentive to enter the lease, the buyer has committed to provide an additional $59 million of funding towards the development of the property, which includes the contingent proceeds held back upon the sale. This lease agreement has an original lease term of 20 years, with two 10-year renewal options. The lease payments for the original lease term and both renewal options, if exercised, are $6.4 million per year, adjusted upward for local inflation rates that will not be less than 2% increase per year.
The Company determined that the buyer/lessor did not obtain control of the property after the sale and will not obtain control throughout the construction period and subsequent leaseback period. Therefore, the transaction is accounted for as a financing obligation, and the Company will continue to recognize the building on its consolidated balance sheets. The Company also recognized a financing obligation for any funding received from the buyer/lessor along with accrued interest over the construction period. There was no current portion of the financing obligation as of January 2, 2022 and January 3, 2021. The non-current portion of the financing obligation was $76 million and $74 million as of January 2, 2022 and January 3, 2021, respectively.
Costs incurred related to the development of the property were capitalized as incurred as a component of construction in progress. During the construction period, interest was capitalized at the 9% interest rate implicit in the lease. At the end of September 2019, the construction was complete and the property opened for business. Upon completion of construction, the balance of construction in progress was reclassified to depreciable asset classes within property and equipment, net. After the completion of construction, the Company expenses interest using the effective interest method in the period incurred. As of January 2, 2022 and January 3, 2021, the Company has capitalized $87 million and $90 million, respectively, pertaining to the DTLA property.
The following information represents supplemental disclosure for the statement of cash flows related to the financing obligation for the DTLA property:
The following summarizes the Company's future undiscounted lease payments for the DTLA property:
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Revenue Recognition |
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| Revenue Recognition [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue Recognition | 7. Revenue Recognition
Disaggregated revenue disclosures for the fiscal years ended January 2, 2022, January 3, 2021, and December 29, 2019 are included in Note 21, Segments.
Revenue from membership fees, one-time registration fees and build-out contracts are the only arrangements for which revenue is recognized over time. Revenue from these sources combined accounted for 36%, 50%, and 26% of the Company's revenue for the fiscal years ended January 2, 2022, January 3, 2021, and December 29, 2019, respectively.
The following table includes estimated revenues expected to be recognized in the future related to performance obligations that were unsatisfied (or partially unsatisfied) at the end of the reporting period ending January 2, 2022.
All consideration from contracts with customers is included in the amounts presented above.
The following table provides information about contract receivables, contract assets and contract liabilities from contracts with customers:
Contract assets consist of accrued unbilled income related to build-out contracts and are recognized in prepaid expenses and other current assets on the consolidated balance sheets. Refer to Note 8, Prepaid Expenses and Other Current Assets. All contract assets recognized as of December 29, 2019 of $11 million were billed to customers and transferred to receivables as of January 3, 2021. All contract assets as of January 3, 2021 of $8 million were billed to customers and transferred to receivables as of January 2, 2022.
Contract liabilities include deferred membership revenue, hotel deposits (which are presented in accrued liabilities on the consolidated balance sheets), and gift vouchers. Significant changes in contract liabilities balances during the period are as follows:
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Prepaid Expenses and Other Current Assets |
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| Prepaid Expense and Other Assets, Current [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Prepaid Expenses and Other Current Assets | 8. Prepaid Expenses and Other Current Assets
The table below presents the components of prepaid expenses and other current assets.
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Property and Equipment, Net |
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| Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Property and Equipment, Net | 9. Property and Equipment, Net
Property and equipment is comprised of the following:
The Company recorded depreciation expense of $69 million, $56 million, and $47 million in the fiscal years ended January 2, 2022, January 3, 2021, and December 29, 2019, respectively, which is included in depreciation and amortization in the accompanying consolidated statements of operations.
The Company reviews long-lived assets for impairment when changes in circumstances indicate that the asset's carrying value may not be recoverable. As a result of the COVID-19 pandemic and the related temporary House closures in Fiscal 2020, the Company reviewed its long-lived assets for impairment and determined there were no recoverability concerns, except for Little House Mayfair Apartments, the carrying value of which was determined to not be recoverable. As a result, the Company calculated the fair value of Little House Mayfair Apartments and recognized an impairment loss of less than $1 million during the fiscal year ended January 3, 2021. |
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Goodwill and Intangible Assets |
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| Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Goodwill and Intangible Assets | 10. Goodwill and Intangible Assets
A summary of goodwill for each of the Company’s applicable reportable segments from December 30, 2018 to January 2, 2022 is as follows:
The opening goodwill balance originates from the acquisition of Soho House Holdings Limited by affiliates of the Yucaipa Companies, LLC, as described in Note 2, Summary of Significant Accounting Policies – Goodwill. There were no goodwill impairment charges during the fiscal years ended January 2, 2022, January 3, 2021, and December 29, 2019.
A summary of finite-lived intangible assets as of January 2, 2022 and January 3, 2021 is as follows:
Refer to Note 3, Acquisitions, for information on additional intangible assets recognized during the fiscal year ended January 2, 2022 in connection with the Cipura Acquisition, Mandolin Acquisition, and the LINE and Saguaro Acquisition.
Accumulated amortization as of January 2, 2022 totaled $46 million for Brand, $8 million for Membership list, $1 million for hotel management agreement, and $25 million for Website, internal-use software development costs, and other. Accumulated amortization as of January 3, 2021 totaled $41 million for Brand, $7 million for Membership list and $17 million for Website, internal-use software development costs, and other.
Included within website, internal-use software development costs, and other are capitalized website development costs and internal-use software, net of accumulated amortization, which totaled $29 million and $24 million as of January 2, 2022 and January 3, 2021, respectively.
Amortization expense related to the intangible assets totaled $15 million, $14 million, and $10 million in the fiscal years ended January 2, 2022, January 3, 2021, and December 29, 2019, respectively. The following table represents estimated aggregate amortization expense for each of the next five fiscal years:
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Accrued Liabilities and Other Current Liabilities |
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| Payables and Accruals [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accrued Liabilities and Other Current Liabilities | 11. Accrued Liabilities and Other Current Liabilities
The table below presents the components of accrued liabilities.
Included in trade, capital and other accruals is $1 million and $2 million as of January 2, 2022 and January 3, 2021, respectively, related to social security taxes that were deferred as a result of government relief afforded by the COVID-19 pandemic which have not yet been paid.
The balance of other current liabilities on the consolidated balance sheet as of January 3, 2021 includes a contingent liability of $12 million associated with membership credits issued beginning in March 2020 (refer to Note 18, Commitments and Contingencies, for more information). |
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Debt |
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| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt | 12. Debt
Debt balances, net of debt issuance costs, are as follows:
(1) The Company does not believe that there are any material potential effects on financial reporting of the market-wide migration away from LIBOR, which was phased out at the end of calendar year 2021, to alternative reference rates. As of January 2, 2022, the Company did not have any outstanding debt balances with associated LIBOR rates. To the extent such debt balances arise, the Company plans to replace the LIBOR benchmark rate with another benchmark rate, such as the SONIA.
Property mortgage loans, net of debt issuance costs, are as follows:
Related party loans, net of current portion and imputed interest, are as follows:
The weighted-average interest rate on fixed rate borrowings was 8% as of January 2, 2022 and 7% as of January 3, 2021. The weighted-average interest rate on floating rate borrowings was 7% as of January 3, 2021; there were no outstanding floating rate borrowings as of January 2, 2022.
Debt
The descriptions below show the financial instrument amounts in the currency of denomination with USD equivalent in parentheses, where applicable, translated using the exchange rates in effect at the time of the respective transaction.
On September 27, 2013, the Company entered into a £25 million ($31 million) floating rate revolving credit facility which originally matured in , of which £18 million ($28 million) related to SHG Acquisition (UK) Limited and subsidiaries and $10 million related to the US subsidiaries. In February 2016, the Company modified the revolving credit facility to increase the capacity to £30 million ($38 million). In April 2017, the Company renewed the revolving credit facility for a period of and a half years and increased the total availability under the facility to £35 million ($46 million). The Company incurred interest expense of $3 million on this facility during the fiscal year ended December 29, 2019. The facility was terminated on December 9, 2019 and replaced with a new facility described below. As a result of the termination, the Company wrote off unamortized debt issuance costs of less than $1 million; this write-off is included in interest expense, net in the consolidated statements of operations.
On December 5, 2019, the Company entered into a £55 million ($72 million) floating rate revolving credit facility (the "Revolving Credit Facility") with a maturity date of January 25, 2022. In April 2020, the Company secured an additional £20 million ($25 million) of liquidity under this facility and extended the maturity until . As of January 3, 2021, the Company had £14 million ($19 million) remaining to draw against this facility. During the fiscal year ended January 2, 2022, the Company repaid the entire outstanding balance of the facility with proceeds from the IPO. As of January 2, 2022, £71 million ($96 million) is available to draw under this facility, with £4m ($6 million) utilized as a letter of guarantee in respect of one of the Company's lease agreements. The facility is secured on a fixed and floating charge basis over certain assets of the Company. The Company incurred interest expense of $3 million, $4 million, and less than $1 million on this facility during the fiscal years ended January 2, 2022, January 3, 2021, and December 29, 2019 respectively. On November 15, 2021, Soho House Bond Limited, a wholly-owned subsidiary of the Company entered into the First Amended and Restated Revolving Facility Agreement (the "First Amendment"). The First Amendment amended the Revolving Credit Facility to, among other things, change the reference rate under the Revolving Credit Facility for borrowings denominated in pounds sterling from a LIBOR-based rate to a SONIA-based rate and to transition reporting from accounting principles generally accepted in the United Kingdom to accounting principles generally accepted in the United States of America. The First Amendment also reset the Company's Consolidated EBITDA (as defined in the Revolving Credit Facility) test levels, scaling from £0 at December 31, 2021 to £32.0 million ($44 million, if translated using the average exchange rate in effect during the fiscal year ended January 2, 2022) after June 30, 2022. On February 11, 2022, Soho House Bond Limited, a wholly-owned subsidiary of the Company, entered into the Second Amended and Restated Revolving Facility Agreement (the “Second Amendment”), which amends and restates the Revolving Credit Facility. The Second Amendment amends the Revolving Credit Facility to extend the maturity date from January 25, 2023 to January 25, 2024.
In April 2017, the Company entered into the Permira Senior Facility, which consisted of a £275 million ($345 million) senior secured loan with an interest rate of LIBOR (subject to a floor of 1%) + 8%. A portion of the interest was in the form of payment-in-kind interest, with the accrued interest being converted to capital outstanding on the loan at each interest payment date. The Permira Senior Facility was secured on a fixed and floating charge basis over the assets of the Company. As of January 3, 2021, the Company had £397 million ($ million) due under the Permira Senior Facility, which was initially scheduled to mature in , however the maturity date was subsequently extended until . The Company incurred interest expense of $13 million, $51 million, and $43 million (including payment-in-kind interest of zero, $26 million, and $14 million) during the fiscal years ended January 2, 2022, January 3, 2021, and December 29, 2019 respectively. In March 2021, the Company repaid in full the balance outstanding under the Permira Senior Facility, consisting of a GBP tranche with an outstanding principal balance, including accrued payment-in-kind interest, of £368 million ($505 million); a USD tranche with an outstanding principal balance, including accrued payment-in-kind interest, of $8 million, and an EUR tranche with an outstanding principal balance, including accrued payment-in-kind interest, of €45 million ($53 million). As a result of the repayment, the Company recognized a loss on extinguishment of debt of $14 million, consisting of prepayment penalties of $4 million, write-offs of unamortized debt issuance costs of $5 million, and an exit fee of $5 million. Upon repayment of the facility, the Company also settled accrued payment-in-kind interest totaling $79 million. The loss on extinguishment of debt is reflected in interest expense, net on the consolidated statements of operations for the fiscal year ended January 2, 2022.
In January 2018, the Company entered into leases in connection with its Greek Street properties. As part of these leases, the landlord has funded a principal amount of £5 million ($7 million), which represents costs paid directly by the landlord which will be repaid by the Company. Amounts funded by the landlord prior to the lease inception date were initially reflected as accrued liabilities and subsequently converted into long-term debt upon execution of the respective agreements. The Greek Street loans carry interest of 7.5%, are due for repayment in January 2028 and are unsecured. The Company incurred interest expense of less than $1 million during each of the fiscal years ended January 2, 2022, January 3, 2021, and December 29, 2019.
In June 2018, the Company received proceeds of $6.5 million from the landlord of the Soho House Hong Kong property under a loan agreement. The loan had a 5-year term, with an interest rate of LIBOR + 7% payable annually, and all principal payments due at maturity. The Company incurred interest expense of less than $1 million during each of the fiscal years ended January 2, 2022, January 3, 2021, and December 29, 2019. In September 2021, the Company repaid in full amounts outstanding under the Soho House Hong Kong loan.
On April 24, 2020, the Company entered into an unsecured promissory note under the Paycheck Protection Program (the “PPP”), with a principal amount of $22 million. The loan had a January 2023 maturity date and was subject to a 1% interest rate. The PPP was established under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) and was administered by the US Small Business Administration (the “SBA”). The Company repaid all amounts outstanding under the US government-backed bank loan in March 2021. The Company incurred interest expense of less than $1 million during each of the fiscal years ended January 2, 2022 and January 3, 2021.
On March 31, 2021, Soho House Bond Limited, a wholly-owned subsidiary of the Company, issued pursuant to a Notes Purchase Agreement senior secured notes, which were subscribed for by certain funds managed, sponsored or advised by Goldman Sachs & Co. LLC or its affiliates, in aggregate amounts equal to $295 million, €62 million ($73 million) and £53 million ($73 million) (the “Initial Notes”). The Notes Purchase Agreement includes an option to issue, and a commitment on the part of the purchasers to subscribe for, further notes in one or several issuances on or prior to March 31, 2022 in an aggregate amount of up to $100 million (the “Additional Notes” and, together with the Initial Notes, the “Senior Secured Notes”). The Senior Secured Notes mature on March 31, 2027 and bear interest at a fixed rate equal to a cash margin of 2.0192% per annum for the Initial Notes or 2.125% per annum for any Additional Notes, plus a payment-in-kind (capitalized) margin of 6.1572% per annum for the Initial Notes or 6.375% per annum for any Additional Notes. The Senior Secured Notes issued pursuant to the Notes Purchase Agreement may be redeemed and prepaid for cash, in whole or in part, at any time in accordance with the terms thereof, subject to payment of redemption fees. The Senior Secured Notes are guaranteed and secured on substantially the same basis as our Revolving Credit Facility. The Company incurred transaction costs of $12 million related to the Senior Secured Notes. During the fiscal year ended January 2, 2022, the Company incurred interest expense of $30 million related to the Senior Secured Notes. On November 15, 2021, Soho House Bond Limited entered into the First Amended and Restated Note Purchase Agreement (the "First Note Agreement"). The First Note Amendment amended the Notes Purchase Agreement to, among other things, transition reporting from accounting principles generally accepted in the United Kingdom to accounting principles generally accepted in the United States of America.
In December 2019, the Company entered into a credit facility with Compagnie de Phalsbourg LLC. As of January 2, 2022, the Company had drawn a total of €5 million ($6 million) under this facility. The facility matures in and carries an interest rate of 7%. The Company incurred interest expense of less than $1 million and less than $1 million during the fiscal years ended January 2, 2022 and January 3, 2021, respectively.
In August 2020, the Company entered into a loan agreement with Optima Bank to borrow €2 million ($2 million). The loan matures in and carries an interest rate of 4.1%. The Company incurred interest expense of less than $1 million during each of the fiscal years ended January 2, 2022 and January 3, 2021.
In August 2020, the Company entered into a loan with the government of Greece for a principal amount of €2 million ($2 million). The loan matures in and carries an interest rate of 3.1%. The Company incurred interest expense of less than $1 million during each of the fiscal years ended January 2, 2022 and January 3, 2021.
On June 1, 2021, certain subsidiaries of the Company entered into a development funding agreement with Dorncroft Limited, the landlord of Soho Farmhouse. The agreement provides a commitment of up to £9 million ($12 million) for certain improvements at the Farmhouse property. As of January 2, 2022, the Company had drawn a total of £5 million ($6 million) under the development funding agreement. Interest on the balance drawn under the agreement accrues at an annual rate of 7.9% per annum and is added to the loan principal balance. The facility expires on the earlier of July 31, 2022 or the completion date for the planned development activities. The facility is guaranteed by SHG Acquisition (UK) Limited. The Company incurred interest expense of less than $1 million during the fiscal year ended January 2, 2022.
Property Mortgage Loans
In February 2019, the Company refinanced an existing term loan and mezzanine loan associated with a March 2014 corporate acquisition of Soho Beach House Miami with a new term loan and mezzanine loan. The new term loan of $55 million and mezzanine loan of $62 million are secured on the underlying property and operations of Soho Beach House Miami and are due in February 2024. The loans bear interest at 5.34% and 7.25%, respectively. The Company incurred interest expense on these facilities of $8 million, $8 million, and $7 million during the fiscal years ended January 2, 2022, January 3, 2021, and December 29, 2019, respectively.
Related Party Loans
In 2017, Soho Works Limited entered into a term loan facility agreement with two individuals who are the holders of the Company’s redeemable preferred shares related to a £40 million term loan facility. The SWL loan bears interest at 7% and matures at the earliest of: (a) September 29, 2022; (b) the date of disposal of the whole or substantial part of the Soho Works Limited; (c) the date of sale by the shareholders of the entire issued share capital of Soho Works Limited to a third party; (d) the date of the admission of Soho Works Limited to any recognized investment exchange or multi-lateral trading facility; and (e) any later date that the two individuals may determine in their sole discretion. In December 2019, Soho Works Limited drew £11 million ($14 million) under the facility. During Fiscal 2021, Soho Works Limited drew an additional £2 million ($3 million) under the facility. The carrying amount of the term loan was £16 million ($21 million) and £13 million ($18 million) as of January 2, 2022 and January 3, 2021, respectively. The Company incurred interest expense on this facility of $2 million, $2 million, and less than $1 million during the fiscal years ended January 2, 2022, January 3, 2021, and December 29, 2019, respectively.
In August 2020, the Company entered into a non-interest bearing loan agreement with a noncontrolling interest shareholder of certain of its subsidiaries in Greece for a principal amount of less than €1 million ($1 million). The shareholder loan was initially scheduled to mature in December 2021, however the maturity date was subsequently extended until December 2022. The shareholder loan has an effective interest rate of 4% and is presented within current portion of related party loans on the consolidated balance sheets.
Shareholders of the Company provided £19 million unsecured, non-interest bearing loan notes. The loan notes constituted unsecured obligations, and the rights of the noteholders under such loan notes were contractually subordinated to any secured senior indebtedness of the Company. In May 2020, the loan notes were settled in exchange for 2,176,424 A ordinary shares of SHHL. Prior to settlement, the loan notes had an effective interest rate of 10%. The Company recognized effective interest expense of $2 million and $2 million on these loan notes during the fiscal years ended January 3, 2021 and December 29, 2019, respectively.
Debt Issuance Costs
Property mortgage loans due after more than one year are net of unamortized debt issuance costs of $2 million and $2 million as of January 2, 2022 and January 3, 2021, respectively. Other loans are net of unamortized debt issuance costs of less than $1 million and less than $1 million as of January 2, 2022 and January 3, 2021, respectively. The revolving credit facility was net of unamortized debt issuance costs of $2 million as of January 3, 2021; as of January 2, 2022, $1 million of unamortized debt issuance costs have been included within prepaid expenses and other current assets on the consolidated balance sheet, following repayment in full of the outstanding balance of the facility. The Permira Senior Facility was net of unamortized debt issuance costs of $5 million as of January 3, 2021. The Senior Secured Notes are net of unamortized debt issuance costs of $10 million as of January 2, 2022.
Future Principal Payments
The following table presents future principal payments for the Company’s debt, property mortgage loans, and related party loans as of January 2, 2022:
Financial Covenants
Some of the Company’s debt instruments contain a number of covenants that restrict the Company’s ability to incur debt in excess of calculated amounts, ability to make distributions under certain circumstances and generally require the Company to maintain certain financial metrics, such as leverage and minimum working capital levels. Failure for the Company to comply with the financial covenants contained in the debt instruments could result from, among other things, changes in its statement of operations, the incurrence of additional debt or changes in general economic conditions.
If the Company violates the financial covenants contained in the debt instruments, the Company may attempt to negotiate waivers of the violations or amend the terms of the applicable instruments, however, the Company can make no assurance that it would be successful in any such negotiations or that, if successful in obtaining waivers or amendments, such amendments or waivers would be on terms attractive to the Company.
As of January 2, 2022, the Company was in compliance with all debt covenants, current on all payments and not otherwise in default under any of the Company’s debt instruments. |
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Fair Value Measurements |
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| Fair Value Measurements | 13. Fair Value Measurements
Recurring and Non-recurring Fair Value Measurements
There were no assets or liabilities measured at fair value on a recurring or non-recurring basis as of January 2, 2022. There were no assets or liabilities measured at fair value on a recurring or non-recurring basis as of January 3, 2021 with the exception of Little House Mayfair Apartments for which the Company recognized an impairment loss during the fiscal year ended January 3, 2021 as discussed in Note 9, Property and Equipment, Net.
Fair Value of Financial Instruments
The Company believes the carrying values of its financial instruments related to current assets and liabilities approximate fair value due to short-term maturities.
The Company has estimated the fair value of the Senior Secured Notes as of January 2, 2022 using a discounted cash flow analysis. With respect to the fair value of the Permira Senior Facility as of January 3, 2021, the Company does not believe that its financial performance or creditworthiness changed significantly since the inception of the facility, which was issued at par with a floating interest rate of LIBOR (subject to a floor of 1%) + 7%. Given the nature of this floating rate obligation and the stability of the Company’s creditworthiness, the carrying value (excluding debt issuance costs of $5 million as of January 3, 2021) closely approximated the Permira obligation’s fair value prior to the repayment of the Permira Senior Facility in March 2021.
The fair value of the remaining debt is estimated to be equal to the current carrying value of each instrument based on a comparison of each instrument’s contractual terms to current market terms. The Company does not believe that the use of different market inputs would have resulted in a materially different fair value of debt as of January 2, 2022 and January 3, 2021.
The following table presents the estimated fair values (all of which are Level 3 fair value measurements) of the Company’s debt instruments with maturity dates in 2022 and thereafter:
The carrying values of the Company’s other non-current liabilities and non-current assets approximate their fair values. |
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Share-Based Compensation |
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| Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Share-Based Compensation | 14. Share-Based Compensation
In January 2012, in conjunction with the Acquisition, Soho House & Co Limited issued 4,469,417 B ordinary shares to its founder and CEO, with a weighted-average grant date fair value of $0.33 (£0.21) per share. These shares were restricted upon issuance and were scheduled to vest annually in equal installments over a five-year service period, or cliff-vest at the time of a change of control transaction, if earlier. This issuance of shares was accounted for similar to a stock option due to the consideration associated with the shares being due at the time of such shares being transferred or sold or, if earlier, December 31, 2020. All B ordinary shares became fully vested on January 12, 2017 and the Company received payment in full for the stock issuance. No share-based compensation expense has been recognized with respect to the B ordinary shares in any of the periods presented.
In August 2020, the Company established the 2020 Equity and Incentive Plan (the “2020 Plan”) under which SHHL Share Appreciation Rights (“SARs”) and SHHL Growth Shares were issued to certain employees. The awards are settled in SHHL ordinary D shares and the Company can grant up to 9,978,143 SHHL ordinary D shares under the 2020 Plan. In connection with the IPO in July 2021, 25% of the outstanding awards accelerated in accordance with the original plan and all of the outstanding awards were exchanged into awards that will be settled in Class A common stock of MCG. As a result of the exchange, 7,127,246 SHHL SARs were converted into 6,023,369 MCG SARs and 2,850,897 SHHL Growth Shares were converted into 781,731 MCG restricted stock awards. The exchanged awards are subject to the same vesting conditions as the original awards. The Company treated the exchange as a Type I probable-to-probable modification and measured the incremental cost of $5 million. The expense for accelerated awards and the incremental cost associated with vested awards of $13 million was recognized immediately upon the exchange.
In July 2021, the Company established its 2021 Equity and Incentive Plan (the "2021 Plan"). The 2021 Plan allows for grants of nonqualified stock options, SARs, and RSUs, or performance awards. There were 12,107,333 shares initially available for all awards under the 2021 Plan and the shares available will increase annually on the first day of each calendar year, beginning with the calendar year ending December 31, 2022. As of January 2, 2022, there were 9,484,456 shares available for future awards.
SHHL SARs and SHHL Growth Shares granted during 2020 under the 2020 Plan were scheduled to vest annually in equal installments over a four-year period, or cliff-vest at the time of a change of control transaction, if earlier. Upon a Qualifying IPO event (initial public offering where primary and secondary proceeds exceed $100 million), the 2020 Plan allowed for up to one year of vesting to accelerate. SHHL SARs had a base price per share of $10.523 and a contractual term of 10 years. According to the provisions of the 2020 Plan, exercised SHHL SARs would be settled in cash upon a change of control and in ordinary shares upon an IPO event. SHHL Growth Shares would be settled in D ordinary shares and were scheduled to vest upon a change in control or an IPO event. All awards issued under the 2020 Plan are accounted for as equity classified awards.
In July 2021, the Company granted 2,115,887 RSUs to employees and Board members under the 2021 Plan. The RSUs vest in two equal installments on the and anniversaries of the grant date, with the exception of RSUs granted to certain executives, which vest in four equal installments on the , , , and anniversaries of the grant date. In December 2021, the Company granted 506,990 RSUs to certain employees that will vest over a month. As of January 2, 2022, there were 2,622,877 RSUs outstanding under the 2021 Plan. All RSUs are accounted for as equity classified awards.
Share-based compensation during the fiscal years ended January 2, 2022 and January 3, 2021 was recorded in the consolidated statements of operations within general and administrative expense as shown in the following table:
There was no share-based compensation expense recognized for the fiscal year ended December 29, 2019.
The weighted-average assumptions used in valuing SARs and restricted stock awards (previously granted as Growth Shares) granted during each period are set forth in the following table:
(1) The expected average life assumption is based on the Company's expectation for a liquidity event as a grant date. (2) The expected volatility assumption is developed using leverage-adjusted historical volatilities for public peer companies for the period equal to the expected average life of the awards. (3) The risk-free rate is based on the US Treasury Rate Yield Curve Rate as of the grant date with maturities equal to the expected average life of the awards. (4) The expected dividend yield is 0.0% since the Company does not expect to pay dividends.
The weighted-average grant date fair values for SARs granted during the fiscal years ended January 2, 2022 and January 3, 2021 were 4.43 and $3.46, respectively. There were no SARs granted during the fiscal year ended December 29, 2019.
The following table shows a summary of all SARs granted under the 2020 Plan:
As of January 2, 2022, total compensation expense not yet recognized related to unvested SARs issued under the 2020 Plan was approximately $14 million, which is expected to be recognized over a weighted average period of 1.79 years.
The following table shows a summary of all restricted stock awards (previously granted as Growth Shares) granted under the 2020 Plan:
As of January 2, 2022, total compensation expense not yet recognized related to unvested restricted stock awards (Growth Shares) was approximately $4 million, which is expected to be recognized over a weighted average period of 1.64 years.
The following table shows a summary of all RSUs granted under the 2021 Plan:
(1) The amount of share-based compensation for the RSUs is based on the fair value of our Class A common stock at the grant date.
As of January 2, 2022, total compensation expense not yet recognized related to unvested RSUs under the 2021 Plan was approximately $23 million, which is expected to be recognized over a weighted average period of 3.02 years. 15. SHHL Redeemable Preferred Shares
In May 2016, the Company issued 10,000,000, 7% SHHL redeemable preferred shares totaling £10 million ($15 million) to unrelated parties. These shares were redeemable by the holders upon an exit, such as an IPO, or sale of the Company and the cumulative dividends are only paid on redemption. As of January 3, 2021, redemption of the preferred shares was not probable. During the second quarter of Fiscal 2021, the Company concluded that the shares were probable of becoming redeemable and, therefore, accreted the shares to their redemption value. The accretion of $5 million is reflected as a reduction in additional paid-in capital on the consolidated statements of changes in redeemable shares and shareholders’ equity (deficit). In addition, the Company remeasured the SHHL redeemable preferred shares and recognized a foreign currency translation gain of $1 million for the fiscal year ended January 2, 2022, which is reflected within accumulated deficit on the consolidated statements of changes in redeemable shares and shareholders’ equity (deficit). The Company redeemed these preferred shares for cash totaling $20 million in July 2021.
On March 31, 2021, the Company issued 12,970,766 senior convertible preference shares (the “Senior Preference Shares”) in an aggregate liquidation preference of $175 million, or approximately $13.49 per Senior Preference Share (the “Issuance Price”), to certain funds managed, sponsored or advised by Goldman Sachs & Co. LLC or its affiliates (the “Preference Share Investors”). The Company received net proceeds of $162 million and incurred transaction costs of $13 million related to the Senior Preference Shares. The Senior Preference Shares accrue a non-cash dividend of 8% per annum on the investment amount of the Senior Preference Shares plus all previously compounded non-cash dividends. During the fiscal year ended January 2, 2022, the Company recognized non-cash preferred dividends of $4 million as an adjustment to the carrying value of the Senior Preference Shares, with a corresponding reduction in additional paid-in capital on the consolidated statements of changes in redeemable shares and shareholders’ equity (deficit). In addition, the Company recognized a deemed dividend of $51 million in connection with the conversion of the Senior Preference Shares into Class A common stock, because the conversion was effected at a discount to the public offering price. This deemed dividend is reflected as a reduction in additional paid-in capital on the consolidated statements of changes in redeemable preferred shares and shareholders' equity (deficit).
On July 19, 2021, all of the outstanding Senior Preference Shares were converted into an aggregate of 15,526,619 shares of Class A common stock of MCG immediately upon the closing of the IPO (as described in Note 1, Nature of the Business). 16. SHHL C Ordinary Shares
On August 23, 2019, the Company issued 4,276,347 SHHL redeemable C ordinary shares to an unrelated third party for a total subscription price of $45 million. On the same date, the new investor purchased 475,150 SHHL A ordinary shares directly from Mr. Nick Jones for $5 million; these shares were immediately converted into an equal number of SHHL redeemable C ordinary shares. On November 4, 2019, the Company issued an additional 2,181,507 shares to the same investor for $20 million, resulting in a total of 6,933,004 SHHL redeemable C ordinary shares issued and outstanding as of December 29, 2019. The Company received net proceeds of $63 million and incurred $5 million of share issuance costs in connection with these transactions.
On May 19, 2020, the Company issued an additional 9,502,993 SHHL redeemable C ordinary shares to a different unrelated third party for a total subscription price of $100 million, net of discount of $6 million. The Company received net proceeds of $94 million and incurred $1 million of share issuance costs in connection with this issuance. As a result, the Company had 16,435,997 SHHL redeemable C ordinary shares issued and outstanding as of January 3, 2021. The Company recorded the SHHL redeemable C ordinary shares as mezzanine equity as a result of the redemption provision described below.
Upon meeting certain conditions, the holders of the SHHL redeemable C ordinary shares described above had the option to redeem all of the shares between October 1, 2023 and March 31, 2024 with respect to the shares issued in August 2019 or between August 23, 2023 and February 23, 2024 with respect to the shares issued in May 2020, provided that the Company had not completed a public listing of its shares prior to the beginning of the respective redemption period. The redemption amount would be determined using a 5% stated rate of return on the holders’ aggregate subscription price, calculated for the period between August 23, 2019 (or May 19, 2020 for the subsequent issuance) and the redemption date. As of January 3, 2021, redemption of the SHHL redeemable C ordinary shares was not probable and, therefore, the Company recorded the shares at their original issuance price and has not accreted the shares to their redemption value.
An investor option was provided in conjunction with the SHHL redeemable C ordinary shares issued on May 19, 2020. In March 2021, the investor option was exercised for the full $50 million, net of a discount of $3 million, and the Company issued an additional 4,751,497 SHHL redeemable C ordinary shares. The Company received net proceeds of $47 million and did not incur any material share issuance costs in connection with this issuance. As a result, the Company had 21,187,494 SHHL redeemable C ordinary shares issued and outstanding immediately prior to the IPO. Redemption of these SHHL redeemable C ordinary shares was not probable as of any period preceding the IPO.
On December 8, 2020, Mr. Nick Jones sold certain of his SHHL A ordinary shares to an unrelated third party and as a condition of the transaction, the A ordinary shares were converted into 1,710,546 SHHL C ordinary shares. Unlike the previously issued SHHL redeemable C ordinary shares described above, the investor does not have the right to redeem these converted SHHL C ordinary shares. Therefore, 1,710,546 of the total 18,146,543 SHHL C ordinary shares outstanding as of January 3, 2021 were classified as permanent equity instead of mezzanine equity.
On July 19, 2021, all of the outstanding SHHL C ordinary shares were exchanged into an aggregate of 6,592,023 shares of Class A common stock and 10,871,215 shares of Class B common stock of MCG in connection with the Reorganization Transactions (as described in Note 1, Nature of the Business). 17. Loss Per Share and Shareholders’ Equity (Deficit)
Prior to the IPO, SHHL had five classes of ordinary shares: A ordinary shares , B ordinary shares, C ordinary shares (a portion of which had certain redemption rights), C2 ordinary shares and D ordinary shares.
Holders of SHHL A ordinary shares (par value of £1) were entitled to one vote for each A ordinary share held. Each A ordinary shareholder was entitled pari passu to dividend payments or any other distributions.
In January 2012, the Company issued 4,469,417 of SHHL B ordinary shares with par value of £0.0001, which had no voting rights. These shares vested annually in equal installments over a period of five years, and all shares became vested on January 12, 2017. SHHL B ordinary shareholders were entitled to income rights in proportion to the SHHL A ordinary shareholders based on the number of shares held only after £167 million ($228 million, translated using the exchange rate on January 3, 2021) had been returned in aggregate to the holders of SHHL A ordinary shares, the SHHL C ordinary shares and the SHHL C2 ordinary shares.
As described in Note 16, SHHL C Ordinary Shares, in August and November 2019, the Company issued 6,933,004 SHHL redeemable C ordinary shares (par value of £1) to the same unrelated third party in two separate transactions. The Company issued an additional 9,502,993 SHHL redeemable C ordinary shares (par value of £1) to a separate unrelated third party in May 2020. The holders of SHHL redeemable C ordinary shares were entitled to one vote for each share held. In addition, so long as certain conditions were met, each of the investors was entitled to appoint one non-executive director and one non-voting observer director to the Company’s board and also had certain veto rights with respect to a sale of the Company prior to August 23, 2024. All SHHL redeemable C ordinary shares were entitled to dividend payments or any other distributions on a pari passu basis with other classes of SHHL ordinary shares. Upon a public listing of the Company’s shares, the SHHL redeemable C ordinary shares would convert into the same class of shares as the SHHL A ordinary shares on a 1:1 basis, subject to certain anti-dilution protection, whereby the holders of the SHHL redeemable C ordinary shares would receive additional shares if the value of the as-converted SHHL redeemable C ordinary shares was less than the investors’ initial subscription price.
Separate from the SHHL redeemable C ordinary shares discussed above, in December 2020, the Company converted 1,710,546 SHHL A ordinary shares into 1,710,546 SHHL C ordinary shares which were not redeemable by the Company. These SHHL C ordinary shares did not have any voting or veto rights. The shares were entitled to dividend payments or any other distributions on a pari passu basis with other classes of SHHL ordinary shares. Upon a public listing of the Company’s shares, the SHHL C ordinary shares would convert into the same class of shares as the SHHL A ordinary shares on a 1:1 basis, subject to certain anti-dilution protection, whereby the holders of the SHHL C ordinary shares would receive additional shares if the value of the as-converted SHHL C ordinary shares was less than the investors’ initial purchase price.
In December 2019, the Company issued 3,326,048 of non-voting SHHL C2 ordinary shares with par value of £1 to an unrelated third party. The Company incurred $1 million of share issuance costs in connection with this transaction. The SHHL C2 ordinary shares were entitled to dividend payments or any other distributions on a pari passu basis with other classes of SHHL ordinary shares.
In August 2020, the Company established the 2020 Plan, under which employees received SHHL SARs and SHHL Growth Shares which would be settled in SHHL D ordinary shares (par value of £0.0001). As of January 3, 2021, there are 2,850,897 SHHL D ordinary shares issued and outstanding. The SHHL D ordinary shares did not have any voting rights. SHHL D ordinary shareholders were entitled to income and distribution rights in proportion to the SHHL A ordinary, B ordinary, C ordinary and C2 ordinary shareholders based on the number of shares held only after $1,800 million had been returned to the holders of all other classes of SHHL ordinary shares.
Immediately prior to the closing of the IPO, affiliates of The Yucaipa Companies, LLC, and Messrs. Ron Burkle, Nick Jones, and Richard Caring exchanged their SHHL A ordinary shares, SHHL B ordinary shares, SHHL C ordinary shares and SHHL D ordinary shares for 141,500,385 shares of Class B common stock of MCG having an equivalent value, while the other ordinary shareholders of SHHL exchanged their equity interests for 14,935,193 shares of Class A common stock of MCG having an equivalent value.
The table below presents changes in each class of the Company’s redeemable preferred shares, ordinary shares and common stock, as applicable:
Loss Per Share
The table below illustrates the reconciliation of the loss and the number of shares used in the calculations of basic and diluted loss per share:
The net loss attributable to the Company in calculating basic and diluted loss per share for all periods presented is adjusted for cumulative undeclared dividends on the May 2016 preferred shares. In addition, the net loss attributable to the Company in calculating basic and diluted loss per share for the fiscal year ended January 2, 2022 is adjusted for non-cash dividends on the Senior Preference Shares and the impact of the deemed dividend to the holders of Senior Preference Shares upon their conversion into MCG Class A common stock.
The loss per share calculations for the fiscal years ended January 2, 2022 and January 3, 2021 exclude additional shares that would be issuable to the holders of SHHL redeemable C ordinary shares in the event of a public listing that resulted in the value of the SHHL redeemable C ordinary shares being less than the investor’s initial subscription price, because the impact of including such additional shares would be anti-dilutive. In addition, the loss per share calculations for the fiscal years ended January 2, 2022 and January 3, 2021 exclude the impact of unvested Growth Shares (which were exchanged into restricted stock awards in connection with the IPO) because the inclusion of such shares in diluted loss per share would be anti-dilutive. 18. Commitments and Contingencies
Litigation Matters
The Company is not a party to any litigation other than litigation in the ordinary course of business. The Company’s management and legal counsel do not expect that the ultimate outcome of any of its currently ongoing legal proceedings, individually or collectively, will have a material adverse effect on the Company’s consolidated financial statements.
Commitments and Contingencies
In connection with the closure of Houses across the world beginning on March 14, 2020, the Company in its sole discretion issued membership credits to Soho House members to be redeemed for certain Soho House products and services. Membership credits were issued by the Company as a one-time goodwill gesture deemed to be a marketing offer to Soho House members, and were initially set to expire on December 31, 2020. The liability associated with the membership credits is derecognized based on the usage of credits and the cost of the inventory or services to fulfill the Company’s obligation to its Soho House members; this liability is classified within other current liabilities on the Company’s consolidated balance sheet. In December 2020, the Company made the decision in its sole discretion to extend the expiration date to June 30, 2021 as a result of the continuing impact of the COVID-19 pandemic, resulting in a significant number of the Houses remaining closed or operating at a reduced capacity for longer periods than the Company originally expected. In March 2021, the Company decided in its sole discretion to further extend the expiration date to September 30, 2021. The Company simultaneously adjusted its obligation based on its best estimate of the cost to be incurred. The redemption rate used to estimate the obligation associated with the membership credits was based on the Company’s cumulative experience to-date. Accordingly, an estimated liability of $12 million was accrued as of January 3, 2021. There were associated marketing expenses of $8 million and $12 million during the fiscal years ended January 2, 2022 and January 3, 2021, respectively, which are included within other expense in the consolidated statements of operations. The expense recognized during the fiscal year ended January 2, 2022 is net of $4 million recorded upon expiration of the vast majority of credits on September 30, 2021.
On December 7, 2017, 139 Ludlow Acquisition LLC entered into a loan agreement with Natixis Real Estate Capital LLC. The borrower is a joint venture owned in equal thirds by Soho 139 Holdco, LLC (an entity controlled by the Company) and its two partners. Pursuant to the loan agreement, the lender advanced $33.5 million, the bulk of which proceeds were used to extinguish and refinance the borrower’s previous mortgage loan with Centennial Bank. The loan is secured with a first priority mortgage and security interest on the real property known as 139 Ludlow Street, New York (including an assignment of leases and rents and other customary mortgage documents). The loan is generally “non-recourse”, but subject to standard “carve-outs” for which US AcquireCo, Inc. (a wholly-owned subsidiary of the Company) and its joint venture partners (the “Guarantors”) provided a guarantee of recourse obligations, pursuant to which such Guarantors are jointly and severally obligated to pay (without any cap or limit) the amounts of any actual loss, damage, cost, expense, liability, claim or other obligation incurred by the lender.
In August 2014, the Company entered into a security arrangement with regards to Raycliff Red LLP’s (a VIE’s) £4 million ($7 million) bank loan to redevelop a property into an overflow location for Shoreditch House hotel rooms in the United Kingdom. In May 2016, the VIE extended the existing loan to £10 million ($15 million) to, inter alia, purchase an adjoining property that was redeveloped as an overflow location for Shoreditch House hotel rooms. In May 2017, the VIE extended the existing loan to £20 million ($26 million). In July 2018, the facility was extended by a further £0.4 million ($0.5 million). The Company has provided security in respect of the loan by granting the lender a charge over its membership interest in the VIE. The security will remain in effect until the VIE’s bank loan is repaid in full to the lender. In October 2019, the VIE entered into a term loan facility agreement with a new lender, the proceeds of which were used to repay the previous bank loan. As of January 2, 2022, the outstanding balance of the VIE’s term loan was £21 million ($29 million). The Company has provided security in respect of the term loan by granting the lender a charge over its membership interest in the VIE. The security will remain in effect until the VIE’s term loan is repaid in full to the lender.
In January 2014, the Company committed to invest €10 million ($14 million) in Soho House Barcelona, for the entity to redevelop a property into Soho House Barcelona in Spain. As of January 1, 2017, the Company had advanced €10 million ($10 million) of its commitment, of which €5 million ($5 million) was in cash and €5 million ($5 million) was in the form of a convertible loan (which converted to shares on November 30, 2016). There was no further activity during the fiscal year ended December 30, 2018. The cash loan matured on September 30, 2019 and was converted into shares in December 2019. Following its redevelopment, the Company began operating the property in October 2016 and has agreed to meet certain performance targets in the first five years of operations. If unmet, the Company must cure any performance shortfall for a maximum exposure of €4.4 million ($5 million) in 2019 and adjusted for inflation every year thereafter.
On November 18, 2016, an existing mortgage loan over the Soho House Barcelona property was novated by the VIE to Banca March and extended to a total commitment of €18 million ($19 million). This loan was further extended to a total commitment of €39.5 million ($45 million) on March 21, 2019, and a portion of the proceeds was used to redeem an existing €18 million ($20 million) mezzanine facility from Orca Finance and Invest Ltd to Mirador Barcel S.L. The Banca March loan is secured by way of mortgage over Soho House Barcelona.
In June 2018, the Company issued a Letter of Guarantee, secured by The Hongkong and Shanghai Banking Corporation Limited, Hong Kong, in place of a cash deposit totaling HKD 40.6 million ($5 million) to the landlord of Soho House Hong Kong in connection with the lease of the property. Subject to certain criteria, the bank guarantee reduces annually to HKD 32.4 million ($4 million) on the first anniversary of the Letter of Guarantee and HKD 24.3 million ($3 million) on the second anniversary. In addition, in June 2018, Soho House (Hong Kong) Limited drew down $6.5 million pursuant to a loan agreement with Bright Success Investment Limited dated July 12, 2017 (as amended June 1, 2018 and March 7, 2019). In September 2021, the Company repaid in full amounts outstanding under the Soho House Hong Kong loan. For additional information, refer to Note 12, Debt.
Certain subsidiaries of the Company guarantee the obligations of Soho Restaurants Limited (and its subsidiaries) under eight property leases (the “Soho Restaurants Guarantees”) with respect to any required rental or other payments under these guaranteed leases. The Soho Restaurants Guarantees are historical lease guarantees that have remained in place following the spin out of Soho Restaurants Limited from the Company in December 2017. The lease guarantees are predominantly lease term guarantees. The maximum exposure under these guarantees is $1 million in any given year. While the Company incurred operational expenses supporting Soho Restaurants Limited, prior to its consolidation of this entity, to date the Company has not made any guarantee payments nor has it become obligated to make any payments pursuant to any Soho Restaurants Guarantee.
The Company believes the likelihood of having to perform under the aforementioned operations performance and lease guarantees was remote as of January 2, 2022 and January 3, 2021.
Capital Commitments
As of January 2, 2022, capital expenditure commitments contracted for but not yet incurred totaled less than $1 million and were related primarily to site improvement costs for Soho House West Hollywood Cecconi's. As of January 3, 2021, capital expenditure commitments contracted for but not yet incurred totaled $1 million and were related primarily to Soho House Hong Kong. 19. Defined Contribution Plan The Company operates a defined contribution pension plan, an occupational plan to which an individual and their employer make contributions. The assets of the plan are held separately from those of the Company in an independently administered fund. The plan charge amounted to $9 million, $11 million, and $10 million in the fiscal years ended January 2, 2022, January 3, 2021, and December 29, 2019, respectively. There were no outstanding or prepaid contributions at either the beginning or end of the fiscal years presented in these consolidated financial statements. 20. Income Taxes
Below are the components of loss before income taxes for the fiscal years ended January 2, 2022, January 3, 2021, and December 29, 2019 under the following tax jurisdictions:
(1) Prior to the Reorganization Transactions, Domestic refers to the UK tax jurisdiction and Foreign refers to all non-UK tax jurisdictions. Following the Reorganization Transactions, Domestic refers to the US tax jurisdiction and Foreign refers to all non-US tax jurisdictions.
The provision for income taxes is as follows:
(1) Prior to the Reorganization Transactions, Domestic refers to the UK tax jurisdiction and Foreign refers to all non-UK tax jurisdictions. Following the Reorganization Transactions, Domestic refers to the US tax jurisdiction and Foreign refers to all non-US tax jurisdictions.
A reconciliation of the US and UK statutory income tax rate to the consolidated effective income tax rate is as follows:
The effective income tax rate for the fiscal years ended January 2, 2022, January 3, 2021, and December 29, 2019 differs from the US and UK statutory rate, as applicable, of 21%, 19%, and 19%, respectively. The difference for the fiscal years ended January 2, 2022 and January 3, 2021 are primarily due to current period losses in certain jurisdictions that require an additional valuation allowance.
Deferred Income Taxes
Deferred tax assets and liabilities consist of the following:
(1) For US tax purposes, the LINE and Saguaro Acquisition transaction was considered an asset acquisition. Refer to Note 3, Acquisitions, for further information on this transaction.
Total net deferred taxes are classified as follows:
As of January 2, 2022, deferred tax assets related to tax losses were $119 million and interest limitation carryforwards were $73 million which can be used to offset future taxable income. This includes $67 million of net operating losses, or "NOLs", and $23 million of interest limitation carryforwards in the US; $35 million tax losses and $50 million interest limitation carryforwards in the UK; $4 million tax losses in the Netherlands; and $10 million tax losses in Hong Kong.
Deferred tax assets related to NOLs generated in the US of $238 million will not expire. Deferred tax assets related to federal and state NOL carryforwards which were generated in the US of $69 million and $185 million will expire, if not utilized, in 2031 to 2038 and in 2027 to 2038, respectively. Interest limitation carryforwards in the US do not expire. Deferred tax assets related to tax losses and interest limitation carryforwards in the UK of $35 million and $50 million will not expire. Following a change in tax law in the 2021 period, deferred tax assets related to tax losses generated post 2013 in the Netherlands of $4 million will not expire. Deferred tax assets related to tax losses in Hong Kong of $10 million will not expire.
Deferred tax assets are reduced by a valuation allowance if, based on the weight of available positive and negative evidence, it is more likely than not that some portion of or all the deferred tax assets will not be realized. The Company has concluded that it is not more likely than not that the majority of the deferred tax assets can be realized and therefore a valuation allowance has been assigned to these deferred tax assets. If the Company is subsequently able to utilize all or a portion of the deferred tax assets for which a valuation allowance has been established, then it may be required to recognize these deferred tax assets through the reduction of the valuation allowance which could result in a material benefit to the results of operations in the period in which the benefit is determined.
During the fiscal year ended January 2, 2022, the valuation allowance for deferred tax assets increased by $43 million. This increase mainly relates to incremental valuation allowances recorded against deferred tax assets in the UK, US, Netherlands and Hong Kong arising in the period. The components of the increase in valuation allowance are $41 million as a result of current year activity, $17 million as a result of changes in tax rates in foreign jurisdictions, $16 million relating to the write-off of existing deferred tax assets, and $1 million as a result of the foreign exchange translation impact.
As of January 2, 2022, the Company had $104 million (January 3, 2021: $59 million), $54 million (January 3, 2021: $62 million), $4 million (January 3, 2021: $3 million), and $8 million (January 3, 2021: $6 million) in valuation allowances against the net UK, US, Dutch, and Hong Kong deferred tax assets, respectively.
A portion of the Company's US deferred tax assets relates to net operating losses, the use of which may not be available as a result of limitations under Section 382 of the US tax code. With respect to the US net operating losses, it is not practical to determine if such losses would be utilized based on Management's future projected taxable income.
The deferred tax liability for the fiscal year ended January 3, 2021 relating to the investment in partnership was a result of Soho House US Corporation's 99.66% ownership of Soho House LLC, which was treated as a partnership for US tax purposes and which contained the majority of the Company's US operations. As of January 2, 2022, Soho House US Corporation owns 100% of Soho House LLC and, therefore, deferred taxes are no longer measured on the investment in the partnership. Instead, deferred taxes are measured on the inside basis of assets and liabilities within Soho House LLC.
As of January 2, 2022, the Company had no undistributed earnings on which to provide tax. In the event the Company's subsidiaries become profitable, any distributions will not be taxable due to the UK dividends received exemption regime.
Impact of Global Intangible Low Taxed Income Provisions (United States)
Due to the Reorganization Transactions described in Note 1, Nature of the Business, the Company is now subject to the US Global Intangible Low Taxed Income (GILTI) provisions which require US groups to include in taxable income certain earnings of their foreign controlled corporations. This provision did not impact the Company in the current year since these foreign controlled corporations generated an overall loss which has no impact on US taxable income. We have elected to treat any potential GILTI inclusions under the period cost.
Uncertain Tax Positions
The Company recognizes tax liabilities when, despite its belief that its tax return positions are supportable, management believes that certain positions may not be fully sustained upon review by tax authorities. Each period the Company assesses uncertain tax positions for recognition, measurement and effective settlement. Benefits from uncertain tax positions are measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon settlement - the more likely than not recognition threshold. Where the Company has determined that its tax return filing position does not satisfy the more-likely-than-not recognition threshold, the Company has recorded $16 million of tax benefits.
The ongoing assessments of the more-likely-than-not outcomes of uncertain tax positions require judgment and can increase or decrease the Company's effective tax rate, as well as impact its operating results. The specific timing of when the resolution of each tax position will be reached is uncertain. As of January 2, 2022, the Company believes it is reasonably possible that the uncertain tax benefits recorded as of January 2, 2022 will be reduced by $2 million as a result of expiry of the relevant statute of limitation in the UK.
In July 2021, the Company carried out a legal entity restructuring which resulted in the formation of Membership Collective Group Inc., a US domiciled corporation, as the parent entity of the Company. Prior to July 2021, the parent entity of the Company was a UK domiciled entity.
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
During the fiscal years ended January 2, 2022, January 3, 2021, and December 29, 2019, the Company did not recognize any interest and penalties associated with its unrecognized tax benefits in its consolidated statements of operations. As of January 2, 2022, if recognized, $15 million of its unrecognized tax benefits, including interest and penalties, would have no impact on the Company’s effective tax rate as a full valuation allowance would be applied.
In the UK, US and Greece, the earliest tax years that remain subject to examination by the tax authorities are 2019, 2016, and 2017, respectively. To the extent US tax attributes generated in closed years are carried forward into years that are open to examination, they may be subject to adjustment in audit. 21. Segments
The Company’s core operations comprise of Houses and restaurants across a number of territories, which are managed on a geographical basis. There is a segment managing director for each of the UK, North America, and Europe and Rest of the World (“RoW”) who is responsible for Houses, hotels and restaurants in that region. Each operating segment manager reports directly to the Company’s Chief Operating Decision Maker (“CODM”), the Chief Executive Officer, Chief Financial Officer, Chief Operating Officer, and President combined. In addition to Houses and restaurants, the Company offers other products and services, such as retail, home & beauty products and services, which comprise its Retail operating segment; access to Soho Works collaboration spaces across the UK and North America, which comprise its Soho Works operating segment; and memberships for people who live in cities where physical Houses do not exist, which comprise its Cities Without Houses operating segment. The Retail, Soho Works, and Cities Without Houses operating segments also have segment managers which report directly to the CODM and are managed separately from the Houses and hotels in each region.
US GAAP establishes the standards for reporting information about segments in financial statements. In applying the criteria set forth in the accounting standards, we realigned our reportable segments for the fiscal year ended January 2, 2022. As a result of this realignment, we now have the following three reportable segments: • UK, • North America, and • Europe and RoW.
The manner in which the CODM assesses information for decision-making purposes changed during the fourth quarter of Fiscal 2021. Soho House Design, which was previously a separate reportable segment, is no longer a separate operating segment or reportable segment since the CODM does not review discrete financial information for the business. In addition, Soho Restaurants, which was previously not a separate operating or reportable segment, became a separate operating segment since the CODM reviews discrete financial information for the business. The Company restated segment information for the historical periods presented herein to conform to the current presentation. This change in segment presentation does not affect the Company's consolidated statements of operations, balance sheets or statements of cash flows.
The Company analyzed the results of the Retail, Soho Works, Soho Restaurants, and Cities Without Houses operating segments and concluded that they did not warrant separate presentation as reportable segments as they do not provide additional useful information to the readers of the financial statements. Therefore, these segments are included as part of an “All Other” category.
Intercompany revenues and costs among the reportable segments are not material and accounted for as if the sales were to third parties because these items are based on negotiated fees between the segments involved. All intercompany transactions and balances are eliminated in consolidation. Intercompany revenues and costs between entities within a reportable segment are eliminated to arrive at segment totals. Segment revenue includes revenue of certain equity method investments, which are considered standalone operating segments, which are therefore not included in revenues as part of these consolidated financial statements. Eliminations between segments are separately presented. Corporate results include amounts related to Corporate functions such as administrative costs and professional fees. Income tax expense is managed by Corporate on a consolidated basis and is not allocated to the reportable segments.
The Company manages and assesses the performance of the reportable segments by adjusted EBITDA, which is defined as net income (loss) before depreciation and amortization, interest expense, net, provision (benefit) for income taxes, adjusted to take account of the impact of certain non-cash and other items that the Company does not consider in its evaluation of ongoing operating performance. These other items include, but are not limited to, loss (gain) on sale of property and other, net, share of loss (profit) of equity method investments, foreign exchange, pre-opening expenses, non-cash rent, deferred registration fees, net, share of equity method investments adjusted EBITDA, share-based compensation expense and certain other expenses.
The following tables present disaggregated revenue for the fiscal years ended January 2, 2022, January 3, 2021, and December 29, 2019 and the key financial metrics reviewed by the CODM for the Company’s reportable segments:
The following tables present the reconciliation of reportable segment adjusted EBITDA to total consolidated segment revenue and the reconciliation of net loss to adjusted EBITDA:
(1) Includes the effect of a prior-period error correction, as discussed in Note 2, Summary of Significant Accounting Policies – Basis of Presentation.
(1) The entire balance of these costs is related to pre-opening activities for our Houses in each of the periods presented. (2) Represents other items included in operating expenses, which are outside the normal scope of the Company’s ordinary activities or non-cash, including expenses incurred in respect of membership credits of $8 million and $12 million for the fiscal years ended January 2, 2022 and January 3, 2021, respectively. Other expenses, net also include IPO-related costs of $14 million and corporate financing and restructuring costs of $2 million incurred during the fiscal year ended January 2, 2022. For the fiscal year ended January 3, 2021, other expenses, net include COVID-19 related charges of $5 million, abandoned project costs of $7 million, corporate restructuring costs of $6 million, and the Soho Restaurants guarantee provision of $5 million (refer to Note 4, Consolidated Variable Interest Entities).
The following table presents long-lived asset information (which includes property and equipment, net, operating lease right-of-use assets and equity method investments) by geographic area as of January 2, 2022 and January 3, 2021. Asset information by segment is not reported internally or otherwise regularly reviewed by the CODM.
22. Related Party Transactions
In 2017, Soho Works Limited entered into a term loan facility agreement with two individuals who were the holders of the Company’s redeemable preferred shares until the redemption of such shares during the fiscal year ended January 2, 2022. For additional information, refer to Note 12, Debt – Related Party Loans.
In 2013, 2016, 2018, and 2019, the Company entered into certain loans with its existing shareholders, affiliates of The Yucaipa Companies, LLC, Richard Caring and Nick Jones. These loans have been repaid or converted into ordinary shares of SHHL as of January 3, 2021. For additional information, refer to Note 12, Debt – Related Party Loans.
In June 2019, Soho House Limited made an interest free loan of less than $1 million to Nick Jones. The loan was due on demand and was settled in full on April 15, 2021.
The amounts owed by (to) equity method investees due within one year are as follows:
Amounts owed by equity method investees due within one year are included in prepaid expenses and other current assets on the consolidated balance sheets. Amounts owed to equity method investees due within one year are included in other current liabilities on the consolidated balance sheets.
In 2016, Soho Works Limited, a consolidated VIE, entered into an agreement to lease a property under construction by the landlord with Store Holding Group Ltd, a wholly-owned subsidiary of the noncontrolling interest holders of Soho Works Limited. The handover of six floors of the leased property occurred on a floor-by-floor basis upon substantial completion of landlord improvements, resulting in multiple lease commencement dates in 2019. Lease commencement for the remaining four floors occurred during 2020 upon substantial completion of landlord improvements. This lease runs for a term of 19 years until July 25, 2039. The operating lease asset and liability associated with this lease were $97 million and $117 million as of January 2, 2022, respectively, and $100 million and $120 million as of January 3, 2021, respectively. Rent expense associated with this lease totaled $11 million and $9 million during the fiscal years ended January 2, 2022 and January 3, 2021, respectively.
The Company is party to a property lease arrangement with The Yucaipa Companies LLC. This lease runs for a term of 20 years until December 31, 2038. The operating lease asset and liability associated with this lease were $11 million and $17 million as of January 2, 2022, respectively, and $12 million and $17 million as of January 3, 2021, respectively. Rent expense associated with this lease totaled $3 million, $3 million, and $2 million for the fiscal years ended January 2, 2022, January 3, 2021, and December 29, 2019 respectively.
Through Soho-Ludlow Tenant LLC, the Company is a party to a property lease agreement dated May 3, 2019 for 137 Ludlow Street, New York with Ludlow 137 Holdings LLC, an affiliate of The Yucaipa Companies LLC. This lease runs for a term of 22 years until April 20, 2041, with options to extend for three additional five-year terms. The operating lease right-of-use asset and liability associated with this lease were $9 million, $15 million, respectively, as of January 2, 2022 and $9 million and $15 million, respectively, as of January 3, 2021. The rent expense associated with this lease was $1 million, $10 million, and $11 million for the fiscal years ended January 2, 2022 , January 3, 2021, and December 29, 2019, respectively.
The Company leases the Ludlow property from 139 Ludlow Acquisition LLC, an equity method investee. This is a 25-year lease that commenced May 1, 2016. The operating lease right-of-use asset and liability associated with this lease were $30 million and $33 million, respectively, as of January 2, 2022 and $31 million and $34 million, respectively, as of January 3, 2021. The rent expense associated with this lease was $4 million, $4 million, and $4 million for the fiscal years ended January 2, 2022, January 3, 2021, and December 29, 2019, respectively.
The Company leases the Tel Aviv House from an affiliate of Raycliff Capital, LLC which held a portion of the SHHL redeemable C ordinary shares prior to the IPO and continues to hold Class A common stock of MCG. This lease commenced on June 1, 2021. This lease runs for a term of 19 years until December 15, 2039. The operating lease right-of-use asset and liability associated with this lease were $23 million and $22 million, respectively, as of January 2, 2022. The rent expense associated with this lease was $2 million for the fiscal year ended January 2, 2022.
Ned-Soho House, LLP received management fees, development fees and cost reimbursements from The Ned totaling $1 million, $2 million, and $4 million during the fiscal years ended January 2, 2022, January 3, 2021, and December 29, 2019, respectively.
The Company recognized income from the sale of products and Soho House Design services to The Ned of less than $1 million in each case during the fiscal years ended January 2, 2022, January 3, 2021, and December 29, 2019, respectively. As of January 2, 2022 and January 3, 2021, an amount of $1 million and $1 million, respectively, was due from The Ned to the Company related to these products and services.
Revenues from Soho House Design services to various joint ventures of the Company totaled $7 million, $7 million, and $11 million during the fiscal years ended January 2, 2022, January 3, 2021, and December 29, 2019, respectively. In addition, revenue from Soho House Design services to owners of the Company totaled $1 million, $2 million, and less than $1 million during the fiscal years ended January 2, 2022, January 3, 2021, and December 29, 2019, respectively. As of January 2, 2022 and January 3, 2021, an amount of zero million and $2 million, respectively, was due from owners of the Company.
Revenues from Soho House Design services to Soho Restaurants Limited (previously known as Quentin Limited) totaled less than $1 million and $2 million during the fiscal years ended January 3, 2021 and December 29, 2019, respectively.
Rental income from owners of the Company was zero in all three fiscal years ended January 2, 2022, January 3, 2021, and December 29, 2019. As of January 2, 2022 and January 3, 2021, less than $1 million in each case was due from owners of the Company in relation to these rental arrangements.
Prior to 2018, the Company entered into the Soho Restaurants Limited MSA in relation to certain centralized services being provided by the Company. In addition, the Company entered into the Quentin Partners MSA following the sale of its 50% interest in Soho Restaurants Limited during the fiscal year ended December 30, 2018. As part of the reorganization of Soho Restaurants Limited in August 2020, various notes payable and receivable held by Soho Restaurants Limited were acquired, settled, or, in some cases, forgiven. A total of 1 million, less than $1 million, and $1 million has been recharged to Soho Restaurants Limited and Quentin Partners under these agreements during the fiscal years ended January 2, 2022, January 3, 2021, and December 29, 2019, respectively. During the fiscal year ended December 29, 2019, the Company determined that the full amount of the Soho Restaurants Loan Notes and other balances due from Soho Restaurants Limited were no longer recoverable; as a result, these amounts have been written off, and the Company recognized a charge of $10 million, which is included in other in the consolidated statements of operations.
In return for arranging, and providing financial and transaction advisory services in connection with, the issuance of the Senior Secured Notes and the Senior Preference Shares as described in Note 12, Debt, and Note 15, SHHL Redeemable Preferred Shares, respectively, an affiliate of Yucaipa Companies LLC received a fee in an aggregate amount of $10 million pursuant to a fee letter arrangement with the Company dated March 23, 2021.
In return for its role as sponsor in connection with our IPO, an affiliate of Yucaipa Companies LLC received a fee of $9 million pursuant to a fee letter arrangement with the Company dated July 19, 2021. The fee, which has been paid in full, has been recognized as a reduction of additional paid in capital. 23. Subsequent Events
Shares Issued During January and February 2022, the Company issued a total of 506,990 shares of Class A common stock as a result of RSU awards vesting.
Amendment Letter Agreement to the Existing Revolving Credit Facility On February 11, 2022, Soho House Bond Limited, a wholly-owned subsidiary of the Company entered into an Amendment Letter Agreement (the “Amendment Letter”) that amends the existing Revolving Credit Facility, dated December 5, 2019, among HSBC UK Bank PLC and SHG Acquisition (UK) Limited and Soho House U.S. Corp., two of the Company’s wholly-owned indirect subsidiaries, as borrowers. The Amendment Letter amends the Revolving Credit Facility to extend the Termination Date, as defined therein, from January 25, 2023 to January 25, 2024.
Soho Works Limited Loan In 2017, Soho Works Limited ("SWL") entered into a term loan facility agreement for a £40 million term loan facility. The SWL loan bears interest at 7% and matures on September 29, 2022. On March 11, 2022 this loan was extended and the maturity date is now September 29, 2023.
Goldman Sachs Senior Secured Notes On March 9, 2022, Soho House Bond Limited, a wholly-owned subsidiary of the Company, exercised its option under the Goldman Sachs Senior Secured Note Purchase Agreement to issue $100 million of additional notes. The net proceeds, to be drawn down, will be used for general corporate purposes. Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure. None. Item 9A. Controls and Procedures. Evaluation of Disclosure Controls and Procedures Management concluded as of January 2, 2022 that our disclosure controls and procedures were not effective at the reasonable assurance level, due to material weaknesses in our internal control over financial reporting, to provide reasonable assurance that information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in SEC rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. Based on management’s assessment of the effectiveness of our internal controls over financial reporting, management concluded that our internal controls over financial reporting were not effective as of January 2, 2022, due to insufficiently qualified accounting and other finance personnel with an appropriate level of U.S. GAAP knowledge and experience. Management believes that our lack of experience with U.S. GAAP and the fact that policies and procedures with respect to the review, supervision and monitoring of our accounting and reporting functions were either not designed and in place or not operating effectively constituted material weaknesses in our internal control over financial reporting. Until such time, if ever, that we remediate the material weaknesses in our internal control over financial reporting we expect that the material weaknesses in our disclosure controls and procedures will continue. Changes in Internal Control over Financial Reporting There were no changes in our internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) during fiscal 2021 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. Limitations on the Effectiveness of Disclosure Controls and Procedures In designing and evaluating our disclosure controls and procedures and internal control over financial reporting, our management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable, not absolute, assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures and internal control over financial reporting must reflect the fact that there are resource constraints and our management is required to apply judgment in evaluating the benefits of possible controls and procedures relative to their costs. The design of any disclosure controls and procedures and internal control over financial reporting also are based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Item 9B. Other Information. Not applicable Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections. None. PART III Item 10. Directors, Executive Officers and Corporate Governance. The information required by this Item 10 is incorporated by reference to the information that will be contained in our definitive proxy statement to be filed with the SEC with respect to our 2022 Annual Meeting of Stockholders, which we intend to file no later than 120 days after the end of our fiscal year ended January 2, 2022. Item 11. Executive Compensation. The information required by this Item 11 is incorporated by reference to the information that will be contained in our definitive proxy statement to be filed with the SEC with respect to our 2022 Annual Meeting of Stockholders, which we intend to file no later than 120 days after the end of our fiscal year ended January 2, 2022. Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. The information required by this Item 12 is incorporated by reference to the information that will be contained in our definitive proxy statement to be filed with the SEC with respect to our 2022 Annual Meeting of Stockholders, which we intend to file no later than 120 days after the end of our fiscal year ended January 2, 2022. Item 13. Certain Relationships and Related Transactions, and Director Independence. The information required by this Item 13 is incorporated by reference to the information that will be contained in our definitive proxy statement to be filed with the SEC with respect to our 2022 Annual Meeting of Stockholders, which we intend to file no later than 120 days after the end of our fiscal year ended January 2, 2022. Item 14. Principal Accounting Fees and Services. The information required by this Item 14 is incorporated by reference to the information that will be contained in our definitive proxy statement to be filed with the SEC with respect to our 2022 Annual Meeting of Stockholders, which we intend to file no later than 120 days after the end of our fiscal year ended January 2, 2022.
PART IV Item 15. Exhibits, Financial Statement Schedules. (a) The following documents are filed as a part of the report: (1) Financial statements Consolidated financial statements filed as part of this report are listed under Item 8. “Financial Statements and Supplementary Data.” (2) Financial Statement Schedules No schedules are required because either the required information is not present or is not present in amounts sufficient to require submission of the schedule, or because the information required is included in the consolidated financial statements or the notes thereto. (3) Exhibits Index The exhibits listed on the accompanying Exhibit Index are filed or incorporated by reference as part of this Annual Report on Form 10-K and such Exhibit Index is incorporated herein by reference.
Exhibit Index
* Filed herewith. + Indicates management contract or compensatory plan. Item 16. Form 10-K Summary None.
SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.
POWER OF ATTORNEY Each person whose signature appears below constitutes and appoints Nick Jones and Humera Afzal, and each of them, his or her true and lawful agent, proxy and attorney-in-fact, with full power of substitution and resubstitution, for him or her and in his or her name, place and stead, in any and all capacities, to file with the Securities and Exchange Commission this Form 10-K and any and all amendments and exhibits thereto, and all documents in connection therewith, granting unto each such attorney-in-fact and agent full power and authority to do and perform each and every act and thing necessary or appropriate to be done, as fully for all intents and purposes as he or she might or could do in person, hereby approving, ratifying and confirming all that such agent, proxy and attorney-in-fact or any of his or her substitutes may lawfully do or cause to be done by virtue hereof. Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, this Report has been signed below by the following persons on behalf of the Registrant in the capacities and on the dates indicated.
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Redeemable Preferred Shares |
12 Months Ended |
|---|---|
Jan. 02, 2022 | |
| Stockholders' Equity Note [Abstract] | |
| Redeemable Preferred Shares | Redeemable Preferred Shares
In May 2016, the Company issued 10,000,000, 7% SHHL redeemable preferred shares totaling £10 million ($15 million) to unrelated parties. These shares were redeemable by the holders upon an exit, such as an IPO, or sale of the Company and the cumulative dividends are only paid on redemption. As of January 3, 2021, redemption of the preferred shares was not probable. During the second quarter of Fiscal 2021, the Company concluded that the shares were probable of becoming redeemable and, therefore, accreted the shares to their redemption value. The accretion of $5 million is reflected as a reduction in additional paid-in capital on the consolidated statements of changes in redeemable shares and shareholders’ equity (deficit). In addition, the Company remeasured the SHHL redeemable preferred shares and recognized a foreign currency translation gain of $1 million for the fiscal year ended January 2, 2022, which is reflected within accumulated deficit on the consolidated statements of changes in redeemable shares and shareholders’ equity (deficit). The Company redeemed these preferred shares for cash totaling $20 million in July 2021.
On March 31, 2021, the Company issued 12,970,766 senior convertible preference shares (the “Senior Preference Shares”) in an aggregate liquidation preference of $175 million, or approximately $13.49 per Senior Preference Share (the “Issuance Price”), to certain funds managed, sponsored or advised by Goldman Sachs & Co. LLC or its affiliates (the “Preference Share Investors”). The Company received net proceeds of $162 million and incurred transaction costs of $13 million related to the Senior Preference Shares. The Senior Preference Shares accrue a non-cash dividend of 8% per annum on the investment amount of the Senior Preference Shares plus all previously compounded non-cash dividends. During the fiscal year ended January 2, 2022, the Company recognized non-cash preferred dividends of $4 million as an adjustment to the carrying value of the Senior Preference Shares, with a corresponding reduction in additional paid-in capital on the consolidated statements of changes in redeemable shares and shareholders’ equity (deficit). In addition, the Company recognized a deemed dividend of $51 million in connection with the conversion of the Senior Preference Shares into Class A common stock, because the conversion was effected at a discount to the public offering price. This deemed dividend is reflected as a reduction in additional paid-in capital on the consolidated statements of changes in redeemable preferred shares and shareholders' equity (deficit).
On July 19, 2021, all of the outstanding Senior Preference Shares were converted into an aggregate of 15,526,619 shares of Class A common stock of MCG immediately upon the closing of the IPO (as described in Note 1, Nature of the Business). |
SHHL C Ordinary Shares |
12 Months Ended |
|---|---|
Jan. 02, 2022 | |
| Temporary Equity Disclosure [Abstract] | |
| SHHL C Ordinary Shares | 16. SHHL C Ordinary Shares
On August 23, 2019, the Company issued 4,276,347 SHHL redeemable C ordinary shares to an unrelated third party for a total subscription price of $45 million. On the same date, the new investor purchased 475,150 SHHL A ordinary shares directly from Mr. Nick Jones for $5 million; these shares were immediately converted into an equal number of SHHL redeemable C ordinary shares. On November 4, 2019, the Company issued an additional 2,181,507 shares to the same investor for $20 million, resulting in a total of 6,933,004 SHHL redeemable C ordinary shares issued and outstanding as of December 29, 2019. The Company received net proceeds of $63 million and incurred $5 million of share issuance costs in connection with these transactions.
On May 19, 2020, the Company issued an additional 9,502,993 SHHL redeemable C ordinary shares to a different unrelated third party for a total subscription price of $100 million, net of discount of $6 million. The Company received net proceeds of $94 million and incurred $1 million of share issuance costs in connection with this issuance. As a result, the Company had 16,435,997 SHHL redeemable C ordinary shares issued and outstanding as of January 3, 2021. The Company recorded the SHHL redeemable C ordinary shares as mezzanine equity as a result of the redemption provision described below.
Upon meeting certain conditions, the holders of the SHHL redeemable C ordinary shares described above had the option to redeem all of the shares between October 1, 2023 and March 31, 2024 with respect to the shares issued in August 2019 or between August 23, 2023 and February 23, 2024 with respect to the shares issued in May 2020, provided that the Company had not completed a public listing of its shares prior to the beginning of the respective redemption period. The redemption amount would be determined using a 5% stated rate of return on the holders’ aggregate subscription price, calculated for the period between August 23, 2019 (or May 19, 2020 for the subsequent issuance) and the redemption date. As of January 3, 2021, redemption of the SHHL redeemable C ordinary shares was not probable and, therefore, the Company recorded the shares at their original issuance price and has not accreted the shares to their redemption value.
An investor option was provided in conjunction with the SHHL redeemable C ordinary shares issued on May 19, 2020. In March 2021, the investor option was exercised for the full $50 million, net of a discount of $3 million, and the Company issued an additional 4,751,497 SHHL redeemable C ordinary shares. The Company received net proceeds of $47 million and did not incur any material share issuance costs in connection with this issuance. As a result, the Company had 21,187,494 SHHL redeemable C ordinary shares issued and outstanding immediately prior to the IPO. Redemption of these SHHL redeemable C ordinary shares was not probable as of any period preceding the IPO.
On December 8, 2020, Mr. Nick Jones sold certain of his SHHL A ordinary shares to an unrelated third party and as a condition of the transaction, the A ordinary shares were converted into 1,710,546 SHHL C ordinary shares. Unlike the previously issued SHHL redeemable C ordinary shares described above, the investor does not have the right to redeem these converted SHHL C ordinary shares. Therefore, 1,710,546 of the total 18,146,543 SHHL C ordinary shares outstanding as of January 3, 2021 were classified as permanent equity instead of mezzanine equity.
On July 19, 2021, all of the outstanding SHHL C ordinary shares were exchanged into an aggregate of 6,592,023 shares of Class A common stock and 10,871,215 shares of Class B common stock of MCG in connection with the Reorganization Transactions (as described in Note 1, Nature of the Business). |
Loss Per Share and Shareholders' Equity (Deficit) |
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| Loss Per Share and Shareholders' Equity (Deficit) | 17. Loss Per Share and Shareholders’ Equity (Deficit)
Prior to the IPO, SHHL had five classes of ordinary shares: A ordinary shares , B ordinary shares, C ordinary shares (a portion of which had certain redemption rights), C2 ordinary shares and D ordinary shares.
Holders of SHHL A ordinary shares (par value of £1) were entitled to one vote for each A ordinary share held. Each A ordinary shareholder was entitled pari passu to dividend payments or any other distributions.
In January 2012, the Company issued 4,469,417 of SHHL B ordinary shares with par value of £0.0001, which had no voting rights. These shares vested annually in equal installments over a period of five years, and all shares became vested on January 12, 2017. SHHL B ordinary shareholders were entitled to income rights in proportion to the SHHL A ordinary shareholders based on the number of shares held only after £167 million ($228 million, translated using the exchange rate on January 3, 2021) had been returned in aggregate to the holders of SHHL A ordinary shares, the SHHL C ordinary shares and the SHHL C2 ordinary shares.
As described in Note 16, SHHL C Ordinary Shares, in August and November 2019, the Company issued 6,933,004 SHHL redeemable C ordinary shares (par value of £1) to the same unrelated third party in two separate transactions. The Company issued an additional 9,502,993 SHHL redeemable C ordinary shares (par value of £1) to a separate unrelated third party in May 2020. The holders of SHHL redeemable C ordinary shares were entitled to one vote for each share held. In addition, so long as certain conditions were met, each of the investors was entitled to appoint one non-executive director and one non-voting observer director to the Company’s board and also had certain veto rights with respect to a sale of the Company prior to August 23, 2024. All SHHL redeemable C ordinary shares were entitled to dividend payments or any other distributions on a pari passu basis with other classes of SHHL ordinary shares. Upon a public listing of the Company’s shares, the SHHL redeemable C ordinary shares would convert into the same class of shares as the SHHL A ordinary shares on a 1:1 basis, subject to certain anti-dilution protection, whereby the holders of the SHHL redeemable C ordinary shares would receive additional shares if the value of the as-converted SHHL redeemable C ordinary shares was less than the investors’ initial subscription price.
Separate from the SHHL redeemable C ordinary shares discussed above, in December 2020, the Company converted 1,710,546 SHHL A ordinary shares into 1,710,546 SHHL C ordinary shares which were not redeemable by the Company. These SHHL C ordinary shares did not have any voting or veto rights. The shares were entitled to dividend payments or any other distributions on a pari passu basis with other classes of SHHL ordinary shares. Upon a public listing of the Company’s shares, the SHHL C ordinary shares would convert into the same class of shares as the SHHL A ordinary shares on a 1:1 basis, subject to certain anti-dilution protection, whereby the holders of the SHHL C ordinary shares would receive additional shares if the value of the as-converted SHHL C ordinary shares was less than the investors’ initial purchase price.
In December 2019, the Company issued 3,326,048 of non-voting SHHL C2 ordinary shares with par value of £1 to an unrelated third party. The Company incurred $1 million of share issuance costs in connection with this transaction. The SHHL C2 ordinary shares were entitled to dividend payments or any other distributions on a pari passu basis with other classes of SHHL ordinary shares.
In August 2020, the Company established the 2020 Plan, under which employees received SHHL SARs and SHHL Growth Shares which would be settled in SHHL D ordinary shares (par value of £0.0001). As of January 3, 2021, there are 2,850,897 SHHL D ordinary shares issued and outstanding. The SHHL D ordinary shares did not have any voting rights. SHHL D ordinary shareholders were entitled to income and distribution rights in proportion to the SHHL A ordinary, B ordinary, C ordinary and C2 ordinary shareholders based on the number of shares held only after $1,800 million had been returned to the holders of all other classes of SHHL ordinary shares.
Immediately prior to the closing of the IPO, affiliates of The Yucaipa Companies, LLC, and Messrs. Ron Burkle, Nick Jones, and Richard Caring exchanged their SHHL A ordinary shares, SHHL B ordinary shares, SHHL C ordinary shares and SHHL D ordinary shares for 141,500,385 shares of Class B common stock of MCG having an equivalent value, while the other ordinary shareholders of SHHL exchanged their equity interests for 14,935,193 shares of Class A common stock of MCG having an equivalent value.
The table below presents changes in each class of the Company’s redeemable preferred shares, ordinary shares and common stock, as applicable:
Loss Per Share
The table below illustrates the reconciliation of the loss and the number of shares used in the calculations of basic and diluted loss per share:
The net loss attributable to the Company in calculating basic and diluted loss per share for all periods presented is adjusted for cumulative undeclared dividends on the May 2016 preferred shares. In addition, the net loss attributable to the Company in calculating basic and diluted loss per share for the fiscal year ended January 2, 2022 is adjusted for non-cash dividends on the Senior Preference Shares and the impact of the deemed dividend to the holders of Senior Preference Shares upon their conversion into MCG Class A common stock.
The loss per share calculations for the fiscal years ended January 2, 2022 and January 3, 2021 exclude additional shares that would be issuable to the holders of SHHL redeemable C ordinary shares in the event of a public listing that resulted in the value of the SHHL redeemable C ordinary shares being less than the investor’s initial subscription price, because the impact of including such additional shares would be anti-dilutive. In addition, the loss per share calculations for the fiscal years ended January 2, 2022 and January 3, 2021 exclude the impact of unvested Growth Shares (which were exchanged into restricted stock awards in connection with the IPO) because the inclusion of such shares in diluted loss per share would be anti-dilutive. |
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Commitments and Contingencies |
12 Months Ended |
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Jan. 02, 2022 | |
| Commitments and Contingencies Disclosure [Abstract] | |
| Commitments and Contingencies | 18. Commitments and Contingencies
Litigation Matters
The Company is not a party to any litigation other than litigation in the ordinary course of business. The Company’s management and legal counsel do not expect that the ultimate outcome of any of its currently ongoing legal proceedings, individually or collectively, will have a material adverse effect on the Company’s consolidated financial statements.
Commitments and Contingencies
In connection with the closure of Houses across the world beginning on March 14, 2020, the Company in its sole discretion issued membership credits to Soho House members to be redeemed for certain Soho House products and services. Membership credits were issued by the Company as a one-time goodwill gesture deemed to be a marketing offer to Soho House members, and were initially set to expire on December 31, 2020. The liability associated with the membership credits is derecognized based on the usage of credits and the cost of the inventory or services to fulfill the Company’s obligation to its Soho House members; this liability is classified within other current liabilities on the Company’s consolidated balance sheet. In December 2020, the Company made the decision in its sole discretion to extend the expiration date to June 30, 2021 as a result of the continuing impact of the COVID-19 pandemic, resulting in a significant number of the Houses remaining closed or operating at a reduced capacity for longer periods than the Company originally expected. In March 2021, the Company decided in its sole discretion to further extend the expiration date to September 30, 2021. The Company simultaneously adjusted its obligation based on its best estimate of the cost to be incurred. The redemption rate used to estimate the obligation associated with the membership credits was based on the Company’s cumulative experience to-date. Accordingly, an estimated liability of $12 million was accrued as of January 3, 2021. There were associated marketing expenses of $8 million and $12 million during the fiscal years ended January 2, 2022 and January 3, 2021, respectively, which are included within other expense in the consolidated statements of operations. The expense recognized during the fiscal year ended January 2, 2022 is net of $4 million recorded upon expiration of the vast majority of credits on September 30, 2021.
On December 7, 2017, 139 Ludlow Acquisition LLC entered into a loan agreement with Natixis Real Estate Capital LLC. The borrower is a joint venture owned in equal thirds by Soho 139 Holdco, LLC (an entity controlled by the Company) and its two partners. Pursuant to the loan agreement, the lender advanced $33.5 million, the bulk of which proceeds were used to extinguish and refinance the borrower’s previous mortgage loan with Centennial Bank. The loan is secured with a first priority mortgage and security interest on the real property known as 139 Ludlow Street, New York (including an assignment of leases and rents and other customary mortgage documents). The loan is generally “non-recourse”, but subject to standard “carve-outs” for which US AcquireCo, Inc. (a wholly-owned subsidiary of the Company) and its joint venture partners (the “Guarantors”) provided a guarantee of recourse obligations, pursuant to which such Guarantors are jointly and severally obligated to pay (without any cap or limit) the amounts of any actual loss, damage, cost, expense, liability, claim or other obligation incurred by the lender.
In August 2014, the Company entered into a security arrangement with regards to Raycliff Red LLP’s (a VIE’s) £4 million ($7 million) bank loan to redevelop a property into an overflow location for Shoreditch House hotel rooms in the United Kingdom. In May 2016, the VIE extended the existing loan to £10 million ($15 million) to, inter alia, purchase an adjoining property that was redeveloped as an overflow location for Shoreditch House hotel rooms. In May 2017, the VIE extended the existing loan to £20 million ($26 million). In July 2018, the facility was extended by a further £0.4 million ($0.5 million). The Company has provided security in respect of the loan by granting the lender a charge over its membership interest in the VIE. The security will remain in effect until the VIE’s bank loan is repaid in full to the lender. In October 2019, the VIE entered into a term loan facility agreement with a new lender, the proceeds of which were used to repay the previous bank loan. As of January 2, 2022, the outstanding balance of the VIE’s term loan was £21 million ($29 million). The Company has provided security in respect of the term loan by granting the lender a charge over its membership interest in the VIE. The security will remain in effect until the VIE’s term loan is repaid in full to the lender.
In January 2014, the Company committed to invest €10 million ($14 million) in Soho House Barcelona, for the entity to redevelop a property into Soho House Barcelona in Spain. As of January 1, 2017, the Company had advanced €10 million ($10 million) of its commitment, of which €5 million ($5 million) was in cash and €5 million ($5 million) was in the form of a convertible loan (which converted to shares on November 30, 2016). There was no further activity during the fiscal year ended December 30, 2018. The cash loan matured on September 30, 2019 and was converted into shares in December 2019. Following its redevelopment, the Company began operating the property in October 2016 and has agreed to meet certain performance targets in the first five years of operations. If unmet, the Company must cure any performance shortfall for a maximum exposure of €4.4 million ($5 million) in 2019 and adjusted for inflation every year thereafter.
On November 18, 2016, an existing mortgage loan over the Soho House Barcelona property was novated by the VIE to Banca March and extended to a total commitment of €18 million ($19 million). This loan was further extended to a total commitment of €39.5 million ($45 million) on March 21, 2019, and a portion of the proceeds was used to redeem an existing €18 million ($20 million) mezzanine facility from Orca Finance and Invest Ltd to Mirador Barcel S.L. The Banca March loan is secured by way of mortgage over Soho House Barcelona.
In June 2018, the Company issued a Letter of Guarantee, secured by The Hongkong and Shanghai Banking Corporation Limited, Hong Kong, in place of a cash deposit totaling HKD 40.6 million ($5 million) to the landlord of Soho House Hong Kong in connection with the lease of the property. Subject to certain criteria, the bank guarantee reduces annually to HKD 32.4 million ($4 million) on the first anniversary of the Letter of Guarantee and HKD 24.3 million ($3 million) on the second anniversary. In addition, in June 2018, Soho House (Hong Kong) Limited drew down $6.5 million pursuant to a loan agreement with Bright Success Investment Limited dated July 12, 2017 (as amended June 1, 2018 and March 7, 2019). In September 2021, the Company repaid in full amounts outstanding under the Soho House Hong Kong loan. For additional information, refer to Note 12, Debt.
Certain subsidiaries of the Company guarantee the obligations of Soho Restaurants Limited (and its subsidiaries) under eight property leases (the “Soho Restaurants Guarantees”) with respect to any required rental or other payments under these guaranteed leases. The Soho Restaurants Guarantees are historical lease guarantees that have remained in place following the spin out of Soho Restaurants Limited from the Company in December 2017. The lease guarantees are predominantly lease term guarantees. The maximum exposure under these guarantees is $1 million in any given year. While the Company incurred operational expenses supporting Soho Restaurants Limited, prior to its consolidation of this entity, to date the Company has not made any guarantee payments nor has it become obligated to make any payments pursuant to any Soho Restaurants Guarantee.
The Company believes the likelihood of having to perform under the aforementioned operations performance and lease guarantees was remote as of January 2, 2022 and January 3, 2021.
Capital Commitments
As of January 2, 2022, capital expenditure commitments contracted for but not yet incurred totaled less than $1 million and were related primarily to site improvement costs for Soho House West Hollywood Cecconi's. As of January 3, 2021, capital expenditure commitments contracted for but not yet incurred totaled $1 million and were related primarily to Soho House Hong Kong. |
Defined Contribution Plan |
12 Months Ended |
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Jan. 02, 2022 | |
| Retirement Benefits [Abstract] | |
| Defined Contribution Plan | 19. Defined Contribution Plan The Company operates a defined contribution pension plan, an occupational plan to which an individual and their employer make contributions. The assets of the plan are held separately from those of the Company in an independently administered fund. The plan charge amounted to $9 million, $11 million, and $10 million in the fiscal years ended January 2, 2022, January 3, 2021, and December 29, 2019, respectively. There were no outstanding or prepaid contributions at either the beginning or end of the fiscal years presented in these consolidated financial statements. |
Income Taxes |
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| Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income Taxes | 20. Income Taxes
Below are the components of loss before income taxes for the fiscal years ended January 2, 2022, January 3, 2021, and December 29, 2019 under the following tax jurisdictions:
(1) Prior to the Reorganization Transactions, Domestic refers to the UK tax jurisdiction and Foreign refers to all non-UK tax jurisdictions. Following the Reorganization Transactions, Domestic refers to the US tax jurisdiction and Foreign refers to all non-US tax jurisdictions.
The provision for income taxes is as follows:
(1) Prior to the Reorganization Transactions, Domestic refers to the UK tax jurisdiction and Foreign refers to all non-UK tax jurisdictions. Following the Reorganization Transactions, Domestic refers to the US tax jurisdiction and Foreign refers to all non-US tax jurisdictions.
A reconciliation of the US and UK statutory income tax rate to the consolidated effective income tax rate is as follows:
The effective income tax rate for the fiscal years ended January 2, 2022, January 3, 2021, and December 29, 2019 differs from the US and UK statutory rate, as applicable, of 21%, 19%, and 19%, respectively. The difference for the fiscal years ended January 2, 2022 and January 3, 2021 are primarily due to current period losses in certain jurisdictions that require an additional valuation allowance.
Deferred Income Taxes
Deferred tax assets and liabilities consist of the following:
(1) For US tax purposes, the LINE and Saguaro Acquisition transaction was considered an asset acquisition. Refer to Note 3, Acquisitions, for further information on this transaction.
Total net deferred taxes are classified as follows:
As of January 2, 2022, deferred tax assets related to tax losses were $119 million and interest limitation carryforwards were $73 million which can be used to offset future taxable income. This includes $67 million of net operating losses, or "NOLs", and $23 million of interest limitation carryforwards in the US; $35 million tax losses and $50 million interest limitation carryforwards in the UK; $4 million tax losses in the Netherlands; and $10 million tax losses in Hong Kong.
Deferred tax assets related to NOLs generated in the US of $238 million will not expire. Deferred tax assets related to federal and state NOL carryforwards which were generated in the US of $69 million and $185 million will expire, if not utilized, in 2031 to 2038 and in 2027 to 2038, respectively. Interest limitation carryforwards in the US do not expire. Deferred tax assets related to tax losses and interest limitation carryforwards in the UK of $35 million and $50 million will not expire. Following a change in tax law in the 2021 period, deferred tax assets related to tax losses generated post 2013 in the Netherlands of $4 million will not expire. Deferred tax assets related to tax losses in Hong Kong of $10 million will not expire.
Deferred tax assets are reduced by a valuation allowance if, based on the weight of available positive and negative evidence, it is more likely than not that some portion of or all the deferred tax assets will not be realized. The Company has concluded that it is not more likely than not that the majority of the deferred tax assets can be realized and therefore a valuation allowance has been assigned to these deferred tax assets. If the Company is subsequently able to utilize all or a portion of the deferred tax assets for which a valuation allowance has been established, then it may be required to recognize these deferred tax assets through the reduction of the valuation allowance which could result in a material benefit to the results of operations in the period in which the benefit is determined.
During the fiscal year ended January 2, 2022, the valuation allowance for deferred tax assets increased by $43 million. This increase mainly relates to incremental valuation allowances recorded against deferred tax assets in the UK, US, Netherlands and Hong Kong arising in the period. The components of the increase in valuation allowance are $41 million as a result of current year activity, $17 million as a result of changes in tax rates in foreign jurisdictions, $16 million relating to the write-off of existing deferred tax assets, and $1 million as a result of the foreign exchange translation impact.
As of January 2, 2022, the Company had $104 million (January 3, 2021: $59 million), $54 million (January 3, 2021: $62 million), $4 million (January 3, 2021: $3 million), and $8 million (January 3, 2021: $6 million) in valuation allowances against the net UK, US, Dutch, and Hong Kong deferred tax assets, respectively.
A portion of the Company's US deferred tax assets relates to net operating losses, the use of which may not be available as a result of limitations under Section 382 of the US tax code. With respect to the US net operating losses, it is not practical to determine if such losses would be utilized based on Management's future projected taxable income.
The deferred tax liability for the fiscal year ended January 3, 2021 relating to the investment in partnership was a result of Soho House US Corporation's 99.66% ownership of Soho House LLC, which was treated as a partnership for US tax purposes and which contained the majority of the Company's US operations. As of January 2, 2022, Soho House US Corporation owns 100% of Soho House LLC and, therefore, deferred taxes are no longer measured on the investment in the partnership. Instead, deferred taxes are measured on the inside basis of assets and liabilities within Soho House LLC.
As of January 2, 2022, the Company had no undistributed earnings on which to provide tax. In the event the Company's subsidiaries become profitable, any distributions will not be taxable due to the UK dividends received exemption regime.
Impact of Global Intangible Low Taxed Income Provisions (United States)
Due to the Reorganization Transactions described in Note 1, Nature of the Business, the Company is now subject to the US Global Intangible Low Taxed Income (GILTI) provisions which require US groups to include in taxable income certain earnings of their foreign controlled corporations. This provision did not impact the Company in the current year since these foreign controlled corporations generated an overall loss which has no impact on US taxable income. We have elected to treat any potential GILTI inclusions under the period cost.
Uncertain Tax Positions
The Company recognizes tax liabilities when, despite its belief that its tax return positions are supportable, management believes that certain positions may not be fully sustained upon review by tax authorities. Each period the Company assesses uncertain tax positions for recognition, measurement and effective settlement. Benefits from uncertain tax positions are measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon settlement - the more likely than not recognition threshold. Where the Company has determined that its tax return filing position does not satisfy the more-likely-than-not recognition threshold, the Company has recorded $16 million of tax benefits.
The ongoing assessments of the more-likely-than-not outcomes of uncertain tax positions require judgment and can increase or decrease the Company's effective tax rate, as well as impact its operating results. The specific timing of when the resolution of each tax position will be reached is uncertain. As of January 2, 2022, the Company believes it is reasonably possible that the uncertain tax benefits recorded as of January 2, 2022 will be reduced by $2 million as a result of expiry of the relevant statute of limitation in the UK.
In July 2021, the Company carried out a legal entity restructuring which resulted in the formation of Membership Collective Group Inc., a US domiciled corporation, as the parent entity of the Company. Prior to July 2021, the parent entity of the Company was a UK domiciled entity.
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
During the fiscal years ended January 2, 2022, January 3, 2021, and December 29, 2019, the Company did not recognize any interest and penalties associated with its unrecognized tax benefits in its consolidated statements of operations. As of January 2, 2022, if recognized, $15 million of its unrecognized tax benefits, including interest and penalties, would have no impact on the Company’s effective tax rate as a full valuation allowance would be applied.
In the UK, US and Greece, the earliest tax years that remain subject to examination by the tax authorities are 2019, 2016, and 2017, respectively. To the extent US tax attributes generated in closed years are carried forward into years that are open to examination, they may be subject to adjustment in audit. |
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Segments |
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| Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segments | 21. Segments
The Company’s core operations comprise of Houses and restaurants across a number of territories, which are managed on a geographical basis. There is a segment managing director for each of the UK, North America, and Europe and Rest of the World (“RoW”) who is responsible for Houses, hotels and restaurants in that region. Each operating segment manager reports directly to the Company’s Chief Operating Decision Maker (“CODM”), the Chief Executive Officer, Chief Financial Officer, Chief Operating Officer, and President combined. In addition to Houses and restaurants, the Company offers other products and services, such as retail, home & beauty products and services, which comprise its Retail operating segment; access to Soho Works collaboration spaces across the UK and North America, which comprise its Soho Works operating segment; and memberships for people who live in cities where physical Houses do not exist, which comprise its Cities Without Houses operating segment. The Retail, Soho Works, and Cities Without Houses operating segments also have segment managers which report directly to the CODM and are managed separately from the Houses and hotels in each region.
US GAAP establishes the standards for reporting information about segments in financial statements. In applying the criteria set forth in the accounting standards, we realigned our reportable segments for the fiscal year ended January 2, 2022. As a result of this realignment, we now have the following three reportable segments: • UK, • North America, and • Europe and RoW.
The manner in which the CODM assesses information for decision-making purposes changed during the fourth quarter of Fiscal 2021. Soho House Design, which was previously a separate reportable segment, is no longer a separate operating segment or reportable segment since the CODM does not review discrete financial information for the business. In addition, Soho Restaurants, which was previously not a separate operating or reportable segment, became a separate operating segment since the CODM reviews discrete financial information for the business. The Company restated segment information for the historical periods presented herein to conform to the current presentation. This change in segment presentation does not affect the Company's consolidated statements of operations, balance sheets or statements of cash flows.
The Company analyzed the results of the Retail, Soho Works, Soho Restaurants, and Cities Without Houses operating segments and concluded that they did not warrant separate presentation as reportable segments as they do not provide additional useful information to the readers of the financial statements. Therefore, these segments are included as part of an “All Other” category.
Intercompany revenues and costs among the reportable segments are not material and accounted for as if the sales were to third parties because these items are based on negotiated fees between the segments involved. All intercompany transactions and balances are eliminated in consolidation. Intercompany revenues and costs between entities within a reportable segment are eliminated to arrive at segment totals. Segment revenue includes revenue of certain equity method investments, which are considered standalone operating segments, which are therefore not included in revenues as part of these consolidated financial statements. Eliminations between segments are separately presented. Corporate results include amounts related to Corporate functions such as administrative costs and professional fees. Income tax expense is managed by Corporate on a consolidated basis and is not allocated to the reportable segments.
The Company manages and assesses the performance of the reportable segments by adjusted EBITDA, which is defined as net income (loss) before depreciation and amortization, interest expense, net, provision (benefit) for income taxes, adjusted to take account of the impact of certain non-cash and other items that the Company does not consider in its evaluation of ongoing operating performance. These other items include, but are not limited to, loss (gain) on sale of property and other, net, share of loss (profit) of equity method investments, foreign exchange, pre-opening expenses, non-cash rent, deferred registration fees, net, share of equity method investments adjusted EBITDA, share-based compensation expense and certain other expenses.
The following tables present disaggregated revenue for the fiscal years ended January 2, 2022, January 3, 2021, and December 29, 2019 and the key financial metrics reviewed by the CODM for the Company’s reportable segments:
The following tables present the reconciliation of reportable segment adjusted EBITDA to total consolidated segment revenue and the reconciliation of net loss to adjusted EBITDA:
(1) Includes the effect of a prior-period error correction, as discussed in Note 2, Summary of Significant Accounting Policies – Basis of Presentation.
(1) The entire balance of these costs is related to pre-opening activities for our Houses in each of the periods presented. (2) Represents other items included in operating expenses, which are outside the normal scope of the Company’s ordinary activities or non-cash, including expenses incurred in respect of membership credits of $8 million and $12 million for the fiscal years ended January 2, 2022 and January 3, 2021, respectively. Other expenses, net also include IPO-related costs of $14 million and corporate financing and restructuring costs of $2 million incurred during the fiscal year ended January 2, 2022. For the fiscal year ended January 3, 2021, other expenses, net include COVID-19 related charges of $5 million, abandoned project costs of $7 million, corporate restructuring costs of $6 million, and the Soho Restaurants guarantee provision of $5 million (refer to Note 4, Consolidated Variable Interest Entities).
The following table presents long-lived asset information (which includes property and equipment, net, operating lease right-of-use assets and equity method investments) by geographic area as of January 2, 2022 and January 3, 2021. Asset information by segment is not reported internally or otherwise regularly reviewed by the CODM.
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Related Party Transactions |
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| Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Related Party Transactions | 22. Related Party Transactions
In 2017, Soho Works Limited entered into a term loan facility agreement with two individuals who were the holders of the Company’s redeemable preferred shares until the redemption of such shares during the fiscal year ended January 2, 2022. For additional information, refer to Note 12, Debt – Related Party Loans.
In 2013, 2016, 2018, and 2019, the Company entered into certain loans with its existing shareholders, affiliates of The Yucaipa Companies, LLC, Richard Caring and Nick Jones. These loans have been repaid or converted into ordinary shares of SHHL as of January 3, 2021. For additional information, refer to Note 12, Debt – Related Party Loans.
In June 2019, Soho House Limited made an interest free loan of less than $1 million to Nick Jones. The loan was due on demand and was settled in full on April 15, 2021.
The amounts owed by (to) equity method investees due within one year are as follows:
Amounts owed by equity method investees due within one year are included in prepaid expenses and other current assets on the consolidated balance sheets. Amounts owed to equity method investees due within one year are included in other current liabilities on the consolidated balance sheets.
In 2016, Soho Works Limited, a consolidated VIE, entered into an agreement to lease a property under construction by the landlord with Store Holding Group Ltd, a wholly-owned subsidiary of the noncontrolling interest holders of Soho Works Limited. The handover of six floors of the leased property occurred on a floor-by-floor basis upon substantial completion of landlord improvements, resulting in multiple lease commencement dates in 2019. Lease commencement for the remaining four floors occurred during 2020 upon substantial completion of landlord improvements. This lease runs for a term of 19 years until July 25, 2039. The operating lease asset and liability associated with this lease were $97 million and $117 million as of January 2, 2022, respectively, and $100 million and $120 million as of January 3, 2021, respectively. Rent expense associated with this lease totaled $11 million and $9 million during the fiscal years ended January 2, 2022 and January 3, 2021, respectively.
The Company is party to a property lease arrangement with The Yucaipa Companies LLC. This lease runs for a term of 20 years until December 31, 2038. The operating lease asset and liability associated with this lease were $11 million and $17 million as of January 2, 2022, respectively, and $12 million and $17 million as of January 3, 2021, respectively. Rent expense associated with this lease totaled $3 million, $3 million, and $2 million for the fiscal years ended January 2, 2022, January 3, 2021, and December 29, 2019 respectively.
Through Soho-Ludlow Tenant LLC, the Company is a party to a property lease agreement dated May 3, 2019 for 137 Ludlow Street, New York with Ludlow 137 Holdings LLC, an affiliate of The Yucaipa Companies LLC. This lease runs for a term of 22 years until April 20, 2041, with options to extend for three additional five-year terms. The operating lease right-of-use asset and liability associated with this lease were $9 million, $15 million, respectively, as of January 2, 2022 and $9 million and $15 million, respectively, as of January 3, 2021. The rent expense associated with this lease was $1 million, $10 million, and $11 million for the fiscal years ended January 2, 2022 , January 3, 2021, and December 29, 2019, respectively.
The Company leases the Ludlow property from 139 Ludlow Acquisition LLC, an equity method investee. This is a 25-year lease that commenced May 1, 2016. The operating lease right-of-use asset and liability associated with this lease were $30 million and $33 million, respectively, as of January 2, 2022 and $31 million and $34 million, respectively, as of January 3, 2021. The rent expense associated with this lease was $4 million, $4 million, and $4 million for the fiscal years ended January 2, 2022, January 3, 2021, and December 29, 2019, respectively.
The Company leases the Tel Aviv House from an affiliate of Raycliff Capital, LLC which held a portion of the SHHL redeemable C ordinary shares prior to the IPO and continues to hold Class A common stock of MCG. This lease commenced on June 1, 2021. This lease runs for a term of 19 years until December 15, 2039. The operating lease right-of-use asset and liability associated with this lease were $23 million and $22 million, respectively, as of January 2, 2022. The rent expense associated with this lease was $2 million for the fiscal year ended January 2, 2022.
Ned-Soho House, LLP received management fees, development fees and cost reimbursements from The Ned totaling $1 million, $2 million, and $4 million during the fiscal years ended January 2, 2022, January 3, 2021, and December 29, 2019, respectively.
The Company recognized income from the sale of products and Soho House Design services to The Ned of less than $1 million in each case during the fiscal years ended January 2, 2022, January 3, 2021, and December 29, 2019, respectively. As of January 2, 2022 and January 3, 2021, an amount of $1 million and $1 million, respectively, was due from The Ned to the Company related to these products and services.
Revenues from Soho House Design services to various joint ventures of the Company totaled $7 million, $7 million, and $11 million during the fiscal years ended January 2, 2022, January 3, 2021, and December 29, 2019, respectively. In addition, revenue from Soho House Design services to owners of the Company totaled $1 million, $2 million, and less than $1 million during the fiscal years ended January 2, 2022, January 3, 2021, and December 29, 2019, respectively. As of January 2, 2022 and January 3, 2021, an amount of zero million and $2 million, respectively, was due from owners of the Company.
Revenues from Soho House Design services to Soho Restaurants Limited (previously known as Quentin Limited) totaled less than $1 million and $2 million during the fiscal years ended January 3, 2021 and December 29, 2019, respectively.
Rental income from owners of the Company was zero in all three fiscal years ended January 2, 2022, January 3, 2021, and December 29, 2019. As of January 2, 2022 and January 3, 2021, less than $1 million in each case was due from owners of the Company in relation to these rental arrangements.
Prior to 2018, the Company entered into the Soho Restaurants Limited MSA in relation to certain centralized services being provided by the Company. In addition, the Company entered into the Quentin Partners MSA following the sale of its 50% interest in Soho Restaurants Limited during the fiscal year ended December 30, 2018. As part of the reorganization of Soho Restaurants Limited in August 2020, various notes payable and receivable held by Soho Restaurants Limited were acquired, settled, or, in some cases, forgiven. A total of 1 million, less than $1 million, and $1 million has been recharged to Soho Restaurants Limited and Quentin Partners under these agreements during the fiscal years ended January 2, 2022, January 3, 2021, and December 29, 2019, respectively. During the fiscal year ended December 29, 2019, the Company determined that the full amount of the Soho Restaurants Loan Notes and other balances due from Soho Restaurants Limited were no longer recoverable; as a result, these amounts have been written off, and the Company recognized a charge of $10 million, which is included in other in the consolidated statements of operations.
In return for arranging, and providing financial and transaction advisory services in connection with, the issuance of the Senior Secured Notes and the Senior Preference Shares as described in Note 12, Debt, and Note 15, SHHL Redeemable Preferred Shares, respectively, an affiliate of Yucaipa Companies LLC received a fee in an aggregate amount of $10 million pursuant to a fee letter arrangement with the Company dated March 23, 2021.
In return for its role as sponsor in connection with our IPO, an affiliate of Yucaipa Companies LLC received a fee of $9 million pursuant to a fee letter arrangement with the Company dated July 19, 2021. The fee, which has been paid in full, has been recognized as a reduction of additional paid in capital. |
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Subsequent Events |
12 Months Ended |
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Jan. 02, 2022 | |
| Subsequent Events [Abstract] | |
| Subsequent Events | 23. Subsequent Events
Shares Issued During January and February 2022, the Company issued a total of 506,990 shares of Class A common stock as a result of RSU awards vesting.
Amendment Letter Agreement to the Existing Revolving Credit Facility On February 11, 2022, Soho House Bond Limited, a wholly-owned subsidiary of the Company entered into an Amendment Letter Agreement (the “Amendment Letter”) that amends the existing Revolving Credit Facility, dated December 5, 2019, among HSBC UK Bank PLC and SHG Acquisition (UK) Limited and Soho House U.S. Corp., two of the Company’s wholly-owned indirect subsidiaries, as borrowers. The Amendment Letter amends the Revolving Credit Facility to extend the Termination Date, as defined therein, from January 25, 2023 to January 25, 2024.
Soho Works Limited Loan In 2017, Soho Works Limited ("SWL") entered into a term loan facility agreement for a £40 million term loan facility. The SWL loan bears interest at 7% and matures on September 29, 2022. On March 11, 2022 this loan was extended and the maturity date is now September 29, 2023.
Goldman Sachs Senior Secured Notes On March 9, 2022, Soho House Bond Limited, a wholly-owned subsidiary of the Company, exercised its option under the Goldman Sachs Senior Secured Note Purchase Agreement to issue $100 million of additional notes. The net proceeds, to be drawn down, will be used for general corporate purposes. |
Summary of Significant Accounting Policies (Policies) |
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| Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Basis of Presentation | Basis of Presentation
The consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”).The preparation of the financial statements in conformity with US GAAP requires the use of estimates, judgments and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenues and expenses during the periods presented. The Company's significant estimates relate to the valuation of financial instruments, equity method investments, the measurement of goodwill and intangible assets, contingent liabilities, income taxes, leases, long-lived assets and the period over which revenue from one-time member registration fees is recognized. Although the estimates have been prepared using management's best judgment and management believes that the estimates used are reasonable, actual results could differ from those estimates and such differences could be material.
We operate on a fiscal year calendar consisting of a 52-or 53-week period ending on the last Sunday in December or the first Sunday in January of the next calendar year. In a 52-week fiscal year, each quarter contains 13 weeks of operations; in a 53-week fiscal year, each of the first, second and third quarters includes 13 weeks of operations and the fourth quarter includes 14 weeks of operations.
Our 2019 fiscal year ended on December 29, 2019 ("Fiscal 2019"), our 2020 fiscal year ended on January 3, 2021 ("Fiscal 2020"), and our 2021 fiscal year ended on January 2, 2022 ("Fiscal 2021"). Fiscal 2019 was a 52-week year, Fiscal 2020 was a 53-week year, and Fiscal 2021 was a 52-week year.
The consolidated statement of operations and consolidated statement of comprehensive loss for the fiscal year ended January 2, 2022 includes the correction of an error related to the Company’s consolidated financial statements for the fiscal years ended January 3, 2021 and December 29, 2019. The error relates to the correction of a consolidating adjustment for foreign currency transaction gains of $13 million in the fiscal year ended January 3, 2021 and $4 million in the fiscal year ended December 29, 2019. The correction of this error is presented within other in the consolidated statement of operations for the fiscal year ended January 2, 2022 and within foreign currency translation adjustment in the consolidated statement of comprehensive loss for the fiscal year ended January 2, 2022.
Certain prior period amounts have been reclassified to conform to the current period presentation with no impact on previously reported net loss or cash flows, and no material impact on financial position. |
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| Going Concern | Going Concern
The accompanying consolidated financial statements of the Company have been prepared assuming the Company will continue as a going concern. The going concern basis of presentation assumes that we will continue in operation for at least a period of 12 months after the date these financial statements are issued, and contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.
We have experienced net losses and significant cash outflows from cash used in operating activities over the past years as we develop our Houses. During the fiscal year ended January 2, 2022, the Company incurred a consolidated net loss of $269 million. During the fiscal year ended January 2, 2022, the Company had negative cash flow from operations of $127 million. As of January 2, 2022, the Company had an accumulated deficit balance of $1,022 million. As of January 2, 2022, the Company had a cash and cash equivalents balance of $213 million, and a restricted cash balance of $8 million.
In addition, the COVID-19 pandemic has continued to significantly impact our business and we have had to temporarily close some or all of our Houses, hotels and public restaurants, at different times due to the ongoing effects of the pandemic, which has and will continue to have an impact on our revenues. At the date of issuance of these consolidated financial statements, our Houses are open where possible.
In assessing the going concern basis of preparation of the consolidated financial statements for the fiscal year ended January 2, 2022, we have taken into consideration detailed cash flow forecasts for the Company, the Company’s forecast compliance with bank covenants, and the continued availability of committed and accessible working capital to the Company.
We have considered the impact of the COVID-19 pandemic on the Company and the resultant global economic uncertainties and have undertaken a re-assessment of the cash flow forecasts covering a period of at least 12 months from the date these financial statements are issued. Cash flow forecasts have been prepared based on a range of scenarios including, but not limited to, no further debt or equity funding, the timing of a full re-opening of our Houses staggered and/or deferred to the end of the calendar year, cost reductions, both limited and extensive, and a combination of these different scenarios. We have assessed the sensitivity analysis on cash flows, and in order to finance these cash flow forecasts, we have completed a series of positive financing events during Fiscal 2021, including issuance of new senior secured notes in an aggregate amount equal to $295 million, €62 million ($73 million) and £53 million ($73 million), issuance of $175 million of senior convertible preference shares, and completion of our IPO for net proceeds of $388 million after deducting underwriting discounts and other offering costs (including net proceeds from the partial exercise of the overallotment option). The senior secured notes include an option (which expires on March 31, 2022) for the Company to issue additional notes in an aggregate amount of up to $100 million on or prior to March 31, 2022. The Company exercised this option on March 9, 2022; see Note 23, Subsequent Events. The proceeds from the senior secured notes and senior convertible preference shares have been used to repay all amounts outstanding under the Permira Senior Facility and the US government-backed bank loan. The proceeds from the IPO were used to repay the outstanding principal balance of our revolving credit facility of $98 million, which remains in place as a source of additional liquidity if required, and to pay the redemption price of outstanding redeemable preferred shares, with the remainder to be used for general corporate purposes, including working capital needs. See Note 12, Debt, and Note 15, SHHL Redeemable Preferred Shares, for additional information.
We believe that the completed working capital events, our projected cash flows and the actions available to management to further control expenditure, as necessary, provide the Company with sufficient working capital (including cash and cash equivalents) to achieve its plans to recover from the impact of the pandemic, subject to the following key factors: • the continued access to Houses in a manner that is compliant with local laws and regulations, including the relaxing of mandatory capacity constraints, as well as anticipated demand; • the level of in-House sales activity (primarily sales of food and beverage) that, even after opening, may be subject to reduced capacity as a result of any on-going restrictions; • the continued high level of membership retention and renewals (which has been evidenced throughout the pandemic); and • the implementation of cost reduction measures that are aligned with the anticipated levels of capacity.
While the impact of lockdowns and other restrictions may re-occur beyond current expectations and impact the Company’s ability to keep open Houses and return to a level of operation consistent with pre COVID-19 within the timeframes assumed in management’s detailed cash flow forecasts, we believe that the Company has sufficient financial resources together with an established and cash generative business model, and access to capital.
Based on the available cash as a result of completed financing events discussed above, and the measures that have been put in place to control costs, we believe that the Company is able to continue in operational existence, meet its liabilities as they fall due, operate within its existing facilities, and meet all of its covenant requirements for a period of at least 12 months from the date these financial statements are issued.
Based on the above, the consolidated financial statements have been presented on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. Accordingly, we continue to adopt the going concern basis in preparing the consolidated financial statements for the fiscal year ended January 2, 2022. |
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| Principles of Consolidation | Principles of Consolidation
The consolidated financial statements of the Company include the accounts of Membership Collective Group Inc. and its subsidiaries, as well as certain consolidated variable interest entities (“VIEs”) for which the Company is considered the primary beneficiary (see Note 4, Consolidated Variable Interest Entities). Other parties’ interests in entities that the Company consolidates are reported as noncontrolling interests within shareholders’ deficit. Net loss and each component of other comprehensive (loss) income are attributed to the owners of the Company and to any noncontrolling interests. All intra-company assets and liabilities, equity, income, expenses and cash flows are eliminated in full on consolidation. |
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| Equity Method Investments | Equity Method Investments
The Company’s equity method investments consist of investments in which the Company does not control the investee but can exert significant influence over the financial and operating policies, as well as joint ventures where there is joint control (and in both cases if the investee is a VIE, where the Company is not the primary beneficiary of the VIE). The ability to exert significant influence is generally considered to exist when the Company owns between 20% and 50% of voting equity securities of the investee, in the case of corporate entities.
When the Company sells an interest in a subsidiary which then becomes an equity method investment, the retained interest is remeasured at fair value.
Investments are initially recognized at cost when purchased for cash, or at the fair value of shares received when acquired. The investments are subsequently carried at cost adjusted for the Company’s share of net income or loss and other changes in comprehensive income (loss) of the joint venture, less any dividends or distributions received by the Company. The investments are presented as equity method investments in the consolidated balance sheets. Income or loss from these investments is recorded as a separate line item in the consolidated statements of operations. Intercompany profits or losses associated with the Company’s equity method investments are eliminated until realized by the investee in transactions with third parties. Where distributions from equity-method investees and the Company’s share of investee losses are in excess of the carrying amount of the investment (including, where applicable, advances made by the Company to the investee), after the Company’s equity-method investment balance is reduced to zero, additional losses are recognized to the extent that the Company has guaranteed the investee’s obligations or has otherwise incurred legal or constructive obligations or has made payments on behalf of the investee.
The Company considers whether its equity method investments are impaired when events or circumstances suggest that the carrying amount may not be recoverable. An impairment charge is recognized in the consolidated statements of operations for a decline in value that is determined to be other-than-temporary. Once a determination is made that an other-than-temporary impairment exists, the investment is written down to its fair value. There were no other-than-temporary impairments recorded during the fiscal years ended January 2, 2022, January 3, 2021, and December 29, 2019. |
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| Variable Interest Entities | Variable Interest Entities
The Company analyzes its variable interests, including loans, guarantees, and equity investments, to determine if the entity in which the Company has a variable interest is a VIE. For those entities determined to be VIEs a quantitative and qualitative analysis is performed to determine if the Company will be deemed the primary beneficiary. The primary beneficiary of a VIE is defined as the variable interest holder that has a controlling financial interest in the VIE. A controlling financial interest is defined as one that has i) the power to direct the activities of the VIE that most significantly impact its economic performance and ii) the obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the VIE.
In evaluating whether the Company has the power to direct the activities of a VIE that most significantly impact its economic performance, the Company bases its qualitative analysis on its review of the design of the entity, its organizational structure including decision-making ability and the relevant development, ownership interest, operating, management and financial agreements. This evaluation requires consideration of all facts and circumstances relevant to decision-making that affect the entity’s future performance and the exercise of professional judgment in deciding which decision-making rights are most important.
The Company consolidates those entities in which it is determined to be the primary beneficiary. If the Company is not determined to be the primary beneficiary but can exercise significant influence over these entities, these investments are accounted for under the equity method of accounting. |
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| Concentration of Credit Risk | Concentration of Credit Risk
Credit risk is the risk of loss from amounts owed by customers and financial counterparties. Credit risk can occur at multiple levels; as a result of broad economic conditions, challenges within specific sectors of the economy, or from issues affecting individual companies. Financial instruments that potentially subject the Company to credit risk consist of cash, cash equivalents, restricted cash, accounts receivable, and other receivables.
The Company maintains cash, cash equivalents, and restricted cash with major financial institutions. The Company’s cash, cash equivalents, and restricted cash consist of bank deposits held with banks that, at times, exceed federally insured limits. The Company limits its credit risk by dealing with counterparties that are considered to be of high credit quality. |
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| Cash and Cash Equivalents | Cash and Cash Equivalents
Cash and cash equivalents include cash on hand, demand deposits, and all highly liquid investments with original maturities, when purchased, of three months or less. |
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| Restricted Cash | Restricted Cash
Restricted cash represents cash that is not available to the Company due to restrictions related to its use. As of January 2, 2022 and January 3, 2021, restricted cash related primarily to balances with the Company’s payments service provider, financing arrangements for the Soho Beach House in Miami, and security deposits.
The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown on the consolidated statements of cash flows.
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| Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts
Accounts receivable include amounts due from customers in connection with the Company’s in-house building service whereby the Company extends credit, generally without requiring collateral, based on its evaluation of the customer’s financial condition. Accounts receivable also include amounts due from customers, guests and members relating to services rendered. Any allowance for doubtful accounts includes management’s estimate of the amounts expected to be uncollectible on specific accounts receivable, taking into account the creditworthiness of the counterparty, the aging of the outstanding balance, and historical recoverability patterns. Allowance for doubtful accounts was $3 million as of January 2, 2022 and $3 million as of January 3, 2021.
While the Company has a concentration of credit risk in relation to certain customers, this risk is mitigated by payments on account and credit checks on customers. Typically, accounts receivable have terms ranging from 0-60 days and do not bear interest. As of January 2, 2022, there were two customers which individually accounted for more than 10% of trade receivables (16% and 10%); there were no customers which individually accounted for more than 10% of revenue during the fiscal year then ended. As of January 3, 2021, there was one customer which individually accounted for more than 10% of trade receivables (13%); there were no customers which individually accounted for more than 10% of revenue during the fiscal year then ended. |
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| Inventories | Inventories
Inventories are valued at the lower of cost or net realizable value and cost is determined using a weighted-average cost method. Inventories consist of raw materials, service stock and supplies (primarily food and beverage), and finished goods which are externally sourced. Raw materials and service stock and supplies totaled $8 million and $8 million as of January 2, 2022 and January 3, 2021, respectively. Finished goods totaled $22 million and $15 million as of January 2, 2022 and January 3, 2021, respectively. The Company records a reserve for obsolete or unusable inventory, where applicable. The reserve was zero and less than $1 million as of January 2, 2022 and January 3, 2021, respectively. |
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| Property and Equipment | Property and Equipment
Property and equipment relate to buildings for owned Houses, leasehold improvements for leased Houses, fixtures and fittings and other office equipment. Property and equipment are recorded at cost, or if acquired in a business combination, at fair value as of the acquisition date, less accumulated depreciation. Costs of improvements that extend the economic life or improve service potential are capitalized. Capitalized costs are depreciated over the assets’ estimated useful lives. Costs for normal repairs and maintenance are expensed as incurred. The carrying amounts of assets sold or retired and the related accumulated depreciation are eliminated in the year of disposal, with resulting gains or losses included in (gain) loss on sale of property and other, net.
Depreciation is recorded using the straight-line method over the assets’ estimated useful lives, which are generally as follows:
Depreciation expense is included in depreciation and amortization in the accompanying consolidated statements of operations.
Assets under construction relate mainly to the build out of future Houses, are stated at cost and depreciation begins when the asset is placed in service. For property under construction, the Company capitalizes all specifically identifiable costs related to development activities, as well as interest costs incurred while activities necessary to get the property ready for its intended use are in progress. During the fiscal years ended January 2, 2022 and January 3, 2021, the capitalized interest was immaterial. During the fiscal year ended December 29, 2019, the Company capitalized interest totaling $4 million.
Impairment of Property and Equipment
The Company reviews its property and equipment for impairment indicators at each reporting date. Impairment losses are required to be recorded for long-lived assets to be held and used by the Company when indicators of impairment are present and the carrying value of the assets exceeds the future undiscounted cash flows estimated to be generated by those assets. When an asset group to be held and used by the Company is determined to be impaired, the related carrying amount of the asset is adjusted to its estimated fair value. Recoverability of long-lived assets is measured by comparison of (i) the carrying amount of assets to (ii) the future undiscounted cash flows that the assets are expected to generate over their remaining lives. If the carrying amount of the assets is not recoverable, the amount of impairment, if any, is measured as the difference between the carrying value and the fair value of the impaired assets. If the Company determines that the remaining useful life is shorter than originally estimated, it amortizes the remaining carrying value over the new shorter useful life. No impairment losses were recorded during the fiscal year ended January 2, 2022. Impairment losses were less than $1 million during each of the fiscal years ended January 3, 2021 and December 29, 2019. |
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| Business Combinations | Business Combinations
The Company accounts for its business combinations using the acquisition method of accounting. The consideration transferred in a business combination is measured as the aggregate of the acquisition date fair values of the assets transferred by the Company to the sellers and equity instruments issued. Transaction costs directly attributable to the acquisition are expensed as incurred. Identifiable tangible and intangible assets acquired and liabilities assumed are measured separately at their fair values as of the acquisition date, irrespective of the extent of any noncontrolling interests. The excess of (i) the total consideration transferred, fair value of the noncontrolling interests and acquisition date fair value of any previously held equity interest in the acquiree over (ii) the fair value of the identifiable net assets of the acquiree is recorded as goodwill. If the consideration transferred is less than the fair value of the net assets of the acquiree, the difference is recognized directly in the consolidated statements of operations as a gain. During the measurement period, which can be up to one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed. See Note 3, Acquisitions, for additional information.
Transactions between entities under common control are excluded from the scope of the business combinations guidance. The Company accounts for transfers of assets, net assets or equity interests between entities under common control prospectively at their carrying values. |
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| Intangible Assets with Finite Useful Lives | Intangible Assets with Finite Useful Lives
The Company has certain finite lived intangible assets that were initially recorded at their fair values. These intangible assets consist primarily of brand names, membership lists, hotel management agreements, internally developed software and trademarks. Intangible assets with finite useful lives, which have a weighted-average life of 18 years, are amortized using the straight-line method over their estimated useful lives.
All finite lived intangible assets are reviewed for impairment when circumstances indicate that their carrying amounts may not be recoverable; for example, when there are material adverse changes in projected revenues or expenses, significant underperformance relative to historical or projected operating results, or significant negative industry or economic trends. The Company evaluates recoverability of a finite lived intangible asset by comparing its carrying value to its estimated fair value, which is determined through the income approach, the market approach or another appropriate method based on the circumstances. If a finite lived intangible asset’s estimated current fair value is less than its respective carrying value, the excess of the carrying value over the estimated fair value is recognized as an impairment loss in the consolidated statements of operations.
During Fiscal 2020, House closures and uncertainties surrounding re-opening procedures associated with the COVID-19 pandemic constituted a triggering event for testing whether intangible assets were impaired. The Company performed a quantitative assessment as of the first quarter of Fiscal 2020. No impairment losses were recorded during the fiscal years ended January 2, 2022, January 3, 2021, and December 29, 2019.
Costs incurred during the application development stage for internal-use software are capitalized. Capitalized website development costs and internal-use software costs are amortized using the straight-line amortization method over the estimated useful life of the applicable software. |
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| Goodwill | Goodwill
In January 2012, affiliates of the Yucaipa Companies, LLC acquired 58.9% of the outstanding equity interests of the entity which subsequently became Soho House Holdings Limited through a series of transactions. The Acquisition was accounted for using the acquisition method of accounting, which resulted in a new basis for the assets acquired and liabilities assumed and the recognition of goodwill. In addition, the Company recognized goodwill as a result of the acquisition of a business in Mykonos, Greece during the fiscal year ended December 29, 2019, as well as the acquisition of a controlling interest in Soho House—Cipura (Miami), LLC ("Cipura") and the companies that together operate existing and future "The LINE" and "Saguaro" hotels in the United States during the fiscal year ended January 2, 2022. See Note 3, Acquisitions, for additional information.
Goodwill is not amortized, but instead is tested for impairment annually. The Company assesses goodwill for potential impairment on the first day of the fourth fiscal quarter, or during the year if an event or other circumstances indicate that the Company may not be able to recover the carrying amount of the net assets of the reporting unit. A reporting unit is an operating segment or one level below the operating segment level, which is referred to as a component. The Company identifies its reporting units by assessing whether components (i) have discrete financial information available; (ii) engage in business activities; and (iii) have a segment manager who regularly reviews the component’s operating results. Net assets and goodwill of acquired businesses are allocated to the reporting unit(s) associated with the acquired business based on the anticipated organizational structure of the combined entities. If two or more components are deemed economically similar, those components are aggregated into one reporting unit when performing the annual goodwill impairment review. As of January 2, 2022 and January 3, 2021, the Company had seven and five reporting units with a goodwill balance, respectively.
In evaluating goodwill for impairment, the Company may first assess qualitative factors to determine whether it is more likely than not (that is, a likelihood of more than 50%) that the fair value of a reporting unit is less than its carrying amount. Qualitative factors that the Company considers include, for example, macroeconomic and industry conditions, overall financial performance, and other relevant entity-specific events. If the Company bypasses the qualitative assessment or concludes that it is more likely than not that the fair value of a reporting unit is less than its carrying value, then a quantitative goodwill impairment test is performed to identify potential goodwill impairment and measure the amount of goodwill impairment that will be recognized, if any.
When performing the quantitative goodwill impairment test, the Company compares the estimated fair value of each of its reporting units with their respective carrying values. If the estimated fair value of a reporting unit exceeds its carrying amount, goodwill is not considered impaired. If, however, the estimated fair value of a reporting unit is less than its carrying amount, the excess of the carrying value of the reporting unit over its fair value is recognized as a goodwill impairment. When performing a quantitative goodwill impairment assessment, the estimated fair value of a reporting unit is calculated using the income approach and the market approach. For the income approach, the Company uses internally developed discounted cash flow models that include the following assumptions, among others: projections of revenues, expenses, and related cash flows based on assumed long-term growth rates and demand trends; expected net working capital and capital expenditure requirements; and estimated discount rates. For the market approach, the Company relies upon valuation multiples derived from stock prices and enterprise values of publicly-traded companies that are comparable to the reporting units being evaluated.
While the Company tests its goodwill for impairment at least annually, it will test its goodwill for impairment if an event occurs or circumstances change which are considered to be a triggering event that would more likely than not reduce a reporting unit’s fair value below its carrying amount. In Fiscal 2019, the Company performed a qualitative assessment for impairment on each reporting unit's goodwill and determined that no goodwill impairment existed. In Fiscal 2020, House closures and uncertainties surrounding re-opening procedures associated with the COVID-19 pandemic constituted a triggering event for testing whether goodwill was impaired. The Company performed a quantitative assessment as of the first quarter of Fiscal 2020 and determined that no goodwill impairment existed. As of the first day of the fourth quarter of Fiscal 2020, the Company performed a qualitative goodwill assessment and concluded it was more likely than not that the fair value of the Company’s reporting units which carry goodwill exceeds their respective carrying amounts. In Fiscal 2021, the Company performed a quantitative impairment assessment for two reporting units and a qualitative assessment for the remaining five reporting units; based on these assessments, the Company determined that no goodwill impairment existed. |
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| Leases | Leases
The Company has entered into lease agreements for its Houses, hotels, restaurants, spas and other properties. The Company accounts for its leases under ASU 2016-02, Leases (Topic 842).
The Company determines the initial classification and measurement of its right-of-use assets and lease liabilities at the lease commencement date and thereafter, if the leases are modified. The lease term includes any renewal options and termination options that the Company is reasonably assured to exercise. The present value of lease payments is determined by using the interest rate implicit in the lease, if that rate is readily determinable; otherwise, the Company uses its incremental borrowing rate. The incremental borrowing rate is determined by using a portfolio approach based on the rate of interest that the Company would pay to borrow on a collateralized basis an amount equal to the lease payments for a similar term and in a similar economic environment.
Rent expense for operating leases is recognized on a straight-line basis over the reasonably assured lease term based on the total lease payments and is included in other in-house operating expenses and other operating expenses in the consolidated statements of operations.
The Company recognizes the amortization of the right-of-use asset for its finance leases on a straight-line basis over the reasonably assured lease term in depreciation and amortization in the consolidated statements of operations. The interest expense related to finance leases is recognized using the effective interest method and is included within interest expense, net.
For all leases, rent payments that are based on a fixed index or rate at the lease commencement date are included in the measurement of right-of-use assets and lease liabilities at the lease commencement date. Rent payments that vary based on the outcome of future indices, rates, or the Company’s revenues are expensed in the period incurred.
The Company has previously elected the practical expedient to not separate lease and non-lease components. The Company’s non-lease components are primarily related to property maintenance, which varies based on future outcomes, and thus is recognized in rent expense when incurred. In addition, the Company elected to exclude short-term leases, or leases with a term of 12 months or less that do not contain a purchase option that the Company is reasonably certain to exercise, from the right-of-use asset and lease liability balances.
As part of our overall plan to improve liquidity during the COVID-19 pandemic, the Company negotiated with certain lessors to defer or waive certain rent payments on leased buildings. Cash payment deferrals and waivers have been separately recorded in the period arrangements occurred, and therefore, there have been no remeasurements to the lease liabilities and right-of-use assets associated with the sites that received concessions. The Company accounted for the deferrals of lease payments as if there are no changes in the lease contract. Deferred amounts have been recognized in accounts payable and subsequent reversals will occur once the payments are made. As of January 2, 2022 and January 3, 2021, $12 million and $20 million, respectively, is recorded in accounts payable in the consolidated balance sheets related to deferred lease payments.
Sale Leaseback Transactions
The Company accounts for a transaction as a sale of an asset and a leaseback of that asset only if the buyer-lessor obtains control of the asset in accordance with the provisions of ASC 606, Revenue from Contracts with Customers (Topic 606). In these circumstances, the Company (as the seller-lessee) derecognizes the carrying amount of the asset, recognizes the transaction price for the sale, and accounts for the lease in accordance with Topic 842. When a sale and leaseback transaction does not qualify for sale accounting, the Company does not derecognize the underlying asset and accounts for the transaction as a financing obligation. |
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| Debt Issuance Costs | Debt Issuance Costs
Debt issuance costs relate to the Company’s debt instruments. These costs are reflected as a deduction from the carrying amount of the related debt instrument, with the exception of the Company’s revolving credit facility, for which debt issuance costs are reflected as a current asset following repayment in full of the amount drawn under the facility during the fiscal year ended January 2, 2022. Debt issuance costs are deferred and amortized over the term of the related debt instrument using the effective interest method. As of January 2, 2022 and January 3, 2021, these costs totaled $13 million (including $1 million presented within prepaid expenses and other current assets) and $9 million, respectively. Amortization expense associated with debt issuance costs (excluding write-offs recognized upon extinguishment of debt), which is included within interest expense, net, totaled $5 million, $6 million, and $6 million for the fiscal years ended January 2, 2022, January 3, 2021 and December 29, 2019, respectively. |
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| Fair Value Measurements | Fair Value Measurements
The Company has various financial instruments measured at fair value on a periodic basis for disclosure purposes. See Note 13, Fair Value Measurements, for further information. The Company also applies the fair value measurement framework to various nonrecurring measurements for its financial and nonfinancial assets and liabilities.
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date (an exit price). The Company uses the three-level valuation hierarchy for classification of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. Inputs refer broadly to the assumptions that market participants would use in pricing an asset or liability and may be considered observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from independent sources. Unobservable inputs are inputs that reflect the Company’s assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The three-tier hierarchy of inputs is summarized below. Level 1 Valuation is based upon quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 Valuation is based upon quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the instrument. Level 3 Valuation is based upon other unobservable inputs that are significant to the fair value measurement.
The classification of assets and liabilities within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement in its entirety. Proper classification of fair value measurements within the valuation hierarchy is considered each reporting period. The use of different market assumptions or estimation methods may have a material effect on the estimated fair value amounts. |
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| Revenue Recognition | Revenue Recognition
A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account for purposes of recognizing revenue. The majority of the Company’s contracts have a single performance obligation as the promise to transfer the individual goods or services is not separately identifiable from other promises in the contracts and, therefore, not distinct. There is no variable consideration or obligations for returns or refunds, and no other related obligations in the Company’s contracts.
Payment terms and conditions vary by contract type and may include a requirement of payment up to 45 days (as described further below). In instances where the timing of revenue recognition differs from the timing of invoicing, the Company has determined its contracts do not include a significant financing component.
The Company’s revenues are primarily derived from the following sources and are recognized when or as the Company satisfies a performance obligation by transferring a good or service to a customer.
Membership Revenues
Membership revenues are comprised of annual membership fees and one-time initial registration fees.
Memberships are offered on an annual basis for access to Houses. Annual membership fees are paid annually, quarterly or monthly and are deferred and recognized over the term to which the payment relates. Revenue is measured based on the amount invoiced for the member’s annual membership fee. The current portion of deferred revenue relates primarily to annual membership fees. There is no non-current deferred revenue relating to annual membership fees.
One-time registration fees are non-refundable and are invoiced to the member on their acceptance of membership. Such registration fees are recognized as non-current deferred revenue upon payment, and are recognized as revenue over the estimated average membership life of 20 years. Registration fees of $2 million, $1 million, and $1 million were recognized as revenue in the fiscal years ended January 2, 2022, January 3, 2021, and December 29, 2019 respectively. As of January 2, 2022 and January 3, 2021, current deferred revenue related to one-time registration fees totaled $2 million and $1 million, respectively, and non-current deferred revenue related to such fees totaled $28 million and $24 million, respectively.
In-House Revenues
In-House revenues represent all revenues generated within our Houses and primarily include revenues from food and beverage, accommodation, and spa products and treatments.
Revenue from food and beverage sales in the Company’s Houses is measured based on the amount invoiced for food and beverage purchased by the customer. Revenues are recognized when the goods are consumed. Payment is collected from the customer at the same time as the performance obligation is satisfied and, therefore, there are no material receivables, contract assets or contract liabilities related to food and beverage sales.
Hotel accommodation revenue is recognized when the rooms are occupied. Revenue is measured based on the amount invoiced for the room as specified in the contract when the room booking is made. Deposits received in advance of the hotel accommodation are deferred as contract liabilities and recognized as revenue when the customer occupies the room. As of January 2, 2022 and January 3, 2021, advance deposits of $9 million and $7 million, respectively, were recorded as accrued liabilities on the consolidated balance sheets.
Retail sales represent sales of goods and services, including from spas and cinema properties. Revenue from these transactions is recognized at the point in time when the goods and services have been delivered or rendered. Sales made online include shipping revenue and are recognized on dispatch to the customer. Payment terms with respect to retail sales and wholesale sales range from immediate payment at point of sale up to approximately 45 days. Amounts invoiced to customers for completed sales are recorded within accounts receivable on the consolidated balance sheets.
Other Revenues
Other revenues include all revenues that are not generated within our Houses. This includes revenues from Scorpios, Soho Works and our stand-alone restaurants, procurement fees from Soho House Design ("SHD"), Soho Home and Cowshed retail products and other revenues from products and services that we provide outside of our Houses, as well as management fees from the Ned. For further information regarding the Company’s relationship with The Ned, refer to Note 4, Consolidated Variable Interest Entities.
Revenue recognized from Soho House Design totaled $13 million, $14 million, and $23 million for the fiscal years ended January 2, 2022, January 3, 2021, and December 29, 2019, respectively. During the fiscal year ended December 29, 2019, Soho House Design ceased providing build-out services as a result of the Company’s decision to shift strategic focus to the higher-margin design services. Some of SHD’s build-out and design services are provided as part of the Company’s in-house development activities (including to certain related parties as described in Note 22, Related Parties), which do not generate revenues from third parties. The percentage of Soho House Design revenues relating to build-out and design contracts from unaffiliated third parties was 7% and 11% during the fiscal years ended January 2, 2022 and December 29, 2019, respectively. Soho House Design’s revenues relating to build-out and design contracts from unaffiliated third parties were immaterial during the fiscal year ended January 3, 2021.
Build-out and design contracts consist of a single performance obligation which is satisfied over time as the design and build work is completed and verified by third party contractors against specified contract milestones (output method of progress). The Company invoices for the work completed in accordance with the payment terms of the customer’s contract.
Sponsorship income is recognized upon the successful completion of the related event. Food and beverage sales from restaurants not located in one of the Company’s Houses or hotels are recognized in a manner similar to In-House food and beverage sales, as previously described.
Practical Expedients
The Company applies the practical expedient not to disclose the amount of the transaction price allocated to the remaining performance obligations and an explanation of when the Company expects to recognize that amount as revenue. In addition, the Company applies the practical expedient and does not disclose information about remaining performance obligations for contracts that have original expected durations of one year or less. |
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| In-House Operating Expenses and Other Operating Expenses | In-House Operating Expenses and Other Operating Expenses
In-House operating expenses represent the cost of sales of our In-House revenues and consist primarily of the cost of food and beverage products, employee-related costs for In-House staff members, rent expense, and utility costs. Other operating expenses represent the cost of sales of our Other revenues and consist primarily of the cost of retail products, food and beverage product costs associated with non-House restaurant operations, and employee-related costs for non-House staff members. |
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| Government Grants | Government Grants
Throughout Fiscal 2020, as a result of impacts from the COVID-19 pandemic, governmental agencies in the United Kingdom and other European countries provided the Company grants primarily to support payroll needs. These government grants are exclusive of funds received (and eventually paid off) under the Paycheck Protection Program enacted by the U.S. Coronavirus Aid, Relief, and Economic Security Act, which were accounted for as a borrowing (refer to Note 12, Debt, for more information). Government grants are recognized when there is reasonable assurance that cash will be received and that conditions attached to the grant have been met. Such government grants totaled $21 million during the fiscal year ended January 2, 2022 and are presented as a reduction of payroll expenses within in-House operating expenses ($17 million), other operating expenses ($3 million) and general and administrative expense ($1 million) on the consolidated statements of operations. During the fiscal year ended January 3, 2021, government grants totaled $26 million and were presented as a reduction of payroll expenses within in-House operating expenses ($19 million), other operating expenses ($4 million) and general and administrative expense ($3 million) on the consolidated statements of operations. |
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| Interest Expense | Interest Expense
Interest expense is charged to the consolidated statements of operations over the term of the debt such that the amount charged is at a constant rate on the carrying amount (i.e. using the effective interest method). Interest expense includes the amortization of debt issuance costs, which are initially recognized as a reduction in the proceeds of the associated debt instrument, and interest expense on finance leases. |
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| Business Interruption and Other Insurance Claims | Business Interruption and Other Insurance Claims
The Company maintains insurance policies to cover business interruption and property damage with terms that it believes to be adequate and appropriate. When the Company receives proceeds from the insurance claim in connection with property damage, which reimburses the replacement cost for repair or replacement of damaged assets, the proceeds are recognized as a reduction against the value of the assets written off. Business interruption proceeds which reimburse the time-element of actual costs and lost profits following damage to property are recognized as non-operating income. Business interruption proceeds related to the cost to expedite repairs, retention pay to workers temporarily displaced, and additional expenses to stay in business following damage to property are recognized as a reduction of the related expense line item. If there are any outstanding receivables in respect of insurance recoveries, they are recognized only when the Company deems collection to be virtually certain. |
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| Income Taxes | Income Taxes
Significant judgment is involved in determining the provision for income taxes. There are certain transactions for which the ultimate tax determination is unclear due to uncertainty in the ordinary course of business. The Company recognizes tax liabilities based on its assessment of whether its tax positions are more likely than not to be sustained, based on the technical merits and considerations of the relevant taxing authorities’ widely understood administrative practices and precedence. The Company recognizes accrued interest and penalties for any unrecognized tax benefits as a component of income tax (benefit) expense.
Income tax (benefit) expense consists of taxes currently payable and changes in deferred tax assets and liabilities calculated according to local tax rules. Deferred tax assets and liabilities are based on temporary differences that arise between carrying values of assets and liabilities used for financial reporting purposes and amounts used for taxation purposes and the future tax benefits of tax loss carry forwards. A deferred tax asset is recognized only to the extent that it is more likely than not that future taxable profits will be available against which the asset can be utilized.
Significant judgment is required in determining any valuation allowance recorded against deferred tax assets. In assessing the need for a valuation allowance, management considers all available evidence for each jurisdiction, including past operating results, estimates of future taxable income and the feasibility of ongoing tax planning strategies. In the event that the Company changes its determination as to the amount of deferred tax assets that can be realized, the Company will adjust its valuation allowance with a corresponding impact to income tax (benefit) expense in the period in which such determination is made.
The amount of deferred tax recognized in any period is based on tax rates enacted as of the balance sheet date. The impact of tax law changes is recognized in periods when the change is enacted. The Company classifies all deferred tax assets and liabilities, including any related valuation allowance, as non-current on the consolidated balance sheets. |
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| Indirect Taxes | Indirect Taxes
The Company remits sales, value added and other indirect taxes to various taxing jurisdictions as a result of revenue earned from the sale of products and services to customers. Specific sales tax rates applicable to the Company’s products and services vary by taxing jurisdiction. The Company records sales, value added and other indirect taxes as liabilities when incurred. Revenue is recognized net of sales, value added and other indirect taxes. |
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| Foreign Currency and Operations | Foreign Currency and Operations
During periods preceding the IPO that are presented in these consolidated financial statements, our business was conducted through SHHL. The functional currency of SHHL is the British pound sterling ("GBP"). As a result of the Reorganization Transactions in connection with the IPO, SHHL became a wholly-owned subsidiary of MCG. The functional currency of MCG is the United States dollar ("USD"). Our reporting currency for the consolidated financial statements is the USD for all periods presented.
The functional currency is the currency of the primary economic environment in which an entity’s operations are conducted. The functional currency of the Company’s subsidiaries is generally the same as their local currency. The Company translates the financial statements of its subsidiaries into the presentation currency using exchange rates in effect on the balance sheet date for assets and liabilities and average exchange rates for the period for statement of operations accounts, with the difference recognized in accumulated other comprehensive (loss) income. The following exchange rates were used to translate the financial statements of the Company and its foreign subsidiaries into USD:
Foreign currency transaction gains and losses are included in other in the consolidated statements of operations. The Company recorded foreign currency transaction net losses of $26 million, net gains of $3 million, and net gains of $3 million during the fiscal years ended January 2, 2022, January 3, 2021, and December 29, 2019, respectively. |
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| Pre-Opening Expenses | Pre-Opening Expenses
Pre-opening expenses include costs associated with the acquisition, opening, conversion and initial setup of new and converted sites, including rent, overhead expenses, pre-opening marketing and incremental wages to support the “ramp up” period of time to support the site in the initial period following opening. These costs are expensed as incurred and are included in pre-opening expenses in the consolidated statements of operations. The entire balance of these costs is related to pre-opening activities for our Houses in each of the periods presented. |
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| Advertising Costs | Advertising Costs
The cost of advertising and media is expensed as incurred. For the fiscal years ended January 2, 2022, January 3, 2021, and December 29, 2019, advertising costs totaled $6 million, $4 million, and $6 million, respectively. Advertising costs are included in general and administrative expense in the consolidated statements of operations. |
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| Share-Based Compensation | Share-Based Compensation
Share-based compensation is measured at the estimated fair value of the award on the grant date and recognized as an expense on a straight-line basis over the vesting period of the award. The Company does not reduce share-based compensation for an estimate of forfeitures and will account for forfeitures when they occur. In order to determine the grant date fair value of awards granted prior to IPO, the Company applied the Black-Scholes option-pricing valuation model. The determination of fair value of these awards is subjective and involves estimates and assumptions including expected term of the awards, volatility of the Company’s shares, expected dividend yield, and the risk-free rate. The Company uses the closing stock price on the date of grant to determine the grant date fair value for restricted stock units ("RSUs").
Share-based compensation expense is recorded within general and administrative expense in the consolidated statements of operations. See Note 14, Share-Based Compensation, for additional information. |
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| Offering Costs | Offering Costs
Direct and incremental legal and accounting costs associated with the Company’s initial public offering totaling $40 million have been recorded as a reduction of offering proceeds within additional paid-in capital in the consolidated balance sheet as of January 2, 2022. In addition, during the fiscal year ended January 2, 2022, the Company incurred $14 million, respectively, of costs related to the offering which were recognized in other in the consolidated statements of operations. There were no offering costs incurred during the fiscal years ended January 3, 2021 or December 29, 2019. |
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| Comprehensive Loss | Comprehensive Loss
The entire balance of accumulated other comprehensive income (loss), net of income taxes, is related to the cumulative translation adjustment in each of the periods presented. The changes in the balance of accumulated other comprehensive income (loss), net of income tax, are attributable solely to the net change in the cumulative translation adjustment in each of the periods presented, and include the error correction described above during the fiscal year ended January 2, 2022. |
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| Net Loss per Share | Net Loss per Share
The Company computes net loss per share using the two-class method. As the liquidation and dividend rights are identical, the undistributed earnings or losses are allocated on a proportionate basis to each class of common stock, and the resulting basic and diluted loss per share attributable to common stockholders are therefore the same for Class A and B common stock. Basic loss per share is computed by dividing loss available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted loss per share is based on the weighted-average number of common shares outstanding for the period and respective share equivalents outstanding at the end of the period, unless the effect is anti-dilutive. An anti-dilutive impact is a reduction in net loss per share resulting from the conversion, exercise, or contingent issuance of certain securities. Since the Company had net losses for all the periods presented, basic and diluted loss per share are the same, and additional potential common shares have been excluded as their effect would be anti-dilutive.
As discussed in Note 1, Nature of the Business, immediately prior to the IPO, the Company completed certain reorganization transactions which resulted in changes to our common stock and issued and outstanding shares but no change in relative shareholder rights, rank, or value before and after the reorganization transaction. As such, the Reorganization Transactions were considered to have an equivalent effect to a stock split and require retrospective treatment for purposes of computing loss per share. All share and per share information has been retroactively adjusted to reflect the impact of the Reorganization Transactions for all periods presented. The issuance of shares in the IPO and the impact of conversion of the senior convertible preference shares into Class A common stock are included in the calculation of loss per share prospectively from the date of issuance or conversion, as the case may be. |
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| SHHL Redeemable Preferred Shares and SHHL Redeemable C Ordinary Shares | SHHL Redeemable Preferred Shares and SHHL Redeemable C Ordinary Shares
As of January 3, 2021 and December 29, 2019, SHHL had redeemable preferred shares and redeemable C ordinary shares outstanding, which are collectively referred to as "redeemable shares." In addition, in March 2021, the Company issued senior convertible preference shares, which were subsequently converted into Class A common stock immediately after the IPO. See Note 15, SHHL Redeemable Preferred Shares and Note 16, SHHL C Ordinary Shares, for additional information.
Preferred shares subject to mandatory redemption as of a specified date are classified as debt and are initially measured at fair value. Contingently redeemable shares (including shares that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company's control) are classified as temporary equity and initially measured at fair value.
When redemption is deemed to be probable, if the carrying amount of the redeemable shares is less than the redemption value, the carrying value of the shares is increased by periodic accretions so that the carrying value is equal to the redemption amount at the earliest redemption date. Such accretion is recorded as a dividend in the consolidated statements of changes in shareholders' equity (deficit).
Prior to February 2019, SHHL had certain preferred shares that were redeemable after five years and were considered probable of becoming redeemable in the future. For those shares, the redemption price was fixed, such that no adjustment or accretion was required to the carrying value. Certain other redeemable shares which are neither initially redeemable nor considered to be probable to be redeemable are recorded at their initial carrying value, and an adjustment of the initial carrying amount is not made until it is probable that the shares will become redeemable. During the second fiscal quarter of 2021, the Company concluded that certain SHHL redeemable preferred shares were probable of becoming redeemable and, therefore, the shares were accreted to their redemption value; see Note 15, SHHL Redeemable Preferred Shares, for additional information. |
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| Commitments and Contingencies | Commitments and Contingencies
The Company is subject to loss contingencies that arise out of operations in the normal course of business. Periodically, the Company reviews the status of each significant matter and assesses the potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable, and the amount can be reliably estimated, such amount is recognized in other liabilities on the consolidated balance sheets.
Contingent liabilities are measured at the Company’s best estimate of the expenditure required to settle the obligation as of the end of the reporting period. If there is no best estimate, an amount is recorded for the lowest amount of the range of potential outcomes. Refer to Note 18, Commitments and Contingencies, for more information. |
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| Future Accounting Standards | Future Accounting Standards
In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). The ASU adds to US GAAP an impairment model (known as the current expected credit loss, or “CECL,” model) that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes as an allowance its estimate of expected credit losses, which is intended to result in the more timely recognition of losses. Under the CECL model, entities will estimate credit losses over the entire contractual term of the instrument from the date of initial recognition of the financial instrument. The update is effective for the Company for fiscal years beginning after December 15, 2022 or the interim period in which the Company loses emerging growth company status, and should be adopted using a modified retrospective approach, which applies a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective.
In November 2018 and April 2019, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments – Credit Losses and ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, respectively. These amendments add clarity to certain areas within ASU 2016-13. In May 2019, the FASB issued ASU 2019-05, Financial Instruments - Credit Losses (Topic 326), Target Transition Relief, which provided transition relief for entities adopting ASU 2016-13 by allowing the election of the fair value option on certain financial instruments. The effective date and the transition methodology for the amendments in these updates are the same as in ASU 2016-13.
ASU 2016-13 and related updates apply to how the Company evaluates impairments of its trade receivables and notes receivable. The Company does not expect these ASUs to have a material impact on its consolidated financial statements and related disclosures.
In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. The ASU requires entities to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC 606, Revenue from Contracts with Customers. The update is effective for the Company for fiscal years beginning after December 15, 2023 or the interim period in which the Company loses emerging growth company status, and should be adopted using a prospective approach to business combinations occurring on or after the effective date of the amendments. The Company is currently evaluating the impact of this ASU on its consolidated financial statements and related disclosures.
In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance. The amendments in this update require additional annual disclosures about transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy. The update is effective for the Company for fiscal years beginning after December 15, 2021, and should be adopted prospectively to all transactions within the scope of the amendments that are reflected in financial statements at the date of initial application and new transactions entered into after the date of initial application, or retrospectively to those transactions. The Company is currently evaluating the impact of this ASU on its consolidated financial statements and related disclosures. |
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| Recently Adopted Accounting Standards | Recently Adopted Accounting Standards
In August 2020, the FASB issued ASU 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40). ASU 2020-06 simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity. The ASU is part of the FASB’s simplification initiative, which aims to reduce unnecessary complexity in US GAAP. The ASU’s amendments are effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. The Company elected to early adopt the ASU on January 4, 2021. The provisions of this ASU have been applied on a modified retrospective basis and did not have a material impact on the Company’s consolidated financial statements and related disclosures.
In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract. The ASU clarifies that implementation costs incurred by customers in cloud computing arrangements are deferred if they would be capitalized by customers in the software licensing arrangements under the internal-use software guidance. ASU 2018-15 also clarifies that any capitalized costs should not be recorded to depreciation and amortization in the consolidated statement of operations. The Company adopted this standard effective January 4, 2021 prospectively to all new implementation costs incurred after adoption. The amendments of ASU 2018-15 did not have a significant impact on the Company’s consolidated financial statements and related disclosures. |
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Summary of Significant Accounting Policies (Tables) |
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| Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of restrictions on cash and cash equivalents | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown on the consolidated statements of cash flows.
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| Schedule of Estimated Useful Lives of Property Plant and Equipment | Depreciation is recorded using the straight-line method over the assets’ estimated useful lives, which are generally as follows:
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| Summary of foreign exchange rates | The following exchange rates were used to translate the financial statements of the Company and its foreign subsidiaries into USD:
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Consolidated Variable Interest Entities (Tables) |
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| Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of consolidated VIEs' assets and liabilities included in the condensed consolidated balance sheets | The following table summarizes the carrying amounts and classification of the consolidated VIEs’ assets and liabilities included in the consolidated balance sheets. The obligations of the consolidated VIEs other than Soho Restaurants Limited are non-recourse to the Company, and the assets of the VIEs can be used only to settle those obligations.
(1)
Amounts as of January 2, 2022 include balances related to SWNA following the Soho Works Acquisition, as this entity continues to be thinly capitalized. |
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Equity Method Investments (Tables) |
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| Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule Of Equity Method Investment Summarized Ownership Interests | Equity method investment ownership interests in each of the periods presented in these consolidated financial statements are as follows:
(1)
During Fiscal 2021, the Company acquired the remaining 50% interest in Cipura and had 100% ownership of the investment as of January 2, 2022. The entity became a consolidated subsidiary of the Company beginning on the date of acquisition, as described in Note 3, Acquisitions. |
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| Summary of the company's maximum exposure to losses related to its equity method investments | The following tables present summarized financial information for all unconsolidated equity method investees. The Company’s maximum exposure to losses related to its equity method investments is limited to its ownership interests as well as certain guarantees as described in Note 18, Commitments and Contingencies.
(1) Includes the financial information of Cipura through May 10, 2021. (2)
The net loss shown above relates entirely to continuing operations. |
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| Summary of equity method investment summarized balance sheet |
(1)
Excludes the financial information of Cipura, which ceased to be an equity method investee on May 10, 2021 as a result of the Cipura Acquisition, as described in Note 3, Acquisitions. |
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Leases (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jan. 02, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Lessee, Lease, Description [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of the maturity of the Company's operating and finance lease liabilities | The maturity of the Company’s operating and finance lease liabilities as of January 2, 2022 is as follows:
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| Summary of the supplemental disclosure for the statement of cash flows related to operating and finance leases | The following information represents supplemental disclosure for the statement of cash flows related to operating and finance leases:
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| Summary of the additional information related to operating and finance leases | The following summarizes additional information related to operating and finance leases:
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| Summary of the Company's estimated future undiscounted lease payments for current leases | The following summarizes the Company’s estimated future undiscounted lease payments for current leases under construction, including properties where the Soho House Design team is acting as the construction manager:
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| DTLA Property [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Lessee, Lease, Description [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of the supplemental disclosure for the statement of cash flows related to operating and finance leases | The following information represents supplemental disclosure for the statement of cash flows related to the financing obligation for the DTLA property:
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| Summary of the company's future undiscounted finance lease | The following summarizes the Company's future undiscounted lease payments for the DTLA property:
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Revenue Recognition (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jan. 02, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue Recognition [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of disaggregation of revenue | The following table includes estimated revenues expected to be recognized in the future related to performance obligations that were unsatisfied (or partially unsatisfied) at the end of the reporting period ending January 2, 2022.
The following table provides information about contract receivables, contract assets and contract liabilities from contracts with customers:
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| Summary of Changes in Contract Liabilities [Table Text Block] | Significant changes in contract liabilities balances during the period are as follows:
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Prepaid Expenses and Other Current Assets (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jan. 02, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Prepaid Expense and Other Assets, Current [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Prepaid Expenses And Other Current Assets | The table below presents the components of prepaid expenses and other current assets.
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Property and Equipment, Net (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jan. 02, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Property, Plant and Equipment, Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Property and Equipment | Property and equipment is comprised of the following:
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Goodwill and Intangible Assets (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jan. 02, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of Goodwill | A summary of goodwill for each of the Company’s applicable reportable segments from December 30, 2018 to January 2, 2022 is as follows:
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| Summary of Finite-lived Intangible Assets | A summary of finite-lived intangible assets as of January 2, 2022 and January 3, 2021 is as follows:
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| Schedule of future amortization expense | The following table represents estimated aggregate amortization expense for each of the next five fiscal years:
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Accrued Liabilities and Other Current Liabilities (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jan. 02, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Payables and Accruals [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Accrued Liabilities [Table Text Block] | The table below presents the components of accrued liabilities.
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Debt (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jan. 02, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of Property Mortgage Loans, Net of Debt Issuance Costs | Debt balances, net of debt issuance costs, are as follows:
(1) The Company does not believe that there are any material potential effects on financial reporting of the market-wide migration away from LIBOR, which was phased out at the end of calendar year 2021, to alternative reference rates. As of January 2, 2022, the Company did not have any outstanding debt balances with associated LIBOR rates. To the extent such debt balances arise, the Company plans to replace the LIBOR benchmark rate with another benchmark rate, such as the SONIA.
Property mortgage loans, net of debt issuance costs, are as follows:
Related party loans, net of current portion and imputed interest, are as follows:
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| Summary of Future Principal Payments for the Company's Debt, Property Mortgage Loans, and Related Party Loans | The following table presents future principal payments for the Company’s debt, property mortgage loans, and related party loans as of January 2, 2022:
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Fair Value Measurements (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jan. 02, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of Estimated Fair Values of the Company's Debt Instruments | The following table presents the estimated fair values (all of which are Level 3 fair value measurements) of the Company’s debt instruments with maturity dates in 2022 and thereafter:
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Share-Based Compensation (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jan. 02, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of Share-Based Compensation | Share-based compensation during the fiscal years ended January 2, 2022 and January 3, 2021 was recorded in the consolidated statements of operations within general and administrative expense as shown in the following table:
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| Assumptions Used in Applying Pricing Model | The weighted-average assumptions used in valuing SARs and restricted stock awards (previously granted as Growth Shares) granted during each period are set forth in the following table:
(1) The expected average life assumption is based on the Company's expectation for a liquidity event as a grant date. (2) The expected volatility assumption is developed using leverage-adjusted historical volatilities for public peer companies for the period equal to the expected average life of the awards. (3) The expected dividend yield is 0.0% since the Company does not expect to pay dividends.
The risk-free rate is based on the US Treasury Rate Yield Curve Rate as of the grant date with maturities equal to the expected average life of the awards. |
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| SARS [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of Stock Option Activity | The following table shows a summary of all SARs granted under the 2020 Plan:
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| Restricted Stock [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary Of All Restricted Stock Awards | The following table shows a summary of all restricted stock awards (previously granted as Growth Shares) granted under the 2020 Plan:
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| Restricted Stock Units (RSUs) [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary Of All RSUs Granted | The following table shows a summary of all RSUs granted under the 2021 Plan:
As of January 2, 2022, total compensation expense not yet recognized related to unvested RSUs under the 2021 Plan was approximately $23 million, which is expected to be recognized over a weighted average period of 3.02 years. |
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Loss Per Share and Shareholders' Equity (Deficit) (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jan. 02, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Changes in each Class of Redeemable Preferred Shares, Ordinary Shares and Common Stock | The table below presents changes in each class of the Company’s redeemable preferred shares, ordinary shares and common stock, as applicable:
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| Schedule of Reconciliation of the Loss and Number of Shares Basic and Diluted Loss Per Shares | The table below illustrates the reconciliation of the loss and the number of shares used in the calculations of basic and diluted loss per share:
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Income Taxes (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jan. 02, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Components of Loss Before Income Taxes | Below are the components of loss before income taxes for the fiscal years ended January 2, 2022, January 3, 2021, and December 29, 2019 under the following tax jurisdictions:
(1)
Prior to the Reorganization Transactions, Domestic refers to the UK tax jurisdiction and Foreign refers to all non-UK tax jurisdictions. Following the Reorganization Transactions, Domestic refers to the US tax jurisdiction and Foreign refers to all non-US tax jurisdictions. |
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| Schedule of Provision For Income Taxes | The provision for income taxes is as follows:
(1)
Prior to the Reorganization Transactions, Domestic refers to the UK tax jurisdiction and Foreign refers to all non-UK tax jurisdictions. Following the Reorganization Transactions, Domestic refers to the US tax jurisdiction and Foreign refers to all non-US tax jurisdictions. |
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| Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the US and UK statutory income tax rate to the consolidated effective income tax rate is as follows:
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| Schedule of Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities consist of the following:
(1) For US tax purposes, the LINE and Saguaro Acquisition transaction was considered an asset acquisition. Refer to Note 3, Acquisitions, for further information on this transaction.
Total net deferred taxes are classified as follows:
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| Schedule of Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
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Segments (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jan. 02, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of disaggregated revenue | The following tables present disaggregated revenue for the fiscal years ended January 2, 2022, January 3, 2021, and December 29, 2019 and the key financial metrics reviewed by the CODM for the Company’s reportable segments:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of reconciliation of reportable segment adjusted EBITDA to total consolidated segment revenue | The following tables present the reconciliation of reportable segment adjusted EBITDA to total consolidated segment revenue and the reconciliation of net loss to adjusted EBITDA:
(1) Includes the effect of a prior-period error correction, as discussed in Note 2, Summary of Significant Accounting Policies – Basis of Presentation.
(1) The entire balance of these costs is related to pre-opening activities for our Houses in each of the periods presented. (2)
Represents other items included in operating expenses, which are outside the normal scope of the Company’s ordinary activities or non-cash, including expenses incurred in respect of membership credits of $8 million and $12 million for the fiscal years ended January 2, 2022 and January 3, 2021, respectively. Other expenses, net also include IPO-related costs of $14 million and corporate financing and restructuring costs of $2 million incurred during the fiscal year ended January 2, 2022. For the fiscal year ended January 3, 2021, other expenses, net include COVID-19 related charges of $5 million, abandoned project costs of $7 million, corporate restructuring costs of $6 million, and the Soho Restaurants guarantee provision of $5 million (refer to Note 4, Consolidated Variable Interest Entities). |
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| Summary of long-lived asset information by geographic area | The following table presents long-lived asset information (which includes property and equipment, net, operating lease right-of-use assets and equity method investments) by geographic area as of January 2, 2022 and January 3, 2021. Asset information by segment is not reported internally or otherwise regularly reviewed by the CODM.
|
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Related Party Transactions (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jan. 02, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of details amounts owed by (to) equity method investees due within one year are as follows | The amounts owed by (to) equity method investees due within one year are as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies - Summary Of Restricted Cash And Cash Equivalents (Details) - USD ($) $ in Thousands |
Jan. 02, 2022 |
Jan. 03, 2021 |
Dec. 29, 2019 |
Dec. 30, 2018 |
|---|---|---|---|---|
| Accounting Policies [Abstract] | ||||
| Cash and Cash Equivalents, at Carrying Value | $ 212,833 | $ 52,887 | ||
| Restricted Cash, Current | 7,829 | 7,083 | ||
| Total cash, cash equivalents, and restricted cash shown on the consolidated statement of cash flows | $ 220,662 | $ 59,970 | $ 56,315 | $ 71,457 |
Summary of Significant Accounting Policies - Summary of foreign exchange rates (Details) |
Jan. 02, 2022
Rate
|
Jan. 03, 2021
Rate
|
Dec. 29, 2019
Rate
|
|---|---|---|---|
| Great Britain pound sterling | |||
| Foreign Currency Exchange Rate | 135.00% | 137.00% | |
| Foreign Currency Exchange Rate, Remeasurement | 138.00% | 128.00% | 128.00% |
| Canadian dollar | |||
| Foreign Currency Exchange Rate | 79.00% | 78.00% | |
| Foreign Currency Exchange Rate, Remeasurement | 80.00% | 74.00% | 75.00% |
| Euro | |||
| Foreign Currency Exchange Rate | 114.00% | 122.00% | |
| Foreign Currency Exchange Rate, Remeasurement | 118.00% | 114.00% | 112.00% |
| Hong Kong dollar | |||
| Foreign Currency Exchange Rate | 13.00% | 13.00% | |
| Foreign Currency Exchange Rate, Remeasurement | 13.00% | 13.00% | 13.00% |
| Israeli new shekel | |||
| Foreign Currency Exchange Rate | 32.00% | 31.00% | |
| Foreign Currency Exchange Rate, Remeasurement | 31.00% | 29.00% | 28.00% |
Consolidated Variable Interest Entities - Additional Information (Detail) $ in Thousands, £ in Millions |
12 Months Ended | ||||||
|---|---|---|---|---|---|---|---|
Dec. 26, 2018 |
Sep. 29, 2017 |
Jan. 02, 2022
USD ($)
|
Jan. 03, 2021
USD ($)
|
Aug. 18, 2020
USD ($)
|
Aug. 18, 2020
GBP (£)
|
Dec. 01, 2017 |
|
| Consolidated Variable Interest Entities [Line Items] | |||||||
| Cash and cash equivalents | $ 212,833 | $ 52,887 | |||||
| Operating Lease, Right-of-Use Asset | $ 996,991 | 961,787 | |||||
| Soho Restaurants Limited [Member] | |||||||
| Consolidated Variable Interest Entities [Line Items] | |||||||
| Equity method investment, Ownership percentage | 50.00% | ||||||
| Sold equity interest | 50.00% | 50.00% | |||||
| Varible interest entity, Loss exposure amount | $ 1,000 | £ 1 | |||||
| Soho Works Limited [Member] | |||||||
| Consolidated Variable Interest Entities [Line Items] | |||||||
| Equity method investment, Ownership percentage | 100.00% | ||||||
| Common stock shares voting rights | 50% | ||||||
| Granted option to subscribe for individuals | 30.00% | ||||||
| Varible interest entity, Size of VIE | The Soho Works Limited (“SWL”) joint venture develops and operates Soho-branded, membership-based co-working spaces, with two sites currently in operation in the UK. | ||||||
| Soho Works Limited [Member] | Exercise of Option [Member] | |||||||
| Consolidated Variable Interest Entities [Line Items] | |||||||
| Equity method investment, Ownership percentage | 70.00% | ||||||
| Soho Works North America, LLC [Member] | |||||||
| Consolidated Variable Interest Entities [Line Items] | |||||||
| Equity method investment, Ownership percentage | 70.00% | ||||||
| Common stock shares voting rights | 50% | ||||||
| Granted option to subscribe for individuals | 30.00% | ||||||
| Mollie's Motels Holdings Limited [Member] | |||||||
| Consolidated Variable Interest Entities [Line Items] | |||||||
| Sold equity interest | 100.00% | 100.00% | |||||
| Beach House JV [Member] | |||||||
| Consolidated Variable Interest Entities [Line Items] | |||||||
| Equity method investment, Ownership percentage | 100.00% | ||||||
| General and Administrative Expense [Member] | |||||||
| Consolidated Variable Interest Entities [Line Items] | |||||||
| Provision for loan, lease, and other losses | $ 5,000 | ||||||
Equity Method Investments - Schedule Of Equity Method Investment Summarized Ownership Interests (Details) |
Jan. 02, 2022 |
Jan. 03, 2021 |
Dec. 29, 2019 |
|---|---|---|---|
| Soho House Toronto Partnership [Member] | |||
| Schedule of Equity Method Investments [Line Items] | |||
| Equity method investment, Ownership percentage | 50.00% | 50.00% | 50.00% |
| Soho House Cipura (Miami), LLC [Member] | |||
| Schedule of Equity Method Investments [Line Items] | |||
| Equity method investment, Ownership percentage | 50.00% | 50.00% | |
| Ludlow Acquisition LLC [Member] | |||
| Schedule of Equity Method Investments [Line Items] | |||
| Equity method investment, Ownership percentage | 33.30% | 33.30% | 33.30% |
| Raycliff Red LLP [Member] | |||
| Schedule of Equity Method Investments [Line Items] | |||
| Equity method investment, Ownership percentage | 50.00% | 50.00% | 50.00% |
| Raycliff Shoreditch Holdings LLP [Member] | |||
| Schedule of Equity Method Investments [Line Items] | |||
| Equity method investment, Ownership percentage | 50.00% | 50.00% | 50.00% |
| Redchurch Partner Limited [Member] | |||
| Schedule of Equity Method Investments [Line Items] | |||
| Equity method investment, Ownership percentage | 50.00% | 50.00% | 50.00% |
| Mimea XXI S.L. [Member] | |||
| Schedule of Equity Method Investments [Line Items] | |||
| Equity method investment, Ownership percentage | 50.00% | 50.00% | 50.00% |
| Mirador Barcel S.L. [Member] | |||
| Schedule of Equity Method Investments [Line Items] | |||
| Equity method investment, Ownership percentage | 50.00% | 50.00% | 50.00% |
| Little Beach House Barcelona S.L.[Member] | |||
| Schedule of Equity Method Investments [Line Items] | |||
| Equity method investment, Ownership percentage | 50.00% | 50.00% | |
| Soho Beach House Canouan Limited [Member] | |||
| Schedule of Equity Method Investments [Line Items] | |||
| Equity method investment, Ownership percentage | 20.00% |
Equity Method Investments - Schedule Of Equity Method Investment Summarized Ownership Interests (Details) (Parenthetical) - Soho House Cipura (Miami), LLC [Member] |
Jan. 02, 2022 |
Jan. 03, 2021 |
|---|---|---|
| Schedule of Equity Method Investments [Line Items] | ||
| Percentage of equity interest acquired | 50.00% | |
| Equity Method Investment, Ownership Percentage | 100.00% |
Equity Method Investments - Summary of The Company's Maximum Exposure To Losses Related To Its Equity Method Investments (Detail) - USD ($) $ in Thousands |
12 Months Ended | |||||||
|---|---|---|---|---|---|---|---|---|
Jan. 02, 2022 |
Jan. 03, 2021 |
Dec. 29, 2019 |
||||||
| Shedule Of Equity Method Investment Summarized Statement Of Operations [Line Items] | ||||||||
| Revenues | $ 560,554 | $ 384,376 | $ 642,035 | |||||
| Operating loss | (188,026) | (154,730) | (58,858) | |||||
| Net loss | (268,714) | (235,275) | (128,000) | |||||
| Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | ||||||||
| Shedule Of Equity Method Investment Summarized Statement Of Operations [Line Items] | ||||||||
| Revenues | 32,022 | [1] | 30,547 | 55,568 | ||||
| Operating loss | (4,442) | [1] | (3,923) | 14,204 | ||||
| Net loss | [2] | $ (5,227) | [1] | $ (6,737) | $ (546) | |||
| ||||||||
Equity Method Investments - Summary of Equity Method Investment Summarized Balance Sheet (Detail) - USD ($) $ in Thousands |
Jan. 02, 2022 |
Jan. 03, 2021 |
|||
|---|---|---|---|---|---|
| Shedule Of Equity Method Investment Summarized Balance Sheet [Line Items] | |||||
| Total current assets | $ 326,701 | $ 135,743 | |||
| Non-current assets | 2,054,782 | 1,968,702 | |||
| Total assets | 2,381,483 | 2,104,445 | |||
| Total current liabilities | 329,763 | 359,458 | |||
| Non-current liabilities | 1,869,528 | 1,943,875 | |||
| Total liabilities | 2,199,291 | 2,303,333 | |||
| Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | |||||
| Shedule Of Equity Method Investment Summarized Balance Sheet [Line Items] | |||||
| Total current assets | 33,705 | [1] | 25,075 | ||
| Non-current assets | 137,753 | [1] | 155,836 | ||
| Total assets | 171,458 | [1] | 180,911 | ||
| Total current liabilities | 13,976 | [1] | 5,392 | ||
| Non-current liabilities | 121,311 | [1] | 124,725 | ||
| Total liabilities | $ 135,287 | [1] | $ 130,117 | ||
| |||||
Equity Method Investments - Additional Information (Detail) $ / shares in Units, $ in Millions |
12 Months Ended | |||||||
|---|---|---|---|---|---|---|---|---|
|
Jul. 06, 2015
GBP (£)
|
Jan. 02, 2022
USD ($)
$ / shares
shares
|
Jan. 03, 2021
USD ($)
$ / shares
|
May 10, 2021 |
May 01, 2021 |
Dec. 29, 2019 |
Jan. 28, 2014 |
Mar. 28, 2012 |
|
| Schedule of Equity Method Investments [Line Items] | ||||||||
| Lessee, Operating Lease, Option to Extend | multiple | This lease was extended for an additional 5 years in fiscal 2021 | ||||||
| Cipura Acquisition [Member] | ||||||||
| Schedule of Equity Method Investments [Line Items] | ||||||||
| Percentage of equity interest acquired | 50.00% | |||||||
| Equity method investment, Ownership percentage | 50.00% | |||||||
| Soho House Toronto Partnership [Member] | ||||||||
| Schedule of Equity Method Investments [Line Items] | ||||||||
| Equity method investment, Ownership percentage | 50.00% | 50.00% | 50.00% | |||||
| Options exercised | shares | 0 | |||||||
| Operating leases, Term of contract | 10 years | |||||||
| Soho House Toronto Partnership [Member] | Soho House Toronto Joint Venture [Member] | ||||||||
| Schedule of Equity Method Investments [Line Items] | ||||||||
| Percentage of equity interest acquired | 50.00% | |||||||
| Soho House Toronto Partnership [Member] | Soho House Toronto Joint Venture [Member] | Toronto Partners [Member] | ||||||||
| Schedule of Equity Method Investments [Line Items] | ||||||||
| Percentage of equity interest acquired | 25.00% | |||||||
| Little Beach House Barcelona S.L [Member] | ||||||||
| Schedule of Equity Method Investments [Line Items] | ||||||||
| Additional payments to joint venture | $ | $ 8 | $ 2 | ||||||
| Little Beach House Barcelona S.L [Member] | Soho House Barcelona Joint Venture [Member] | ||||||||
| Schedule of Equity Method Investments [Line Items] | ||||||||
| Percentage of equity interest acquired | 50.00% | |||||||
| Raycliff Red LLP [Member] | ||||||||
| Schedule of Equity Method Investments [Line Items] | ||||||||
| Equity method investment, Ownership percentage | 50.00% | 50.00% | 50.00% | |||||
| Maximum limit of distribution of cash generated from other than operation allocation to unit A holder | £ | £ 500,000 | |||||||
| Raycliff Red LLP [Member] | Put Option [Member] | ||||||||
| Schedule of Equity Method Investments [Line Items] | ||||||||
| Put option strike price | $ / shares | $ 0 | $ 0 | ||||||
| Raycliff Red LLP [Member] | Hotel operations [Member] | ||||||||
| Schedule of Equity Method Investments [Line Items] | ||||||||
| Management Fee Recieved | 2.50% | |||||||
| Raycliff Red LLP [Member] | Restaurant Operations [Member] | ||||||||
| Schedule of Equity Method Investments [Line Items] | ||||||||
| Management Fee Recieved | 3.50% | |||||||
| Raycliff Red LLP [Member] | Redchurch Street London Joint Venture [Member] | ||||||||
| Schedule of Equity Method Investments [Line Items] | ||||||||
| Percentage of equity interest acquired | 50.00% | |||||||
Leases - Additional Information (Detail) $ in Thousands |
12 Months Ended | |||
|---|---|---|---|---|
|
Jan. 02, 2022
USD ($)
Number
|
Jan. 03, 2021
USD ($)
|
Dec. 29, 2019
USD ($)
|
Apr. 30, 2017
USD ($)
|
|
| Finance leases, Term of contract | 50 years | |||
| Operating leases, Option to extend | multiple | This lease was extended for an additional 5 years in fiscal 2021 | ||
| Number of units under Finance lease | Number | 2 | |||
| Cancelled Operating Leases | Number | 1 | |||
| Modifications of Existing Operating Leases | Number | 10 | |||
| Finance leases, Renewal term | 25 years | |||
| Number of units subject to operating lease | Number | 101 | |||
| New units subject to operating lease | Number | 19 | |||
| Finance lease liabilities, Non current | $ 72,582 | $ 73,558 | ||
| Lease reset period | 5 years | |||
| Operating leases, Rental expenses | $ 117,000 | 110,000 | $ 89,000 | |
| Variable lease cost | 6,000 | 3,000 | 15,000 | |
| Finance lease assets, Amortization expense | 2,000 | 2,000 | 1,000 | |
| Finance lease, Interest expense | 5,000 | $ 5,000 | $ 5,000 | |
| Operating lease liability, Payments due | $ 2,270,142 | |||
| Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Property, Plant and Equipment, Net | Property, Plant and Equipment, Net | ||
| Operating lease, Weighted average remaining lease term | 18 years | 18 years | ||
| DTLA Property [Member] | ||||
| Finance leases, Term of contract | 20 years | |||
| Finance leases, Renewal term | 10 years | |||
| Finance lease liabilities, Non current | $ 76,000 | $ 74,000 | $ 6,400 | |
| Capital leased assets | 30,000 | |||
| Leased assets contingently held by buyer | 9,000 | |||
| Additional lease commitment amount | $ 59,000 | |||
| Finance lease liability current | 0 | 0 | ||
| Capitalized interest | $ 87,000 | $ 90,000 | ||
| Minimum [Member] | ||||
| Operating leases, Term of contract | 1 year | |||
| Operating leases, Renewal term | 5 years | |||
| Maximum [Member] | ||||
| Operating leases, Term of contract | 30 years | |||
| Operating leases, Renewal term | 10 years | |||
| 2022 [Member] | ||||
| Operating lease liability, Payments due | $ 488,000 | |||
| Operating lease, Weighted average remaining lease term | 23 years | |||
| 2023 [Member] | ||||
| Operating lease liability, Payments due | $ 361,000 | |||
| Operating lease, Weighted average remaining lease term | 19 years | |||
| 2026 [Member] | ||||
| Operating lease liability, Payments due | $ 133,000 | |||
| Operating lease, Weighted average remaining lease term | 25 years | |||
Leases - Summary of The Maturity of The Company's Operating and Finance Lease Liabilities (Detail) $ in Thousands |
Jan. 02, 2022
USD ($)
|
|---|---|
| Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
| 2022 | $ 123,332 |
| 2023 | 126,342 |
| 2024 | 126,832 |
| 2025 | 129,187 |
| 2026 | 129,858 |
| Thereafter | 1,634,591 |
| Total undiscounted lease payments | 2,270,142 |
| Present value adjustment | 1,118,457 |
| Total net lease liabilities | 1,151,685 |
| 2022 | 5,237 |
| 2023 | 5,237 |
| 2024 | 5,238 |
| 2025 | 5,280 |
| 2026 | 5,199 |
| Thereafter | 201,591 |
| Total undiscounted lease payments | 227,782 |
| Present value adjustment | 155,200 |
| Total net lease liabilities | $ 72,582 |
Leases - Summary of The Supplemental Disclosure For The Statement of Cash Flows Related to Operating and Finance Leases (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Jan. 02, 2022 |
Jan. 03, 2021 |
Dec. 29, 2019 |
|
| Cash paid for amounts included in the measurement of lease liabilities: | |||
| Operating cash flows from operating leases | $ (86,523) | $ (67,412) | $ (45,318) |
| Interest payments for finance leases | (5,037) | (5,112) | (4,700) |
| Cash flows from financing activities related to leases | |||
| Principal payments for finance leases | (281) | (230) | (282) |
| Supplemental disclosures of non-cash investing and financing activities: | |||
| Operating lease assets obtained in exchange for new operating lease liabilities | $ 170,105 | $ 67,235 | $ 343,558 |
Leases - Summary of The Additional Information Related to Operating and Finance Leases (Detail) |
Jan. 02, 2022 |
Jan. 03, 2021 |
|---|---|---|
| Weighted-average remaining lease term | ||
| Finance leases | 44 years | 45 years |
| Operating leases | 18 years | 18 years |
| Weighted-average discount rate | ||
| Finance leases | 7.00% | 6.99% |
| Operating leases | 8.06% | 7.87% |
Leases - Summary of The Company's Estimated Future Undiscounted Lease Payments For Current Leases (Detail) $ in Thousands |
Jan. 02, 2022
USD ($)
|
|---|---|
| Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
| 2022 | $ 2,793 |
| 2023 | 18,737 |
| 2024 | 28,639 |
| 2025 | 33,833 |
| 2026 | 37,360 |
| Thereafter | 860,732 |
| Total undiscounted lease payments expected to be capitalized | $ 982,094 |
Leases - Cash flows related to the financing obligation for the DTLA property (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Jan. 02, 2022 |
Jan. 03, 2021 |
Dec. 29, 2019 |
|
| Cash flows from operating activities | |||
| Interest payments for finance leases | $ (5,037) | $ (5,112) | $ (4,700) |
| Cash flows from investing activities | |||
| Purchase of property and equipment | (90,812) | (128,939) | (147,955) |
| Cash flows from financing activities | |||
| Principal payments on finance leases | (281) | (230) | (282) |
| Proceeds from financing obligation | 0 | 3,652 | 23,798 |
| Supplemental disclosures of non-cash investing and financing activities: | |||
| Non-cash capitalized interest under financing obligation | 4,000 | ||
| DTLA Property [Member] | |||
| Cash flows from operating activities | |||
| Interest payments for finance leases | (5,626) | (6,626) | (1,379) |
| Cash flows from investing activities | |||
| Finance lease, capitalized interest | 0 | 0 | 3,409 |
| Purchase of property and equipment | 0 | 0 | (23,798) |
| Cash flows from financing activities | |||
| Principal payments on finance leases | (1,334) | 0 | (1,709) |
| Proceeds from financing obligation | $ 0 | $ 3,652 | $ 23,798 |
Leases - Summary of The Company's Future Undiscounted Finance Lease (Details) $ in Thousands |
Jan. 02, 2022
USD ($)
|
|---|---|
| 2022 | $ 5,237 |
| 2023 | 5,237 |
| 2024 | 5,238 |
| 2025 | 5,280 |
| 2026 | 5,199 |
| Thereafter | 201,591 |
| Total undiscounted lease payments | 227,782 |
| Present value adjustment | 155,200 |
| Total net lease liabilities | 72,582 |
| DTLA Property [Member] | |
| 2022 | 6,894 |
| 2023 | 7,031 |
| 2024 | 7,172 |
| 2025 | 7,316 |
| 2026 | 7,462 |
| Thereafter | 124,053 |
| Total undiscounted lease payments | 159,928 |
| Present value adjustment | 84,126 |
| Total net lease liabilities | $ 75,802 |
Revenue Recognition - Summary of Disaggregation of Revenue (Detail) - USD ($) $ in Thousands |
12 Months Ended | |
|---|---|---|
Jan. 01, 2023 |
Jan. 02, 2022 |
|
| Disaggregation of Revenue [Line Items] | ||
| Total future revenues | $ 27,518 | |
| Forecast [Member] | ||
| Disaggregation of Revenue [Line Items] | ||
| Total future revenues | $ 64,314 | |
| Membership And Registration Fees [Member] | ||
| Disaggregation of Revenue [Line Items] | ||
| Total future revenues | $ 27,518 | |
| Membership And Registration Fees [Member] | Forecast [Member] | ||
| Disaggregation of Revenue [Line Items] | ||
| Total future revenues | $ 64,314 | |
Revenue Recognition - Summary of Contract Receivables, Assets and Contract Liabilities (Details) - USD ($) $ in Thousands |
Jan. 02, 2022 |
Jan. 03, 2021 |
Dec. 29, 2019 |
Dec. 30, 2018 |
|---|---|---|---|---|
| Revenue Recognition [Abstract] | ||||
| Contract receivables | $ 19,338 | $ 8,367 | ||
| Contract assets | 5,553 | 8,099 | ||
| Contract liabilities | $ 113,630 | $ 85,723 | $ 93,731 | $ 76,751 |
Revenue Recognition - Additional Information (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Jan. 02, 2022 |
Jan. 03, 2021 |
Dec. 29, 2019 |
|
| Revenue Recognition [Abstract] | |||
| Revenue recognized, contract liability | $ (61,763) | $ (71,425) | $ (60,564) |
| Revenue, Remaining Performance Obligation, Percentage | 36.00% | 50.00% | 26.00% |
| Contract with Customer, Asset, after Allowance for Credit Loss, Current | $ 5,553 | $ 8,099 | |
| Contract with customer, asset, transferred to receivables | $ 8,000 | $ 11,000 | |
Revenue Recognition - Summary of Significant Changes in Contract Liabilities (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Jan. 02, 2022 |
Jan. 03, 2021 |
Dec. 29, 2019 |
|
| Revenue Recognition [Abstract] | |||
| Opening Balance | $ 85,723 | $ 93,731 | $ 76,751 |
| Revenue recognized that was included in the contract liability balance at the beginning of the period | (61,763) | (71,425) | (60,564) |
| Increases due to cash received during the period | 89,914 | 62,880 | 77,391 |
| Foreign currency translation | (244) | 537 | 153 |
| Closing Balance | $ 113,630 | $ 85,723 | $ 93,731 |
Prepaid Expenses and Other Current Assets - Prepaid Expenses And Other Current Assets (Detail) - USD ($) $ in Thousands |
Jan. 02, 2022 |
Jan. 03, 2021 |
|---|---|---|
| Prepaid Expense and Other Assets, Current [Abstract] | ||
| Amounts owed by equity method investees | $ 879 | $ 2,350 |
| Prepayments and accrued income | 26,037 | 13,789 |
| Contract assets | 5,553 | 8,099 |
| Other receivables | 24,535 | 19,325 |
| Total prepaid expenses and other current assets | $ 57,004 | $ 43,563 |
Property and Equipment, Net - Property and Equipment ,Net (Details) - USD ($) $ in Thousands |
Jan. 02, 2022 |
Jan. 03, 2021 |
|---|---|---|
| Property, Plant and Equipment [Line Items] | ||
| Property and equipment, gross | $ 1,000,721 | $ 918,537 |
| Less: Accumulated depreciation | (315,760) | (248,887) |
| Property and equipment, net | 684,961 | 669,650 |
| Land and Building [Member] | ||
| Property, Plant and Equipment [Line Items] | ||
| Property and equipment, gross | 216,540 | 216,772 |
| Leasehold Improvements [Member] | ||
| Property, Plant and Equipment [Line Items] | ||
| Property and equipment, gross | 300,821 | 280,010 |
| Fixtures and Fittings [Member] | ||
| Property, Plant and Equipment [Line Items] | ||
| Property and equipment, gross | 287,866 | 246,577 |
| Office Equipment and Other [Member] | ||
| Property, Plant and Equipment [Line Items] | ||
| Property and equipment, gross | 41,176 | 34,735 |
| Construction in Progress [Member] | ||
| Property, Plant and Equipment [Line Items] | ||
| Property and equipment, gross | 81,208 | 66,491 |
| Finance Property Lease [Member] | ||
| Property, Plant and Equipment [Line Items] | ||
| Property and equipment, gross | $ 73,110 | $ 73,952 |
Property and Equipment, Net - Additional Information (Detail) - USD ($) |
12 Months Ended | ||
|---|---|---|---|
Jan. 02, 2022 |
Jan. 03, 2021 |
Dec. 29, 2019 |
|
| Property, Plant and Equipment [Line Items] | |||
| Depreciation | $ 69,000,000 | $ 56,000,000 | $ 47,000,000 |
| Proceeds from sale of property and equipment | $ 0 | 0 | $ 47,000 |
| Maximum [Member] | |||
| Property, Plant and Equipment [Line Items] | |||
| Assets impairment loss | $ 1,000,000 | ||
Goodwill and Intangible Assets - Summary of Goodwill (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Jan. 02, 2022 |
Jan. 03, 2021 |
Dec. 29, 2019 |
|
| Goodwill [Line Items] | |||
| Beginning balance | $ 201,482 | $ 191,177 | $ 123,208 |
| Foreign currency translation adjustment | (5,891) | 10,305 | 2,480 |
| Ending balance | 214,257 | 201,482 | 191,177 |
| UK [Member] | |||
| Goodwill [Line Items] | |||
| Beginning balance | 101,602 | 97,372 | 94,428 |
| Foreign currency translation adjustment | (937) | 4,230 | 2,944 |
| Ending balance | 100,665 | 101,602 | 97,372 |
| North America [Member] | |||
| Goodwill [Line Items] | |||
| Beginning balance | 28,780 | 28,780 | 28,780 |
| Foreign currency translation adjustment | 0 | 0 | 0 |
| Ending balance | 47,446 | 28,780 | 28,780 |
| Europe and RoW [Member] | |||
| Goodwill [Line Items] | |||
| Beginning balance | 71,100 | 65,025 | 0 |
| Foreign currency translation adjustment | (4,954) | 6,075 | (464) |
| Ending balance | 66,146 | $ 71,100 | 65,025 |
| Scorpios Acquisition [Member] | |||
| Goodwill [Line Items] | |||
| Acquisition | 65,489 | ||
| Scorpios Acquisition [Member] | UK [Member] | |||
| Goodwill [Line Items] | |||
| Acquisition | 0 | ||
| Scorpios Acquisition [Member] | North America [Member] | |||
| Goodwill [Line Items] | |||
| Acquisition | 0 | ||
| Scorpios Acquisition [Member] | Europe and RoW [Member] | |||
| Goodwill [Line Items] | |||
| Acquisition | $ 65,489 | ||
| Cipura Acquisition [Member] | |||
| Goodwill [Line Items] | |||
| Acquisition | 16,623 | ||
| Cipura Acquisition [Member] | UK [Member] | |||
| Goodwill [Line Items] | |||
| Acquisition | 0 | ||
| Cipura Acquisition [Member] | North America [Member] | |||
| Goodwill [Line Items] | |||
| Acquisition | 16,623 | ||
| Cipura Acquisition [Member] | Europe and RoW [Member] | |||
| Goodwill [Line Items] | |||
| Acquisition | 0 | ||
| LINE And Saguaro Acquisition [Member] | |||
| Goodwill [Line Items] | |||
| Acquisition | 2,043 | ||
| LINE And Saguaro Acquisition [Member] | UK [Member] | |||
| Goodwill [Line Items] | |||
| Acquisition | 0 | ||
| LINE And Saguaro Acquisition [Member] | North America [Member] | |||
| Goodwill [Line Items] | |||
| Acquisition | 2,043 | ||
| LINE And Saguaro Acquisition [Member] | Europe and RoW [Member] | |||
| Goodwill [Line Items] | |||
| Acquisition | $ 0 | ||
Goodwill and Intangible Assets - Summary of Finite-lived Intangible Assets (Details) - USD ($) $ in Thousands |
12 Months Ended | |
|---|---|---|
Jan. 02, 2022 |
Jan. 03, 2021 |
|
| Acquired Finite-Lived Intangible Assets [Line Items] | ||
| Gross Carrying Value | $ 212,091 | $ 173,133 |
| Accumulated Amortization | 79,933 | 65,289 |
| Net Carrying Value | $ 132,158 | 107,844 |
| Average Amortization Period (in years) | 18 years | |
| Brand [Member] | ||
| Acquired Finite-Lived Intangible Assets [Line Items] | ||
| Gross Carrying Value | $ 114,784 | 112,566 |
| Accumulated Amortization | 45,749 | 40,864 |
| Net Carrying Value | $ 69,035 | 71,702 |
| Average Amortization Period (in years) | 24 years | |
| Membership List [Member] | ||
| Acquired Finite-Lived Intangible Assets [Line Items] | ||
| Gross Carrying Value | $ 16,144 | 16,182 |
| Accumulated Amortization | 8,131 | 7,332 |
| Net Carrying Value | $ 8,013 | 8,850 |
| Average Amortization Period (in years) | 20 years | |
| Hotel Management Agreements [Member] | ||
| Acquired Finite-Lived Intangible Assets [Line Items] | ||
| Gross Carrying Value | $ 23,600 | |
| Accumulated Amortization | 828 | |
| Net Carrying Value | $ 22,772 | |
| Average Amortization Period (in years) | 15 years | |
| Website, Internal-Use Software Development Costs, and Other [Member] | ||
| Acquired Finite-Lived Intangible Assets [Line Items] | ||
| Gross Carrying Value | $ 57,563 | 44,385 |
| Accumulated Amortization | 25,225 | 17,093 |
| Net Carrying Value | $ 32,338 | $ 27,292 |
| Average Amortization Period (in years) | 5 years |
Goodwill and Intangible Assets - Schedule of future amortization expense (Details) $ in Thousands |
Jan. 02, 2022
USD ($)
|
|---|---|
| Goodwill and Intangible Assets Disclosure [Abstract] | |
| 2022 | $ 17,709 |
| 2023 | 16,209 |
| 2024 | 13,101 |
| 2025 | 11,084 |
| 2026 | $ 8,916 |
Goodwill and Intangible Assets (Additional Information) (Details) - USD ($) |
12 Months Ended | ||
|---|---|---|---|
Jan. 02, 2022 |
Jan. 03, 2021 |
Dec. 29, 2019 |
|
| Acquired Finite-Lived Intangible Assets [Line Items] | |||
| Goodwill, Impairment Loss | $ 0 | $ 0 | $ 0 |
| Accumulated Amortization | 79,933,000 | 65,289,000 | |
| Amortization of Intangible Assets | 15,000,000 | 14,000,000 | $ 10,000,000 |
| Brand [Member] | |||
| Acquired Finite-Lived Intangible Assets [Line Items] | |||
| Accumulated Amortization | 45,749,000 | 40,864,000 | |
| Membership List [Member] | |||
| Acquired Finite-Lived Intangible Assets [Line Items] | |||
| Accumulated Amortization | 8,131,000 | 7,332,000 | |
| Hotel Management Agreements [Member] | |||
| Acquired Finite-Lived Intangible Assets [Line Items] | |||
| Accumulated Amortization | 828,000 | ||
| Website, Internal-Use Software Development Costs, and Other [Member] | |||
| Acquired Finite-Lived Intangible Assets [Line Items] | |||
| Accumulated Amortization | 25,225,000 | 17,093,000 | |
| Website Development Costs and Internal-Use Software [Member] | |||
| Acquired Finite-Lived Intangible Assets [Line Items] | |||
| Accumulated Amortization | $ 29,000,000 | $ 24,000,000 | |
Accrued Liabilities and Other Current Liabilities (Detail) - USD ($) $ in Thousands |
Jan. 02, 2022 |
Jan. 03, 2021 |
|---|---|---|
| Payables and Accruals [Abstract] | ||
| Accrued interest | $ 727 | $ 23,110 |
| Hotel deposits | 9,246 | 7,008 |
| Trade, capital and other accruals | 53,154 | 42,773 |
| Accrued Liabilities And Other Current Liabilities | $ 63,127 | $ 72,891 |
Accrued Liabilities and Other Current Liabilities - Additional Information (Detail) - USD ($) $ in Millions |
Jan. 02, 2022 |
Jan. 03, 2021 |
|---|---|---|
| Payables and Accruals [Abstract] | ||
| Social security taxes | $ 1 | $ 2 |
| Contingent liability | $ 12 |
Debt - Summary of Property Mortgage Loans, Net of Debt Issuance Costs (Detail) $ in Thousands, £ in Millions |
Jan. 02, 2022
USD ($)
|
Jan. 03, 2021
USD ($)
|
Jan. 03, 2021
GBP (£)
|
Feb. 28, 2019
USD ($)
|
||||
|---|---|---|---|---|---|---|---|---|
| Disclosure of Property Mortgage Loans, Net of Debt Issuance Costs [Line Items] | ||||||||
| Debt balances, net | $ 466,266 | $ 663,382 | ||||||
| Less: Current portion of long-term debt | (6,923) | (88,802) | ||||||
| Total long-term debt, net of current portion | 459,343 | 574,580 | ||||||
| Property mortgage loans, net | 115,122 | 114,798 | ||||||
| Related party loans, net | 21,661 | 18,206 | ||||||
| Less: Current portion of related party loans | (21,661) | (611) | ||||||
| Total related party loans, net of current portion | 0 | 17,595 | ||||||
| Related Party Loan Maturing September 2022 [Member] | ||||||||
| Disclosure of Property Mortgage Loans, Net of Debt Issuance Costs [Line Items] | ||||||||
| Related party loans, net | 21,092 | 17,595 | ||||||
| Related Party Loan Maturing December 2021 [Member] | ||||||||
| Disclosure of Property Mortgage Loans, Net of Debt Issuance Costs [Line Items] | ||||||||
| Related party loans, net | 569 | 611 | ||||||
| Revolving Credit Facility [Member] | ||||||||
| Disclosure of Property Mortgage Loans, Net of Debt Issuance Costs [Line Items] | ||||||||
| Debt balances, net | 0 | 81,615 | ||||||
| Permira Senior Facility [Member] | ||||||||
| Disclosure of Property Mortgage Loans, Net of Debt Issuance Costs [Line Items] | ||||||||
| Debt balances, net | 0 | [1] | 542,638 | [1] | £ 397 | |||
| Greek Street Loan [Member] | ||||||||
| Disclosure of Property Mortgage Loans, Net of Debt Issuance Costs [Line Items] | ||||||||
| Debt balances, net | 4,528 | 5,189 | ||||||
| Soho House Hong Kong Loan [Member] | ||||||||
| Disclosure of Property Mortgage Loans, Net of Debt Issuance Costs [Line Items] | ||||||||
| Debt balances, net | [1] | 0 | 6,500 | |||||
| Us GovernmentBacked Bank Loan [Member] | ||||||||
| Disclosure of Property Mortgage Loans, Net of Debt Issuance Costs [Line Items] | ||||||||
| Debt balances, net | 0 | 21,481 | ||||||
| Senior Notes [Member] | ||||||||
| Disclosure of Property Mortgage Loans, Net of Debt Issuance Costs [Line Items] | ||||||||
| Debt balances, net | 447,719 | 0 | ||||||
| Other Loans [Member] | ||||||||
| Disclosure of Property Mortgage Loans, Net of Debt Issuance Costs [Line Items] | ||||||||
| Debt balances, net | 14,019 | 5,959 | ||||||
| Mortgages [Member] | Term Loam [Member] | ||||||||
| Disclosure of Property Mortgage Loans, Net of Debt Issuance Costs [Line Items] | ||||||||
| Property mortgage loans, net | 54,293 | 53,965 | ||||||
| Mortgages [Member] | Subordinated Debt [Member] | ||||||||
| Disclosure of Property Mortgage Loans, Net of Debt Issuance Costs [Line Items] | ||||||||
| Property mortgage loans, net | $ 60,829 | $ 60,833 | $ 62,000 | |||||
| ||||||||
Debt - Summary of Property Mortgage Loans, Net of Debt Issuance Costs (Parenthetical) (Detail) |
1 Months Ended | 12 Months Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
Jan. 03, 2021 |
Apr. 01, 2020 |
Dec. 05, 2019 |
Dec. 31, 2017 |
Apr. 01, 2017 |
Sep. 27, 2013 |
Aug. 31, 2020 |
Jan. 02, 2022 |
Jan. 03, 2021 |
May 31, 2020 |
Feb. 28, 2019 |
|
| Short-term Debt [Line Items] | |||||||||||
| Interest rate | 4.00% | ||||||||||
| Debt Instrument, Maturity Date | Sep. 30, 2023 | ||||||||||
| Revolving Credit Facility [Member] | |||||||||||
| Short-term Debt [Line Items] | |||||||||||
| Debt Instrument, Maturity Date | Jan. 01, 2023 | Jan. 25, 2022 | Mar. 01, 2018 | ||||||||
| Permira Senior Facility [Member] | |||||||||||
| Short-term Debt [Line Items] | |||||||||||
| Debt Instrument, Maturity Date | Apr. 01, 2023 | Apr. 01, 2022 | |||||||||
| Greek Street Loan [Member] | |||||||||||
| Short-term Debt [Line Items] | |||||||||||
| Interest rate | 7.50% | 7.50% | 7.50% | ||||||||
| Debt Instrument, Maturity Date | Jan. 31, 2028 | Jan. 31, 2028 | |||||||||
| Soho House Hong Kong Loan [Member] | |||||||||||
| Short-term Debt [Line Items] | |||||||||||
| Debt Instrument, Maturity Date | Jun. 30, 2023 | Jun. 30, 2023 | |||||||||
| US Government Backed Bank Loan [Member] | |||||||||||
| Short-term Debt [Line Items] | |||||||||||
| Interest rate | 1.00% | 1.00% | 1.00% | ||||||||
| Debt Instrument, Maturity Date | Apr. 01, 2023 | Apr. 01, 2023 | |||||||||
| Senior Notes [Member] | |||||||||||
| Short-term Debt [Line Items] | |||||||||||
| Interest rate | 8.1764% | 8.1764% | 8.1764% | ||||||||
| Debt Instrument, Maturity Date | Mar. 31, 2027 | Mar. 31, 2027 | |||||||||
| Mortgages [Member] | |||||||||||
| Short-term Debt [Line Items] | |||||||||||
| Debt Instrument, Maturity Date | Sep. 29, 2022 | ||||||||||
| Mortgages [Member] | Term Loam [Member] | |||||||||||
| Short-term Debt [Line Items] | |||||||||||
| Interest rate | 5.34% | 5.34% | 5.34% | ||||||||
| Debt Instrument, Maturity Date | Feb. 06, 2024 | Feb. 06, 2024 | |||||||||
| Mortgages [Member] | Subordinated Debt [Member] | |||||||||||
| Short-term Debt [Line Items] | |||||||||||
| Interest rate | 7.25% | 7.00% | 7.25% | 7.25% | 7.25% | ||||||
| Debt Instrument, Maturity Date | Feb. 06, 2024 | Feb. 06, 2024 | |||||||||
| Unsecured Debt [Member] | |||||||||||
| Short-term Debt [Line Items] | |||||||||||
| Interest rate | 10.00% | ||||||||||
| Unsecured Debt [Member] | Debt Instrument, Redemption, Period One [Member] | |||||||||||
| Short-term Debt [Line Items] | |||||||||||
| Interest rate | 7.00% | 7.00% | 7.00% | ||||||||
| Debt Instrument, Maturity Date | Sep. 30, 2022 | Sep. 30, 2022 | |||||||||
| Unsecured Debt [Member] | Debt Instrument, Redemption, Period Two [Member] | |||||||||||
| Short-term Debt [Line Items] | |||||||||||
| Interest rate | 4.00% | 4.00% | 4.00% | ||||||||
| Debt Instrument, Maturity Date | Dec. 31, 2022 | Dec. 31, 2022 | |||||||||
| London Interbank Offered Rate (LIBOR) [Member] | Revolving Credit Facility [Member] | |||||||||||
| Short-term Debt [Line Items] | |||||||||||
| Interest rate | 3.35% | 3.35% | 3.35% | ||||||||
| London Interbank Offered Rate (LIBOR) [Member] | Permira Senior Facility [Member] | |||||||||||
| Short-term Debt [Line Items] | |||||||||||
| Interest rate | 8.00% | 8.00% | 8.00% | ||||||||
| Debt Instrument, Maturity Date | Apr. 30, 2023 | Apr. 30, 2023 | |||||||||
| London Interbank Offered Rate (LIBOR) [Member] | Soho House Hong Kong Loan [Member] | |||||||||||
| Short-term Debt [Line Items] | |||||||||||
| Interest rate | 7.00% | 7.00% | 7.00% | ||||||||
Debt - Additional Information (Details) € in Millions |
1 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Mar. 31, 2022
USD ($)
|
Jan. 02, 2022
USD ($)
|
Dec. 31, 2021
GBP (£)
|
Mar. 01, 2021
USD ($)
|
Mar. 01, 2021
GBP (£)
|
Mar. 01, 2021
EUR (€)
|
Jan. 03, 2021
USD ($)
|
May 31, 2020
shares
|
Apr. 01, 2020
USD ($)
|
Dec. 05, 2019
USD ($)
|
Jun. 01, 2018
USD ($)
|
Dec. 31, 2017
GBP (£)
|
Apr. 01, 2017
USD ($)
|
Sep. 27, 2013
USD ($)
|
Mar. 31, 2022
USD ($)
|
Aug. 31, 2020
USD ($)
|
Aug. 31, 2020
EUR (€)
|
Feb. 28, 2019
USD ($)
|
Jan. 02, 2022
USD ($)
|
Jan. 02, 2022
GBP (£)
|
Jan. 03, 2021
USD ($)
|
Dec. 29, 2019
USD ($)
|
Jan. 02, 2022
GBP (£)
|
Jan. 02, 2022
EUR (€)
|
Jun. 01, 2021
USD ($)
|
Jun. 01, 2021
GBP (£)
|
Mar. 31, 2021
USD ($)
|
Mar. 31, 2021
GBP (£)
|
Mar. 31, 2021
EUR (€)
|
Jan. 03, 2021
GBP (£)
|
Aug. 31, 2020
EUR (€)
|
Apr. 24, 2020
USD ($)
|
Apr. 01, 2020
GBP (£)
|
Dec. 29, 2019
GBP (£)
|
Dec. 05, 2019
GBP (£)
|
Jan. 01, 2018
USD ($)
|
Jan. 01, 2018
GBP (£)
|
Apr. 30, 2017 |
Apr. 01, 2017
GBP (£)
|
Feb. 16, 2016
USD ($)
|
Feb. 16, 2016
GBP (£)
|
Sep. 27, 2013
GBP (£)
|
|||||||
| Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Unamortized debt issuance costs | $ 1,000,000 | $ 1,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||
| Debt Instrument, Maturity Date | Sep. 30, 2023 | Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||
| Revolving Credit Facility Renewed Term | 4 years 6 months | |||||||||||||||||||||||||||||||||||||||||||||||
| Line of Credit Facility, Remaining Borrowing Capacity | £ | £ 14,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||
| Interest Expense | 84,382,000 | $ 77,792,000 | $ 64,108,000 | |||||||||||||||||||||||||||||||||||||||||||||
| Interest rate | 4.00% | 4.00% | ||||||||||||||||||||||||||||||||||||||||||||||
| Long-term Debt | 466,266,000 | $ 663,382,000 | 466,266,000 | 663,382,000 | ||||||||||||||||||||||||||||||||||||||||||||
| Gain (Loss) on Extinguishment of Debt, before Write off of Debt Issuance Cost | (14,126,000) | 0 | (412,000) | |||||||||||||||||||||||||||||||||||||||||||||
| Write-offs of unamortized debt issuance costs | 5,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||
| Debt Instrument, Interest Rate, Stated Percentage | 4.00% | 4.00% | ||||||||||||||||||||||||||||||||||||||||||||||
| Senior secured notes | $ 295,000,000 | € 62 | ||||||||||||||||||||||||||||||||||||||||||||||
| Transaction costs | 13,000,000 | 9,000,000 | 13,000,000 | 9,000,000 | ||||||||||||||||||||||||||||||||||||||||||||
| Property Mortgage Loans | 115,122,000 | 114,798,000 | 115,122,000 | 114,798,000 | ||||||||||||||||||||||||||||||||||||||||||||
| Consolidated adjusted EBITDA | 16,740,000 | 226,000 | 85,855,000 | |||||||||||||||||||||||||||||||||||||||||||||
| Letter of guarantee | 6,000,000 | $ 6,000,000 | £ 4,000,000 | |||||||||||||||||||||||||||||||||||||||||||||
| Revolving credit facility maturity date extend description | The Second Amendment amends the Revolving Credit Facility to extend the maturity date from January 25, 2023 to January 25, 2024. | The Second Amendment amends the Revolving Credit Facility to extend the maturity date from January 25, 2023 to January 25, 2024. | ||||||||||||||||||||||||||||||||||||||||||||||
| Exit fee | 5,000,000 | $ 5,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||
| Maximum [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Unamortized debt issuance costs | 1,000,000 | 1,000,000 | 1,000,000 | 1,000,000 | ||||||||||||||||||||||||||||||||||||||||||||
| Related Party Loans [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Instrument, Face Amount | $ 1,000,000 | € 1 | ||||||||||||||||||||||||||||||||||||||||||||||
| Soho Works Limited [Member] | Related Party Loans [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Line of credit additional borrowing capacity | 3,000,000 | 3,000,000 | 2,000,000 | |||||||||||||||||||||||||||||||||||||||||||||
| Interest Expense | 2,000,000 | 2,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||
| Line of Credit Facility, Current Borrowing Capacity | 14,000,000 | £ 11,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||
| Carrying amount of the term loan | $ 21,000,000 | $ 18,000,000 | $ 21,000,000 | $ 18,000,000 | £ 16,000,000 | £ 13,000,000 | ||||||||||||||||||||||||||||||||||||||||||
| Soho Works Limited [Member] | Related Party Loans [Member] | Maximum [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Interest Expense | 1,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||
| Soho House Hong Kong [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Proceeds from loan agreement | $ 6,500,000 | |||||||||||||||||||||||||||||||||||||||||||||||
| Fixed rate borrowings [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Weighted-average interest rate | 8.00% | 7.00% | 8.00% | 7.00% | 8.00% | 8.00% | 7.00% | |||||||||||||||||||||||||||||||||||||||||
| Floating Rate borrowings [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Weighted-average interest rate | 0.00% | 7.00% | 0.00% | 7.00% | 0.00% | 0.00% | 7.00% | |||||||||||||||||||||||||||||||||||||||||
| Paycheck Protection Program [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Line of credit facility | $ 22,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||
| Interest rate | 1.00% | |||||||||||||||||||||||||||||||||||||||||||||||
| Debt Instrument, Interest Rate, Stated Percentage | 1.00% | |||||||||||||||||||||||||||||||||||||||||||||||
| Development Funding Agreement [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Interest Expense | $ 1,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||
| Interest rate | 7.90% | 7.90% | ||||||||||||||||||||||||||||||||||||||||||||||
| Proceeds From Loans | 6,000,000 | £ 5,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||
| Debt Instrument, Interest Rate, Stated Percentage | 7.90% | 7.90% | ||||||||||||||||||||||||||||||||||||||||||||||
| Other Commitment | $ 12,000,000 | £ 9,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||
| London Interbank Offered Rate (LIBOR) [Member] | Soho House Hong Kong [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Interest rate | 7.00% | |||||||||||||||||||||||||||||||||||||||||||||||
| Debt Instrument, Interest Rate, Stated Percentage | 7.00% | |||||||||||||||||||||||||||||||||||||||||||||||
| Permira Senior Facility [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Line of credit facility | $ 345,000,000 | £ 275,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||
| Debt Instrument, Maturity Date | Apr. 01, 2023 | Apr. 01, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||
| Interest Expense | $ 13,000,000 | $ 51,000,000 | 43,000,000 | |||||||||||||||||||||||||||||||||||||||||||||
| Long-term Debt | 0 | [1] | $ 542,638,000 | [1] | 0 | [1] | 542,638,000 | [1] | £ 397,000,000 | |||||||||||||||||||||||||||||||||||||||
| Paid-in-Kind Interest | 0 | 26,000,000 | 14,000,000 | |||||||||||||||||||||||||||||||||||||||||||||
| Accrued payment-in-kind interest | 79,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||
| Gain (Loss) on Extinguishment of Debt, before Write off of Debt Issuance Cost | $ 14,000 | |||||||||||||||||||||||||||||||||||||||||||||||
| Extinguishment of Debt,prepayment penalties | $ 4,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||
| Unamortized debt issuance costs | 5,000,000 | 5,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||
| Transaction costs | $ 5,000,000 | $ 5,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||
| Debt instrument basis rate | 7.00% | |||||||||||||||||||||||||||||||||||||||||||||||
| Permira Senior Facility [Member] | GBP tranche [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Paid-in-Kind Interest | $ 505,000,000 | £ 368,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||
| Permira Senior Facility [Member] | USD tranche [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Paid-in-Kind Interest | 8,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||
| Permira Senior Facility [Member] | EUR tranche [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Paid-in-Kind Interest | $ 53,000,000 | € 45 | ||||||||||||||||||||||||||||||||||||||||||||||
| Permira Senior Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Instrument, Maturity Date | Apr. 30, 2023 | Apr. 30, 2023 | Apr. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||
| Interest rate | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | |||||||||||||||||||||||||||||||||||||||||
| Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | |||||||||||||||||||||||||||||||||||||||||
| Mortgages [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Instrument, Maturity Date | Sep. 29, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||
| Interest Expense | $ 8,000,000 | $ 8,000,000 | 7,000,000 | |||||||||||||||||||||||||||||||||||||||||||||
| Unamortized debt issuance costs | $ 2,000,000 | $ 2,000,000 | $ 2,000,000 | $ 2,000,000 | ||||||||||||||||||||||||||||||||||||||||||||
| Debt Instrument, Maturity Date, Description | February 2024 | |||||||||||||||||||||||||||||||||||||||||||||||
| Mortgages [Member] | Term Loan [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Line of credit facility | £ | £ 40,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||
| Interest rate | 5.34% | |||||||||||||||||||||||||||||||||||||||||||||||
| Debt Instrument, Interest Rate, Stated Percentage | 5.34% | |||||||||||||||||||||||||||||||||||||||||||||||
| Property Mortgage Loans | $ 55,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||
| Mortgages [Member] | Subordinated Debt [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Instrument, Maturity Date | Feb. 06, 2024 | Feb. 06, 2024 | Feb. 06, 2024 | |||||||||||||||||||||||||||||||||||||||||||||
| Interest rate | 7.25% | 7.25% | 7.00% | 7.25% | 7.25% | 7.25% | 7.25% | 7.25% | 7.25% | |||||||||||||||||||||||||||||||||||||||
| Debt Instrument, Interest Rate, Stated Percentage | 7.25% | 7.25% | 7.00% | 7.25% | 7.25% | 7.25% | 7.25% | 7.25% | 7.25% | |||||||||||||||||||||||||||||||||||||||
| Property Mortgage Loans | $ 60,829,000 | $ 60,833,000 | $ 62,000,000 | $ 60,829,000 | $ 60,833,000 | |||||||||||||||||||||||||||||||||||||||||||
| Unsecured Debt [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Interest Expense | 2,000,000 | 2,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||
| Interest rate | 10.00% | |||||||||||||||||||||||||||||||||||||||||||||||
| Debt Instrument, Interest Rate, Stated Percentage | 10.00% | |||||||||||||||||||||||||||||||||||||||||||||||
| Non-interest bearing loan | £ | £ 19,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||
| Stock Issued During Period, Shares, | shares | 2,176,424 | |||||||||||||||||||||||||||||||||||||||||||||||
| Revolving Credit Facility [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Line of credit facility | $ 72,000,000 | $ 46,000,000 | $ 31,000,000 | £ 55,000,000 | £ 35,000,000 | $ 38,000,000 | £ 30,000,000 | £ 25,000,000 | ||||||||||||||||||||||||||||||||||||||||
| Debt Instrument, Maturity Date | Jan. 01, 2023 | Jan. 25, 2022 | Mar. 01, 2018 | |||||||||||||||||||||||||||||||||||||||||||||
| Line of credit additional borrowing capacity | $ 25,000,000 | £ 20,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||
| Line of Credit Facility, Remaining Borrowing Capacity | 96,000,000 | 19,000,000 | 96,000,000 | 19,000,000 | £ 71,000,000 | |||||||||||||||||||||||||||||||||||||||||||
| Interest Expense | 3,000,000 | 4,000,000 | 3,000,000 | |||||||||||||||||||||||||||||||||||||||||||||
| Long-term Debt | $ 0 | 81,615,000 | 0 | 81,615,000 | ||||||||||||||||||||||||||||||||||||||||||||
| Unamortized debt issuance costs | $ 2,000,000 | $ 2,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||
| Consolidated adjusted EBITDA | £ 0 | $ 44,000,000 | £ 32,000,000.0 | |||||||||||||||||||||||||||||||||||||||||||||
| Revolving Credit Facility [Member] | Maximum [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Interest Expense | 1,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||
| Write-offs of unamortized debt issuance costs | $ 1,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||
| Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Interest rate | 3.35% | 3.35% | 3.35% | 3.35% | 3.35% | 3.35% | 3.35% | |||||||||||||||||||||||||||||||||||||||||
| Debt Instrument, Interest Rate, Stated Percentage | 3.35% | 3.35% | 3.35% | 3.35% | 3.35% | 3.35% | 3.35% | |||||||||||||||||||||||||||||||||||||||||
| SHG Acquisition (UK) Limited [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Line of credit facility | $ 28,000,000 | £ 18,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||
| US subsidiaries [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Line of credit facility | $ 10,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||
| Greek Street properties | ||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Line of credit facility | $ 7,000,000 | £ 5,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||
| Interest rate | 7.50% | 7.50% | ||||||||||||||||||||||||||||||||||||||||||||||
| Debt Instrument, Interest Rate, Stated Percentage | 7.50% | 7.50% | ||||||||||||||||||||||||||||||||||||||||||||||
| Compagnie de Phalsbourg [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Line of credit facility | $ 6,000,000 | $ 6,000,000 | € 5 | |||||||||||||||||||||||||||||||||||||||||||||
| Debt Instrument, Maturity Date | Jan. 30, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||
| Interest Expense | 1,000,000 | $ 1,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||
| Interest rate | 7.00% | 7.00% | ||||||||||||||||||||||||||||||||||||||||||||||
| Debt Instrument, Interest Rate, Stated Percentage | 7.00% | 7.00% | ||||||||||||||||||||||||||||||||||||||||||||||
| Optima Bank Loan [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Line of Credit Facility, Remaining Borrowing Capacity | $ 2,000,000 | € 2 | ||||||||||||||||||||||||||||||||||||||||||||||
| Interest Expense | 1,000,000 | 1,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||
| Interest rate | 4.10% | 4.10% | ||||||||||||||||||||||||||||||||||||||||||||||
| Debt Instrument, Interest Rate, Stated Percentage | 4.10% | 4.10% | ||||||||||||||||||||||||||||||||||||||||||||||
| Government of Greece [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Instrument, Maturity Date | Jul. 31, 2025 | Jul. 31, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||
| Interest rate | 3.10% | 3.10% | ||||||||||||||||||||||||||||||||||||||||||||||
| Debt Instrument, Interest Rate, Stated Percentage | 3.10% | 3.10% | ||||||||||||||||||||||||||||||||||||||||||||||
| Debt instrument , principal amount | $ 2,000,000 | € 2 | ||||||||||||||||||||||||||||||||||||||||||||||
| Government of Greece [Member] | Maximum [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Interest Expense | $ 1,000,000 | $ 1,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||
| Soho House Hong Kong Loan [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Instrument, Maturity Date | Jun. 30, 2023 | Jun. 30, 2023 | Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||
| Long-term Debt | [1] | $ 0 | $ 6,500,000 | $ 0 | $ 6,500,000 | |||||||||||||||||||||||||||||||||||||||||||
| Loan Term | 5 years | |||||||||||||||||||||||||||||||||||||||||||||||
| Soho House Hong Kong Loan [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Interest rate | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | |||||||||||||||||||||||||||||||||||||||||
| Debt Instrument, Interest Rate, Stated Percentage | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | |||||||||||||||||||||||||||||||||||||||||
| Secured Debt [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Interest Expense | $ 30,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||
| Unamortized debt issuance costs | $ 10,000,000 | 10,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||
| Secured Debt [Member] | Permira Senior Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Interest rate | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% | |||||||||||||||||||||||||||||||||||||||||||
| Debt Instrument, Interest Rate, Stated Percentage | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% | |||||||||||||||||||||||||||||||||||||||||||
| Secured Debt [Member] | Affiliated Entity [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Senior secured notes | 73,000,000 | £ 53,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||
| Secured Debt [Member] | Advised loans [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Senior secured notes | $ 73,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||
| Secured Debt [Member] | Soho House Hong Kong Loan [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Instrument, Maturity Date | Mar. 31, 2027 | |||||||||||||||||||||||||||||||||||||||||||||||
| Transaction costs | $ 12,000,000 | $ 12,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||
| Secured Debt [Member] | Soho House Hong Kong Loan [Member] | Initial Notes [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Interest rate | 2.0192% | 2.0192% | ||||||||||||||||||||||||||||||||||||||||||||||
| Debt Instrument, Interest Rate, Stated Percentage | 2.0192% | 2.0192% | ||||||||||||||||||||||||||||||||||||||||||||||
| Debt instrument basis rate | 6.1572% | |||||||||||||||||||||||||||||||||||||||||||||||
| Secured Debt [Member] | Soho House Hong Kong Loan [Member] | Additional Notes [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Interest rate | 2.125% | 2.125% | ||||||||||||||||||||||||||||||||||||||||||||||
| Debt Instrument, Interest Rate, Stated Percentage | 2.125% | 2.125% | ||||||||||||||||||||||||||||||||||||||||||||||
| Debt instrument basis rate | 6.375% | |||||||||||||||||||||||||||||||||||||||||||||||
| Secured Debt [Member] | Soho House Hong Kong Loan [Member] | Additional Notes [Member] | Maximum [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Senior secured notes | $ 100,000,000 | $ 100,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||
Debt - Summary Of Future Principal Payments For The Company's Debt, Property Mortgage Loans, and Related Party Loans (Detail) $ in Thousands |
Jan. 02, 2022
USD ($)
|
|---|---|
| Debt Instruments [Abstract] | |
| 2022 | $ 28,620 |
| 2023 | 1,050 |
| 2024 | 117,758 |
| 2025 | 8,404 |
| 2026 | 855 |
| Thereafter | 458,858 |
| Total | $ 615,545 |
Fair Value Measurements - Summary of Estimated Fair Values of the Company's Debt Instruments (Detail) - Fair Value, Inputs, Level 2 [Member] - USD ($) $ in Thousands |
Jan. 02, 2022 |
Jan. 03, 2021 |
|---|---|---|
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
| Carrying Value | $ 575,101 | $ 714,160 |
| Fair Value | 587,564 | 719,261 |
| Related party loans [Member] | ||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
| Carrying Value | 17,595 | |
| Fair Value | 17,595 | |
| Senior Secured Notes [Member] | ||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
| Carrying Value | 447,719 | |
| Fair Value | 460,182 | |
| Permira Senior Facility [Member] | ||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
| Carrying Value | 542,638 | |
| Fair Value | 547,739 | |
| Property mortgage loans [Member] | ||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
| Carrying Value | 115,122 | 114,798 |
| Fair Value | 115,122 | 114,798 |
| US government-backed bank loan [Member] | ||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
| Carrying Value | 21,481 | |
| Fair Value | 21,481 | |
| Other non-current debt [Member] | ||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
| Carrying Value | 12,260 | 17,648 |
| Fair Value | $ 12,260 | $ 17,648 |
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Thousands |
12 Months Ended | |||
|---|---|---|---|---|
Jan. 03, 2021 |
Jan. 02, 2022 |
Aug. 31, 2020 |
Apr. 01, 2017 |
|
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
| Fair value, assets and liabilities measured on recurring and nonrecurring basis | $ 0 | $ 0 | ||
| Debt issuance costs | $ 9,000 | $ 13,000 | ||
| Interest rate | 4.00% | |||
| Senior Notes [Member] | ||||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
| Interest rate | 8.1764% | 8.1764% | ||
| Permira Senior Facility [Member] | ||||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
| Debt issuance costs | $ 5,000 | |||
| Debt instrument basis rate | 7.00% | |||
| Permira Senior Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
| Interest rate | 8.00% | 8.00% | ||
| Permira Senior Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Secured Debt [Member] | ||||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
| Interest rate | 1.00% | 1.00% |
Share-Based Compensation - Additional Information (Detail) |
1 Months Ended | 12 Months Ended | ||||||
|---|---|---|---|---|---|---|---|---|
|
Dec. 31, 2021
shares
|
Jul. 31, 2021
shares
|
Aug. 31, 2020
USD ($)
shares
|
Jan. 31, 2012
£ / shares
|
Jan. 31, 2012
USD ($)
$ / shares
shares
|
Jan. 02, 2022
USD ($)
$ / shares
shares
|
Jan. 03, 2021
USD ($)
$ / shares
shares
|
Dec. 29, 2019
USD ($)
$ / shares
shares
|
|
| Share Based Compensation [Line Items] | ||||||||
| Share-based compensation expense | $ | $ 26,660,000 | $ 2,618,000 | $ 0 | |||||
| Proceeds From IPO | $ | 100,000,000 | |||||||
| Soho House Holdings Limited [Member] | ||||||||
| Share Based Compensation [Line Items] | ||||||||
| Stock shares issued during the period shares | 4,469,417 | |||||||
| Share-based compensation expense | $ | $ 0 | |||||||
| Weighted-average grant date fair value, Granted | (per share) | £ 0.21 | $ 0.33 | ||||||
| 2020 Equity And Incentive Plan [Member] | ||||||||
| Share Based Compensation [Line Items] | ||||||||
| Share-based compensation grants in period, gross | 9,978,143 | |||||||
| Incremental cost | $ | $ 5,000,000 | |||||||
| Expense for accelerated awards | $ | $ 13,000,000 | |||||||
| 2021 Equity And Incentive Plan [Member] | ||||||||
| Share Based Compensation [Line Items] | ||||||||
| Share-based compensation grants in period, gross | 12,107,333 | |||||||
| Shares Reserved for Future Awards | 9,484,456 | |||||||
| Stock Appreciation Rights (SARs) [Member] | ||||||||
| Share Based Compensation [Line Items] | ||||||||
| Share-based compensation expense | $ | $ 15,998,000 | $ 885,000 | ||||||
| Base price per share | $ / shares | $ 10.523 | |||||||
| Base price contractual term | 10 years | |||||||
| Weighted-average grant date fair value, Granted | $ / shares | $ 4.43 | $ 3.46 | $ 0 | |||||
| Stock Appreciation Rights (SARs) [Member] | 2020 Equity And Incentive Plan [Member] | ||||||||
| Share Based Compensation [Line Items] | ||||||||
| Share-based compensation grants in period, gross | 1,687,632 | 5,815,850 | ||||||
| Outstanding as of January 3, 2021 | 5,840,483 | 5,536,998 | 0 | |||||
| Share-based payment nonvested award, cost not yet recognized | $ | $ 14,000,000 | |||||||
| Share-based payment nonvested award cost not yet recognized, period for recognition | 1 year 9 months 14 days | |||||||
| Share-based compensation options accelerated outstanding number | 6,023,369 | |||||||
| Stock Appreciation Rights (SARs) [Member] | 2020 Equity And Incentive Plan [Member] | Soho House Holdings Limited [Member] | ||||||||
| Share Based Compensation [Line Items] | ||||||||
| Share-based compensation options accelerated outstanding number | 7,127,246 | |||||||
| Growth Shares [Member] | ||||||||
| Share Based Compensation [Line Items] | ||||||||
| Share-based compensation expense | $ | $ 5,246,000 | $ 1,733,000 | ||||||
| Share-based payment nonvested award, cost not yet recognized | $ | $ 4,000,000 | |||||||
| Share-based payment nonvested award cost not yet recognized, period for recognition | 1 year 7 months 20 days | |||||||
| Growth Shares [Member] | 2020 Equity And Incentive Plan [Member] | ||||||||
| Share Based Compensation [Line Items] | ||||||||
| Share-based compensation options accelerated outstanding number | 781,731 | |||||||
| Growth Shares [Member] | 2020 Equity And Incentive Plan [Member] | Soho House Holdings Limited [Member] | ||||||||
| Share Based Compensation [Line Items] | ||||||||
| Share-based compensation options accelerated outstanding number | 2,850,897 | |||||||
| Restricted Stock Units (RSUs) [Member] | ||||||||
| Share Based Compensation [Line Items] | ||||||||
| Share-based compensation expense | $ | $ 5,416,000 | $ 0 | ||||||
| Restricted Stock Units (RSUs) [Member] | Vesting Period 1 [Member] | ||||||||
| Share Based Compensation [Line Items] | ||||||||
| Vesting period | 2 years | |||||||
| Restricted Stock Units (RSUs) [Member] | Vesting Period2 [Member] | ||||||||
| Share Based Compensation [Line Items] | ||||||||
| Vesting period | 3 years | |||||||
| Restricted Stock Units (RSUs) [Member] | Executives [Member] | Vesting Period 1 [Member] | ||||||||
| Share Based Compensation [Line Items] | ||||||||
| Vesting period | 1 year | |||||||
| Restricted Stock Units (RSUs) [Member] | Executives [Member] | Vesting Period2 [Member] | ||||||||
| Share Based Compensation [Line Items] | ||||||||
| Vesting period | 2 years | |||||||
| Restricted Stock Units (RSUs) [Member] | Executives [Member] | Vesting Period3 [Member] | ||||||||
| Share Based Compensation [Line Items] | ||||||||
| Vesting period | 3 years | |||||||
| Restricted Stock Units (RSUs) [Member] | Executives [Member] | Vesting Period4 [Member] | ||||||||
| Share Based Compensation [Line Items] | ||||||||
| Vesting period | 4 years | |||||||
| Restricted Stock Units (RSUs) [Member] | Employee [Member] | ||||||||
| Share Based Compensation [Line Items] | ||||||||
| Share-based compensation grants in period, gross | 506,990 | |||||||
| Restricted Stock Units (RSUs) [Member] | 2021 Equity And Incentive Plan [Member] | ||||||||
| Share Based Compensation [Line Items] | ||||||||
| Share-based compensation grants in period, gross | 2,115,887 | |||||||
| Outstanding as of January 3, 2021 | 2,622,877 | 0 | ||||||
| Share-based payment nonvested award, cost not yet recognized | $ | $ 23,000,000 | |||||||
| Share-based payment nonvested award cost not yet recognized, period for recognition | 3 years 7 days | |||||||
| Weighted-average grant date fair value, Granted | $ / shares | $ 10.98 | |||||||
Share-Based Compensation - Summary of Share-Based Compensation (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Jan. 02, 2022 |
Jan. 03, 2021 |
Dec. 29, 2019 |
|
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
| Total share-based compensation expense | $ 26,660 | $ 2,618 | $ 0 |
| Stock Appreciation Rights (SARs) [Member] | |||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
| Total share-based compensation expense | 15,998 | 885 | |
| Growth Shares [Member] | |||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
| Total share-based compensation expense | 5,246 | 1,733 | |
| Restricted Stock Units (RSUs) [Member] | |||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
| Total share-based compensation expense | $ 5,416 | $ 0 | |
Share-Based Compensation - Assumptions Used in Applying Pricing Model (Details) - Restricted Stock [Member] - USD ($) |
12 Months Ended | |||||||
|---|---|---|---|---|---|---|---|---|
Jan. 02, 2022 |
Jan. 03, 2021 |
|||||||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
| Expected average life | 3 years 6 months | 3 years 6 months | ||||||
| Expected volatility | [1] | 45.00% | ||||||
| Expected Volatility Rate, Minimum | [1] | 50.00% | ||||||
| Expected Volatility Rate, Maximum | [1] | 55.00% | ||||||
| Risk Free Interest Rate, Minimum | [2] | 0.32% | ||||||
| Risk Free Interest Rate, Maximum | [2] | 0.43% | ||||||
| Risk-free interest rate | [2] | 0.25% | ||||||
| Expected dividend yield | [3] | $ 0.00 | $ 0.00 | |||||
| ||||||||
Share-Based Compensation - Summary of Stock Option Activity (Details) - 2020 Equity And Incentive Plan [Member] - USD ($) $ / shares in Units, $ in Thousands |
1 Months Ended | 12 Months Ended | |
|---|---|---|---|
Aug. 31, 2020 |
Jan. 02, 2022 |
Jan. 03, 2021 |
|
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
| Number of Shares, Granted | 9,978,143 | ||
| Stock Appreciation Rights (SARs) [Member] | |||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
| Number of Shares, Outstanding as of Beginning balance | 5,536,998 | 0 | |
| Number of Shares, Granted | 1,687,632 | 5,815,850 | |
| Number of Shares, Exercised | 0 | 0 | |
| Number of Shares, Forfeited | (278,852) | ||
| Number of Shares, Forfeited (pre-IPO conversion) | (97,384) | ||
| Number of Shares, Converted (IPO conversion) | (1,103,877) | ||
| Number of Shares, Forfeited (post-IPO conversion) | (182,886) | ||
| Number of Shares, Outstanding as of Ending balance | 5,840,483 | 5,536,998 | |
| Number of Shares, Exercisable as of Ending balance | 2,808,660 | 10,991 | |
| Number of Shares, Vested and expected to vest as of Ending balance | 5,840,483 | 5,536,998 | |
| Weighted Average Exercise Price Per Share, Beginning Balance | $ 10.52 | $ 0 | |
| Weighted Average Exercise Price per Share, Granted | 11.45 | 10.52 | |
| Weighted Average Exercise Price Per Share, Forfeited (pre-IPO conversion) | 10.86 | ||
| Weighted Average Exercise Price per Share, Exercised | 0 | ||
| Weighted Average Exercise Price per Share, Forfeited | 10.52 | ||
| Weighted Average Exercise Price Per Share, Forfeited (post-IPO conversion) | 12.63 | ||
| Weighted Average Exercise Price Per Share, Ending Balance | 12.72 | 10.52 | |
| Weighted Average Exercise Price Per Share, Exercisable as of Ending balance | 12.72 | 10.52 | |
| Weighted Average Exercise Price Per Share, Vested and expected to vest as of Ending balance | $ 12.72 | $ 10.52 | |
| Option Outstanding, Weighted Average Remaining Contractual Term | 8 years 7 months 9 days | 9 years 7 months 24 days | |
| Ending exercisable, Weighted Average Remaining Contractual Term | 8 years 4 months 24 days | 9 years 8 months 1 day | |
| Options vested and expected to vest, Weighted Average Remaining Contractual Term | 8 years 7 months 9 days | 9 years 7 months 24 days | |
| Option outstanding, Aggregate Intrinsic Value | $ 1,733,089 | $ 0 | |
| Ending exercisable, Aggregate Intrinsic Value | 864,610 | $ 0 | |
| Options vested and expected to vest, Aggregate Intrinsic Value | $ 1,733,089 | ||
Share-Based Compensation - Summary Of All Restricted Stock Awards (Details) - 2020 Equity And Incentive Plan [Member] - $ / shares |
1 Months Ended | 12 Months Ended | |
|---|---|---|---|
Aug. 31, 2020 |
Jan. 02, 2022 |
Jan. 03, 2021 |
|
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
| Number of Shares, Granted | 9,978,143 | ||
| Restricted Stock [Member] | |||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
| Number of Shares, Nonvested as of Beginning Balance | 2,850,897 | 0 | |
| Number of Shares, Granted | 0 | 2,850,897 | |
| Number of Shares, Converted | (2,069,166) | ||
| Number of Shares, Vested | (390,866) | 0 | |
| Number of Shares, Forfeited | 0 | 0 | |
| Number of Shares, Nonvested as of, Ending Balance | 390,865 | 2,850,897 | |
| Vested and not yet released as of Ending balance | 390,866 | 0 | |
| Number of Shares, Outstanding as of Ending balance | 781,731 | 2,850,897 | |
| Weighted Average Grant Date Fair Value, Nonvested as of as of Beginning Balance | $ 3.46 | $ 0 | |
| Weighted-average grant date fair value, Granted | 0 | 3.46 | |
| Weighted Average Grant Date Fair Value, Vested | 13.28 | 0 | |
| Weighted Average Grant Date Fair Value, Forfeited | 0 | ||
| Weighted Average Grant Date Fair Value, Nonvested as of , Ending Balance | 13.28 | 3.46 | |
| Weighted Average Grant Date Fair Value, Vested and not yet released | 13.28 | ||
| Weighted Average Exercise Price Per Share, Ending Balance | $ 13.28 | $ 3.46 | |
Share-Based Compensations - Summary Of All RSUs Granted (Details) - Restricted Stock Units (RSUs) [Member] - 2021 Equity And Incentive Plan [Member] |
12 Months Ended |
|---|---|
|
Jan. 02, 2022
$ / shares
shares
| |
| Share Based Compensation [Line Items] | |
| Number of Shares, Outstanding as of Beginning balance | 0 |
| Granted | 2,622,877 |
| Vested | 0 |
| Forfeited | 0 |
| Number of Shares, Nonvested as of Ending Balance | 2,622,877 |
| Vested and not yet released as of Ending balance | 0 |
| Number of Shares, Outstanding as of Ending balance | 2,622,877 |
| Weighted Average Grant Date Fair Value, Nonvested as of as of Beginning Balance | $ / shares | $ 0 |
| Weighted-average grant date fair value, Granted | $ / shares | 10.98 |
| Weighted Average Grant Date Fair Value, Vested | $ / shares | 0 |
| Weighted Average Grant Date Fair Value, Forfeited | $ / shares | 0 |
| Weighted Average Grant Date Fair Value, Nonvested as of , Ending Balance | $ / shares | 10.98 |
| Weighted Average Exercise Price Per Share, Ending Balance | $ / shares | $ 10.98 |
Redeemable Preferred Shares - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||
|---|---|---|---|---|---|---|---|---|---|
Oct. 03, 2021 |
Jul. 04, 2021 |
Mar. 31, 2021 |
Jan. 02, 2022 |
Jan. 02, 2022 |
Jan. 03, 2021 |
Dec. 29, 2019 |
Jul. 19, 2021 |
May 31, 2016 |
|
| Redeemable Preferred Shares [Line Items] | |||||||||
| Temporary equity, accretion to redemption value | $ 5,000 | ||||||||
| Redemption of SHHL redeemable preferred shares | $ (19,899) | $ 0 | $ (15,000) | ||||||
| Dividends paid on SHHL redeemable preferred shares | 0 | 0 | 364 | ||||||
| Preferred shares deemed dividend upon conversion | 51,469 | $ 0 | $ 0 | ||||||
| Seven Percent Redeemable Preferred Stock [Member] | |||||||||
| Redeemable Preferred Shares [Line Items] | |||||||||
| Temporary equity shares issued | 10,000,000 | ||||||||
| Temporary equity shares percentage | 7.00% | ||||||||
| Temporary equity, par value | $ 10,000 | ||||||||
| Temporary equity value unrelated parties | $ 15,000 | ||||||||
| Temporary equity, foreign currency translation adjustments | $ 1,000 | ||||||||
| Redeemed preferred shares | $ 20,000 | ||||||||
| Senior Convertible Preference Shares [Member] | |||||||||
| Redeemable Preferred Shares [Line Items] | |||||||||
| Temporary equity shares issued | 12,970,766 | ||||||||
| Redemption of SHHL redeemable preferred shares | 4,000 | ||||||||
| Temporary equity liquidation preference | $ 175,000 | ||||||||
| Temporary equity liquidation preference per share | $ 13.49 | ||||||||
| Proceeds from issuance of redeemable preferred stock | $ 162,000 | ||||||||
| Payments of stock issuance costs | $ 13,000 | ||||||||
| Convertible preferred stock, shares issued upon conversion | 15,526,619 | ||||||||
| Non cash preferred stock dividend rate | 8.00% | ||||||||
| Preferred shares deemed dividend upon conversion | $ 51,000 | ||||||||
SHHL C Ordinary Shares - Additional Information (Detail) - USD ($) $ in Millions |
1 Months Ended | 12 Months Ended | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 19, 2021 |
Dec. 08, 2020 |
May 19, 2020 |
Nov. 04, 2019 |
Aug. 23, 2019 |
Mar. 31, 2021 |
May 31, 2020 |
Jan. 02, 2022 |
Jan. 03, 2021 |
Dec. 29, 2019 |
Nov. 30, 2019 |
Aug. 31, 2019 |
|
| Temporary Equity [Line Items] | ||||||||||||
| Temporary equity interest rate percentage | 5.00% | |||||||||||
| Proceeds from redeemable common stock net | $ 63 | |||||||||||
| Incurred share issuance costs | 5 | |||||||||||
| SHHL [Member] | ||||||||||||
| Temporary Equity [Line Items] | ||||||||||||
| Common stock shares outstanding | 18,146,543 | |||||||||||
| Redeemable Class C Common Stock [Member] | ||||||||||||
| Temporary Equity [Line Items] | ||||||||||||
| Temporary Equity, Shares outstanding | 0 | 16,435,997 | ||||||||||
| Temporary Equity, Shares issued | 0 | 16,435,997 | ||||||||||
| Redeemable Class C Common Stock [Member] | SHHL [Member] | ||||||||||||
| Temporary Equity [Line Items] | ||||||||||||
| Temporary Equity, Shares outstanding | 21,187,494 | 16,435,997 | 6,933,004 | |||||||||
| Temporary Equity, Shares issued | 21,187,494 | 16,435,997 | 6,933,004 | 6,933,004 | 6,933,004 | |||||||
| Gross proceeds from redeemable common stock | $ 20 | $ 45 | ||||||||||
| Temporary equity stock issued during the period shares | 2,181,507 | 4,276,347 | 9,502,993 | |||||||||
| Reclassification of temporary equity shares into permanent equity | 1,710,546 | |||||||||||
| Redeemable Class C Common Stock [Member] | SHHL [Member] | Investor Option Agreement [Member] | ||||||||||||
| Temporary Equity [Line Items] | ||||||||||||
| Gross proceeds from redeemable common stock | $ 100 | $ 50 | ||||||||||
| Payment of discount on redeemable common stock | $ 6 | $ 3 | ||||||||||
| Temporary equity stock issued during the period shares | 9,502,993 | 4,751,497 | ||||||||||
| Proceeds from redeemable common stock net | $ 94 | $ 47 | ||||||||||
| Incurred share issuance costs | $ 1 | |||||||||||
| Common Class C [Member] | SHHL [Member] | ||||||||||||
| Temporary Equity [Line Items] | ||||||||||||
| Common stock shares outstanding | 1,710,546 | |||||||||||
| Common Class A [Member] | ||||||||||||
| Temporary Equity [Line Items] | ||||||||||||
| Common stock shares outstanding | 61,029,730 | 0 | ||||||||||
| Temporary equity shares converted into permanent equity | 6,592,023 | |||||||||||
| Common Class A [Member] | SHHL [Member] | ||||||||||||
| Temporary Equity [Line Items] | ||||||||||||
| Gross proceeds from redeemable common stock | $ 5 | |||||||||||
| Temporary equity stock issued during the period shares | 475,150 | |||||||||||
| Common Class B [Member] | ||||||||||||
| Temporary Equity [Line Items] | ||||||||||||
| Common stock shares outstanding | 141,500,385 | 0 | ||||||||||
| Temporary equity shares converted into permanent equity | 10,871,215 | |||||||||||
Loss Per Share and Shareholders' Equity (Deficit) - Schedule of Changes in each Class of Redeemable Preferred Shares, Ordinary Shares and Common Stock (Details) - USD ($) |
12 Months Ended | ||
|---|---|---|---|
Jan. 02, 2022 |
Jan. 03, 2021 |
Dec. 29, 2019 |
|
| Redemption of SHHL redeemable preferred shares | $ (19,899,000) | $ 0 | $ (15,000,000) |
| Soho House Holdings Limited SHHL [Member] | Redeemable Preferred Share [Member] | |||
| Beginning Balance, Shares | 10,000,000 | 10,000,000 | 10,000,100 |
| Redemption of SHHL redeemable preferred shares | (100) | ||
| Redemption of SHHL redeemable preferred shares | $ (15,000,000) | ||
| Issuance of senior convertible preference shares (Note 15), Shares | 12,970,766 | ||
| Redemption of the May 2016 preferred shares | (10,000,000) | ||
| Conversion of senior convertible preference shares into Class A common stock (Note 1), Shares | (12,970,766) | ||
| Ending Balance, Shares | 0 | 10,000,000 | 10,000,000 |
| Soho House Holdings Limited SHHL [Member] | Redeemable Class C Common Stock [Member] | |||
| Beginning Balance, Shares | 16,435,997 | 6,933,004 | 0 |
| Issuance of SHHL redeemable C ordinary shares (Note 16) | 4,751,497 | 9,502,993 | 6,191,200 |
| Conversion of SHHL A ordinary shares into SHHL C ordinary shares | 475,150 | ||
| Redeemable C ordinary shares issuance costs | $ 266,654,000 | ||
| Effect of the Reorganization Transactions (Note 1), Shares | (21,187,494) | ||
| Ending Balance, Shares | 0 | 16,435,997 | 6,933,004 |
| Soho House Holdings Limited SHHL [Member] | Common Class A [Member] | |||
| Beginning Balance, Shares | 166,575,991 | 166,110,113 | 166,585,263 |
| Conversion of SHHL A ordinary shares into SHHL C ordinary shares | (1,710,546) | (475,150) | |
| Conversion of related party loan to SHHL A ordinary shares | 2,176,424 | ||
| Effect of the Reorganization Transactions (Note 1), Shares | (166,575,991) | ||
| Ending Balance, Shares | 0 | 166,575,991 | 166,110,113 |
| Soho House Holdings Limited SHHL [Member] | Common Class B [Member] | |||
| Beginning Balance, Shares | 4,469,417 | 4,469,417 | 4,469,417 |
| Effect of the Reorganization Transactions (Note 1), Shares | (4,469,417) | ||
| Ending Balance, Shares | 0 | 4,469,417 | 4,469,417 |
| Soho House Holdings Limited SHHL [Member] | Common Class C [Member] | |||
| Beginning Balance, Shares | 1,710,546 | 0 | 0 |
| Conversion of SHHL A ordinary shares into SHHL C ordinary shares | 1,710,546 | ||
| Effect of the Reorganization Transactions (Note 1), Shares | (1,710,546) | ||
| Ending Balance, Shares | 0 | 1,710,546 | 0 |
| Soho House Holdings Limited SHHL [Member] | Common Class C Two [Member] | |||
| Beginning Balance, Shares | 3,326,048 | 3,326,048 | 0 |
| Issuance of common shares | $ 3,326,048 | ||
| SHHL C2 ordinary shares issued in connection with the Cipura Acquisition (Note 3), Shares | 644,828 | ||
| SHHL C2 ordinary shares issued in connection with the Mandolin Acquisition (Note 3), Shares | 92,647 | ||
| SHHL C2 ordinary shares issued in connection with the purchase of Soho Works North America noncontrolling interests (Note 3), Shares | 3,984,883 | ||
| SHHL C2 ordinary shares issued in connection with the purchase of Scorpios noncontrolling interests (Note 3), Shares | 572,410 | ||
| SHHL C2 ordinary shares issued in connection with the Line and Saguaro Acquisition (Note 3), Shares | 1,900,599 | ||
| Effect of the Reorganization Transactions (Note 1), Shares | (10,521,415) | ||
| Ending Balance, Shares | 0 | 3,326,048 | 3,326,048 |
| Soho House Holdings Limited SHHL [Member] | Common Class D [Member] | |||
| Beginning Balance, Shares | 2,850,897 | 0 | 0 |
| Issuance of SHHL Growth Shares under the 2020 Plan | 2,850,897 | ||
| Effect of the Reorganization Transactions (Note 1), Shares | (2,850,897) | ||
| Ending Balance, Shares | 0 | 2,850,897 | 0 |
| MCG Common Stock [Member] | Common Class A [Member] | |||
| Beginning Balance, Shares | 0 | 0 | 0 |
| Effect of the Reorganization Transactions (Note 1), Shares | 14,935,193 | ||
| Issuance of common stock in connection with initial public offering | $ 30,567,918 | ||
| Conversion of senior convertible preference shares into Class A common stock (Note 1), Shares | 15,526,619 | ||
| Ending Balance, Shares | 61,029,730 | 0 | 0 |
| MCG Common Stock [Member] | Common Class B [Member] | |||
| Beginning Balance, Shares | 0 | 0 | 0 |
| Effect of the Reorganization Transactions (Note 1), Shares | 141,500,385 | ||
| Ending Balance, Shares | 141,500,385 | 0 | 0 |
Loss Per Share and Shareholders' Equity (Deficit) - Schedule of Reconciliation of the Loss and Number of Shares Basic and Diluted Loss Per Shares (Detail) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Jan. 02, 2022 |
Jan. 03, 2021 |
Dec. 29, 2019 |
|
| Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||
| Net loss attributable to Membership Collective Group Inc. | $ (265,395) | $ (228,461) | $ (127,742) |
| Cumulative May 2016 preferred shares undeclared dividends | (4,778) | (4,250) | (3,312) |
| Preferred shares declared dividends | 0 | 0 | (364) |
| Incremental accretion of May 2016 preferred shares to redemption value | (1,085) | 0 | 0 |
| Foreign currency remeasurement of redeemable preferred shares | 666 | 0 | 0 |
| Non-cash dividends on the Senior Preference Shares | (4,335) | 0 | 0 |
| Preferred shares deemed dividend upon conversion | $ (51,469) | $ 0 | $ 0 |
| Loss per share-basic and diluted | $ (1.88) | $ (1.64) | $ (1.01) |
| Common Class A [Member] | |||
| Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||
| Net loss adjusted for common stockholders | $ (326,396) | $ (232,711) | $ (131,418) |
| Weighted average shares outstanding for basic and diluted loss per share | 173,691,203 | 141,896,349 | 130,491,721 |
| Common Class B [Member] | |||
| Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||
| Net loss adjusted for common stockholders | $ (326,396) | $ (232,711) | $ (131,418) |
| Weighted average shares outstanding for basic and diluted loss per share | 173,691,203 | 141,896,349 | 130,491,721 |
Loss Per Share and Shareholders' Equity (Deficit) - Additional Information (Detail) € / shares in Units, $ / shares in Units, € in Millions, $ in Millions |
1 Months Ended | 12 Months Ended | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Jan. 03, 2021
USD ($)
|
Jan. 03, 2021
EUR (€)
€ / shares
shares
|
Nov. 04, 2019
shares
|
Aug. 23, 2019
USD ($)
shares
|
Dec. 31, 2020
shares
|
May 31, 2020
€ / shares
shares
|
Dec. 31, 2019
USD ($)
|
Jan. 31, 2012
€ / shares
shares
|
Jan. 02, 2022
USD ($)
shares
|
Jan. 02, 2022
£ / shares
shares
|
Jan. 02, 2022
$ / shares
shares
|
Jan. 02, 2022
€ / shares
shares
|
Mar. 31, 2021
shares
|
Dec. 31, 2019
€ / shares
shares
|
Dec. 29, 2019
shares
|
Nov. 30, 2019
€ / shares
shares
|
Aug. 31, 2019
€ / shares
shares
|
|
| Class of Stock [Line Items] | |||||||||||||||||
| Vested shares , annual installments period | 5 years | ||||||||||||||||
| Incurred share issuance costs | $ | $ 5 | ||||||||||||||||
| Conversion ratio from temporary equity to permanent equity | 1 | ||||||||||||||||
| Common stock shares convertible from one class to another conversion ratio | 1.00% | ||||||||||||||||
| SHHL [Member] | |||||||||||||||||
| Class of Stock [Line Items] | |||||||||||||||||
| Common stock shares outstanding | 18,146,543 | ||||||||||||||||
| Common Class A [Member] | |||||||||||||||||
| Class of Stock [Line Items] | |||||||||||||||||
| Common stock par or stated value per share | $ / shares | $ 0.01 | ||||||||||||||||
| Common stock shares outstanding | 0 | 61,029,730 | 61,029,730 | 61,029,730 | |||||||||||||
| Common stock shares issued | 0 | 61,029,730 | 61,029,730 | 61,029,730 | |||||||||||||
| Conversion of non redeemable common stock shares from one class into another | 14,935,193 | ||||||||||||||||
| Common Class A [Member] | SHHL [Member] | |||||||||||||||||
| Class of Stock [Line Items] | |||||||||||||||||
| Temporary equity stock issued during the period shares | 475,150 | ||||||||||||||||
| Conversion of non redeemable common stock shares from one class into another | 1,710,546 | ||||||||||||||||
| Class A Class C And Class C Two Common Stock [Member] | |||||||||||||||||
| Class of Stock [Line Items] | |||||||||||||||||
| Common stock par or stated value per share | € / shares | € 1 | ||||||||||||||||
| Income to be allocated to particular classes of stockholders | $ 228 | € 167 | |||||||||||||||
| Redeemable Class C Common Stock [Member] | |||||||||||||||||
| Class of Stock [Line Items] | |||||||||||||||||
| Common stock shares voting rights | one vote | ||||||||||||||||
| Temporary Equity, Par value | £ / shares | £ 1 | ||||||||||||||||
| Temporary equity shares issued | 16,435,997 | 0 | 0 | 0 | |||||||||||||
| Redeemable Class C Common Stock [Member] | SHHL [Member] | |||||||||||||||||
| Class of Stock [Line Items] | |||||||||||||||||
| Temporary Equity, Par value | € / shares | € 1 | € 1 | € 1 | ||||||||||||||
| Temporary equity shares issued | 16,435,997 | 21,187,494 | 6,933,004 | 6,933,004 | 6,933,004 | ||||||||||||
| Temporary equity stock issued during the period shares | 2,181,507 | 4,276,347 | 9,502,993 | ||||||||||||||
| Class C Two Common Stock [Member] | |||||||||||||||||
| Class of Stock [Line Items] | |||||||||||||||||
| Common stock par or stated value per share | € / shares | € 1 | ||||||||||||||||
| Incurred share issuance costs | $ | $ 1 | ||||||||||||||||
| Common stock shares outstanding | 3,326,048 | ||||||||||||||||
| Class D Common Stock [Member] | |||||||||||||||||
| Class of Stock [Line Items] | |||||||||||||||||
| Common stock par or stated value per share | € / shares | € 0.0001 | ||||||||||||||||
| Common stock shares outstanding | 2,850,897 | ||||||||||||||||
| Common stock shares issued | 2,850,897 | ||||||||||||||||
| Class A Class B Class C And Class C Two Common Stock [Member] | |||||||||||||||||
| Class of Stock [Line Items] | |||||||||||||||||
| Income to be allocated to particular classes of stockholders | $ | $ 1,800 | ||||||||||||||||
| Common Class B [Member] | |||||||||||||||||
| Class of Stock [Line Items] | |||||||||||||||||
| Common stock par or stated value per share | $ / shares | $ 0.01 | ||||||||||||||||
| Common stock shares outstanding | 0 | 141,500,385 | 141,500,385 | 141,500,385 | |||||||||||||
| Common stock shares issued | 0 | 141,500,385 | 141,500,385 | 141,500,385 | |||||||||||||
| Conversion of non redeemable common stock shares from one class into another | 141,500,385 | ||||||||||||||||
| Common Class B [Member] | SHHL [Member] | |||||||||||||||||
| Class of Stock [Line Items] | |||||||||||||||||
| Common stock par or stated value per share | € / shares | € 0.0001 | ||||||||||||||||
| Number of voting right | 0 | ||||||||||||||||
| Stock shares issued during the period shares | 4,469,417 | ||||||||||||||||
| Common Class C [Member] | SHHL [Member] | |||||||||||||||||
| Class of Stock [Line Items] | |||||||||||||||||
| Common stock shares outstanding | 1,710,546 | ||||||||||||||||
| Conversion of non redeemable common stock shares from one class into another | 1,710,546 | ||||||||||||||||
| Common Class A Redeemable C Ordinary Shares [Member] | |||||||||||||||||
| Class of Stock [Line Items] | |||||||||||||||||
| Common stock shares voting rights | one vote | ||||||||||||||||
| Non Exceutive Director [Member] | Redeemable Class C Common Stock [Member] | |||||||||||||||||
| Class of Stock [Line Items] | |||||||||||||||||
| Number of directors who can be appointed | 1 | 1 | 1 | ||||||||||||||
| Non Voting Observer Director [Member] | Redeemable Class C Common Stock [Member] | |||||||||||||||||
| Class of Stock [Line Items] | |||||||||||||||||
| Number of directors who can be appointed | 1 | 1 | 1 | ||||||||||||||
Commitments and Contingencies - Additional Information (Detail) € in Millions, £ in Millions, $ in Millions, $ in Millions |
1 Months Ended | 12 Months Ended | |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Mar. 21, 2019
USD ($)
|
Mar. 21, 2019
EUR (€)
|
Nov. 18, 2016
USD ($)
|
Nov. 18, 2016
EUR (€)
|
Feb. 28, 2018
USD ($)
|
Feb. 28, 2018
HKD ($)
|
Jan. 31, 2014
USD ($)
|
Jan. 31, 2014
EUR (€)
|
Jan. 02, 2022
USD ($)
|
Jan. 03, 2021
USD ($)
|
Jan. 02, 2022
GBP (£)
|
Jan. 02, 2022
EUR (€)
|
Jul. 31, 2018
USD ($)
|
Jul. 31, 2018
GBP (£)
|
Dec. 07, 2017
USD ($)
Partners
|
May 31, 2017
USD ($)
|
May 31, 2017
GBP (£)
|
Jan. 31, 2017
USD ($)
|
Jan. 31, 2017
EUR (€)
|
May 31, 2016
USD ($)
|
May 31, 2016
GBP (£)
|
Aug. 31, 2014
USD ($)
|
Aug. 31, 2014
GBP (£)
|
|
| Other Commitments [Line Items] | |||||||||||||||||||||||
| Loan agreement drew down | $ 6.5 | ||||||||||||||||||||||
| Number of Partners | Partners | 2 | ||||||||||||||||||||||
| Long-term Line of Credit, Noncurrent | $ 33.5 | ||||||||||||||||||||||
| Long-term purchase commitment, amount | $ 45.0 | € 39.5 | |||||||||||||||||||||
| Long term purchase commitment redeem | $ 20.0 | ||||||||||||||||||||||
| Guarantor Obligations, Maximum Exposure | $ 5.0 | € 4.4 | |||||||||||||||||||||
| VIE to Banca March [Member] | |||||||||||||||||||||||
| Other Commitments [Line Items] | |||||||||||||||||||||||
| Long-term purchase commitment, amount | $ 19.0 | € 18.0 | |||||||||||||||||||||
| Raycliff Red LLP [Member] | |||||||||||||||||||||||
| Other Commitments [Line Items] | |||||||||||||||||||||||
| Long-term Construction Loan | 29.0 | £ 21.0 | |||||||||||||||||||||
| Orca Finance and Invest Ltd to Mirador Barcel S.L [Member] | |||||||||||||||||||||||
| Other Commitments [Line Items] | |||||||||||||||||||||||
| Long term purchase commitment redeem | € | € 18.0 | ||||||||||||||||||||||
| HK [Member] | |||||||||||||||||||||||
| Other Commitments [Line Items] | |||||||||||||||||||||||
| Letter of guarantee first anniversary annual reduction | 4.0 | $ 32.4 | |||||||||||||||||||||
| Letter of guarantee second anniversary annual reduction | 3.0 | 24.3 | |||||||||||||||||||||
| Soho House [Member] | Membership Credit To Be Given To Members [Member] | |||||||||||||||||||||||
| Other Commitments [Line Items] | |||||||||||||||||||||||
| Loss contingency accrual | $ 12.0 | ||||||||||||||||||||||
| Expense Related To Expiration Of Credits | 4.0 | ||||||||||||||||||||||
| Soho House [Member] | Other Expense [Member] | Membership Credit To Be Given To Members [Member] | |||||||||||||||||||||||
| Other Commitments [Line Items] | |||||||||||||||||||||||
| Marketing expenses | 8.0 | 12.0 | |||||||||||||||||||||
| Soho House [Member] | Austin [Member] | Maximum [Member] | Expenditure To Be Incurred On Construction And Site Development [Member] | |||||||||||||||||||||||
| Other Commitments [Line Items] | |||||||||||||||||||||||
| Capital expenditure commitments contracted for but not yet incurred | $ 1.0 | ||||||||||||||||||||||
| Soho House [Member] | HK [Member] | |||||||||||||||||||||||
| Other Commitments [Line Items] | |||||||||||||||||||||||
| Letter of guarantee issued for cash | $ 5.0 | $ 40.6 | |||||||||||||||||||||
| Soho House [Member] | HK [Member] | Expenditure To Be Incurred On Construction And Site Development [Member] | |||||||||||||||||||||||
| Other Commitments [Line Items] | |||||||||||||||||||||||
| Capital expenditure commitments contracted for but not yet incurred | $ 1.0 | ||||||||||||||||||||||
| Soho House [Member] | UK [Member] | Raycliff Red LLP [Member] | |||||||||||||||||||||||
| Other Commitments [Line Items] | |||||||||||||||||||||||
| Loans Payable to Bank, Noncurrent | $ 0.5 | £ 0.4 | $ 26.0 | £ 20.0 | $ 15.0 | £ 10.0 | $ 7.0 | £ 4.0 | |||||||||||||||
| Soho House [Member] | Barcelona [Member] | |||||||||||||||||||||||
| Other Commitments [Line Items] | |||||||||||||||||||||||
| Long-term Line of Credit, Noncurrent | $ 10.0 | € 10.0 | |||||||||||||||||||||
| Long-term purchase commitment, amount | $ 14.0 | € 10.0 | |||||||||||||||||||||
| Loan in cash | 5.0 | 5.0 | |||||||||||||||||||||
| Convertible Debt, Noncurrent | $ 5.0 | € 5.0 | |||||||||||||||||||||
Defined Contribution Plan (Additional Information) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Jan. 02, 2022 |
Jan. 03, 2021 |
Dec. 29, 2019 |
|
| Retirement Benefits [Abstract] | |||
| Plan charges | $ 9,000 | $ 11,000 | $ 10,000 |
| Outstanding or prepaid contributions in pension plan | $ 0 | $ 0 | $ 0 |
Income Taxes - Schedule of components of loss before income taxes (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Jan. 02, 2022 |
Jan. 03, 2021 |
Dec. 29, 2019 |
|
| Income Tax Disclosure [Abstract] | |||
| Domestic | $ (45,312) | $ (137,120) | $ (87,880) |
| Foreign | (222,508) | (98,931) | (35,652) |
| Loss before income taxes | $ (267,820) | $ (236,051) | $ (123,532) |
Income Taxes - Schedule of provision for income taxes (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Jan. 02, 2022 |
Jan. 03, 2021 |
Dec. 29, 2019 |
|
| Current tax expense | |||
| Domestic | $ 0 | $ 7 | $ 135 |
| Foreign | 1,167 | 558 | 4,469 |
| Total current | 1,167 | 565 | 4,604 |
| Deferred tax expense (benefit) | |||
| Domestic | (891) | 0 | 0 |
| Foreign | (618) | (1,341) | (136) |
| Total deferred | (273) | (1,341) | (136) |
| Total income tax expense (benefit) | $ 894 | $ (776) | $ 4,468 |
| Effective income tax rate | 0.00% | 0.00% | (4.00%) |
Income Taxes - Schedule of effective income tax rate reconciliation (Details) |
12 Months Ended | ||
|---|---|---|---|
Jan. 02, 2022 |
Jan. 03, 2021 |
Dec. 29, 2019 |
|
| Income Tax Disclosure [Abstract] | |||
| Benefit at US (Fiscal 2021) and UK (Fiscal 2020 and Fiscal 2019) UK statutory income tax rate | 21.00% | 19.00% | 19.00% |
| Permanent differences | (3.00%) | 0.00% | 0.00% |
| Non deductible expenses | (3.00%) | 0.00% | (3.00%) |
| Change in unrecognized tax benefits | 0.00% | 0.00% | (2.00%) |
| Movement in valuation allowances | (15.00%) | (24.00%) | (21.00%) |
| Change in valuation allowance due to remeasurement of deferred taxes | (7.00%) | 0.00% | 0.00% |
| Differences in tax rates in other jurisdictions | 0.00% | 1.00% | (1.00%) |
| Change in tax rates | 7.00% | 1.00% | 0.00% |
| Other | 0.00% | 3.00% | 4.00% |
| Effective income tax rate | 0.00% | 0.00% | (4.00%) |
Income Taxes - Schedule of deferred tax assets and liabilities (Details) - USD ($) $ in Thousands |
Jan. 02, 2022 |
Jan. 03, 2021 |
|---|---|---|
| Deferred tax assets | ||
| Property and equipment, net | $ 24,591 | $ 16,578 |
| Intangible assets | 0 | 1,492 |
| Other short term differences | 17,483 | 6,748 |
| Lease liability | 229,350 | 112,460 |
| Interest limitation carryforward | 73,422 | 47,783 |
| Tax losses | 118,890 | 88,178 |
| Total gross deferred tax assets | 463,736 | 273,239 |
| Valuation Allowance | (174,265) | (131,426) |
| Total deferred tax assets | 289,471 | 141,813 |
| Deferred tax liabilities | ||
| Property and equipment, net | (38,373) | (328) |
| Intangible assets | (17,422) | (12,077) |
| Right of use asset | (232,822) | (114,152) |
| Other | (2,264) | (452) |
| Investment in partnership | 0 | (15,726) |
| Total gross deferred tax liabilities | (290,881) | (142,735) |
| Total net deferred tax liabilities | (1,410) | (922) |
| Non-current deferred tax assets | 446 | 377 |
| Non-current deferred tax liabilities | (1,856) | (1,299) |
| Deferred Tax Assets, Net, Total | $ (1,410) | $ (922) |
Income Taxes - Additional Information (Detail) - USD ($) |
12 Months Ended | ||
|---|---|---|---|
Jan. 02, 2022 |
Jan. 03, 2021 |
Dec. 29, 2019 |
|
| Income Tax Contingency [Line Items] | |||
| Tax losses | $ 118,890,000 | $ 88,178,000 | |
| Interest limitation carryforward | 73,422,000 | 47,783,000 | |
| Valuation Allowance | 174,265,000 | 131,426,000 | |
| Reductions due to expiry of state of limitations | 3,822,000 | 1,356,000 | $ 1,234,000 |
| Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | $ 15,000,000 | $ 0 | $ 0 |
| Effective tax rate | 0.00% | 0.00% | (4.00%) |
| Effective Income tax rate reconciliation, foreign income tax rate differential, percent | 0.00% | 1.00% | (1.00%) |
| Change in tax rate | $ 3,566,000 | $ 1,478,000 | $ 0 |
| Deferred Tax Assets, Increase in Valuation Allowance | 41,000,000 | ||
| Deferred tax assets, effect of change in foreign tax rates | 17,000,000 | ||
| Deferred Tax Assets, Write-Off | 16,000,000 | ||
| Deferred Tax Assets, Foreign exchange translation impact | 1,000,000 | ||
| Increase decrease in net deferred tax assets, before valuation allowance | 43,000,000 | ||
| US [Member] | |||
| Income Tax Contingency [Line Items] | |||
| Tax losses | 67,000,000 | ||
| Interest limitation carryforward | 23,000,000 | ||
| Tax losses not subject to expiration | 238,000,000 | ||
| Interest limitation carryforward not to expire | 0 | ||
| Valuation Allowance | $ 104,000,000 | $ 59,000,000 | |
| Effective Income tax rate reconciliation, foreign income tax rate differential, percent | 21.00% | 19.00% | 19.00% |
| US [Member] | Federal [Member] | |||
| Income Tax Contingency [Line Items] | |||
| Interest limitation carryforward | $ 69,000,000 | ||
| US [Member] | State [Member] | |||
| Income Tax Contingency [Line Items] | |||
| Interest limitation carryforward | 185,000,000 | ||
| UK [Member] | |||
| Income Tax Contingency [Line Items] | |||
| Tax losses | 35,000,000 | ||
| Interest limitation carryforward | 50,000,000 | ||
| Tax losses not subject to expiration | 35,000,000 | ||
| Interest limitation carryforward not to expire | 50,000,000 | ||
| Valuation Allowance | 54,000,000 | $ 62,000,000 | |
| Reductions due to expiry of state of limitations | $ 2,000,000 | ||
| Effective Income tax rate reconciliation, foreign income tax rate differential, percent | 21.00% | 19.00% | 19.00% |
| Netherlands [Member] | |||
| Income Tax Contingency [Line Items] | |||
| Tax losses | $ 4,000,000 | ||
| Tax losses not subject to expiration | 4,000,000 | ||
| Valuation Allowance | 4,000,000 | $ 3,000,000 | |
| Hong Kong [Member] | |||
| Income Tax Contingency [Line Items] | |||
| Tax losses | 10,000,000 | ||
| Tax losses not subject to expiration | 10,000,000 | ||
| Valuation Allowance | $ 8,000,000 | $ 6,000,000 | |
| Soho House US Corporation [Member] | |||
| Income Tax Contingency [Line Items] | |||
| Ownership Percentage | 100.00% | 99.66% | |
Income Taxes - Summary of Unrecognized Tax Beneifts - Summary of Unrecognized Tax Beneifts (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Jan. 02, 2022 |
Jan. 03, 2021 |
Dec. 29, 2019 |
|
| Income Tax Disclosure [Abstract] | |||
| Beginning Balance | $ 11,293 | $ 9,221 | $ 7,147 |
| Additions related to the current year | 3,948 | 1,996 | 3,040 |
| Reductions due to expiry of state of limitations | (3,822) | (1,356) | (1,234) |
| Change in tax rate | 3,566 | 1,478 | 0 |
| Foreign exchange | 144 | (46) | 268 |
| Ending Balance | $ 15,129 | $ 11,293 | $ 9,221 |
Segments - Additional Information (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Jan. 02, 2022 |
Jan. 03, 2021 |
Dec. 29, 2019 |
|
| Segment Reporting Information [Line Items] | |||
| Operating Expenses | $ (507,735) | $ (356,502) | $ (535,514) |
| Consolidated Segment Revenue | 560,554 | 384,376 | $ 642,035 |
| Other Expense [Member] | |||
| Segment Reporting Information [Line Items] | |||
| Covid-19 Related Charges | 5,000 | ||
| Project Abandonment Costs | 7,000 | ||
| Payments of stock issuance costs | 14,000 | ||
| Restructuring costs | 2,000 | 6,000 | |
| General and Administrative Expense [Member] | |||
| Segment Reporting Information [Line Items] | |||
| Provision for loan, lease, and other losses | 5,000 | ||
| Membership Credit [Member] | |||
| Segment Reporting Information [Line Items] | |||
| Operating Expenses | $ 8,000 | $ 12,000 | |
Segments - Summary of Disaggregated Revenue (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Jan. 02, 2022 |
Jan. 03, 2021 |
Dec. 29, 2019 |
|
| Segment Reporting, Revenue Reconciling Item [Line Items] | |||
| Consolidated revenue | $ 560,554 | $ 384,376 | $ 642,035 |
| Total segment revenue | 592,576 | 414,923 | 699,006 |
| North America [Member] | |||
| Segment Reporting, Revenue Reconciling Item [Line Items] | |||
| Consolidated revenue | 226,708 | 156,248 | 257,502 |
| Total segment revenue | 240,146 | 173,031 | 282,029 |
| UK [Member] | |||
| Segment Reporting, Revenue Reconciling Item [Line Items] | |||
| Consolidated revenue | 173,499 | 126,106 | 230,534 |
| Total segment revenue | 179,587 | 129,246 | 236,853 |
| Europe ROW [Member] | |||
| Segment Reporting, Revenue Reconciling Item [Line Items] | |||
| Consolidated revenue | 67,923 | 47,446 | 87,920 |
| Total segment revenue | 80,419 | 58,070 | 114,045 |
| Reportable Segment [Member] | |||
| Segment Reporting, Revenue Reconciling Item [Line Items] | |||
| Consolidated revenue | 468,130 | 329,800 | 575,956 |
| Total segment revenue | 500,152 | 360,347 | 632,927 |
| All Other [Member] | |||
| Segment Reporting, Revenue Reconciling Item [Line Items] | |||
| Consolidated revenue | 92,424 | 54,576 | 66,079 |
| Total segment revenue | 92,424 | 54,576 | 66,079 |
| Membership Revenue [Member] | |||
| Segment Reporting, Revenue Reconciling Item [Line Items] | |||
| Consolidated revenue | 198,081 | 186,722 | 179,388 |
| Membership Revenue [Member] | North America [Member] | |||
| Segment Reporting, Revenue Reconciling Item [Line Items] | |||
| Consolidated revenue | 94,746 | 98,478 | 98,495 |
| Membership Revenue [Member] | UK [Member] | |||
| Segment Reporting, Revenue Reconciling Item [Line Items] | |||
| Consolidated revenue | 59,722 | 54,765 | 53,399 |
| Membership Revenue [Member] | Europe ROW [Member] | |||
| Segment Reporting, Revenue Reconciling Item [Line Items] | |||
| Consolidated revenue | 22,074 | 22,884 | 17,691 |
| Membership Revenue [Member] | Reportable Segment [Member] | |||
| Segment Reporting, Revenue Reconciling Item [Line Items] | |||
| Consolidated revenue | 176,542 | 176,127 | 169,585 |
| Membership Revenue [Member] | All Other [Member] | |||
| Segment Reporting, Revenue Reconciling Item [Line Items] | |||
| Consolidated revenue | 21,539 | 10,595 | 9,803 |
| In House Revenue [Member] | |||
| Segment Reporting, Revenue Reconciling Item [Line Items] | |||
| Consolidated revenue | 227,843 | 133,151 | 337,257 |
| In House Revenue [Member] | North America [Member] | |||
| Segment Reporting, Revenue Reconciling Item [Line Items] | |||
| Consolidated revenue | 103,289 | 50,684 | 138,813 |
| In House Revenue [Member] | UK [Member] | |||
| Segment Reporting, Revenue Reconciling Item [Line Items] | |||
| Consolidated revenue | 88,987 | 53,563 | 132,736 |
| In House Revenue [Member] | Europe ROW [Member] | |||
| Segment Reporting, Revenue Reconciling Item [Line Items] | |||
| Consolidated revenue | 35,567 | 28,904 | 65,708 |
| In House Revenue [Member] | Reportable Segment [Member] | |||
| Segment Reporting, Revenue Reconciling Item [Line Items] | |||
| Consolidated revenue | 227,843 | 133,151 | 337,257 |
| In House Revenue [Member] | All Other [Member] | |||
| Segment Reporting, Revenue Reconciling Item [Line Items] | |||
| Consolidated revenue | 0 | 0 | 0 |
| Other Revenue [Member] | |||
| Segment Reporting, Revenue Reconciling Item [Line Items] | |||
| Consolidated revenue | 166,652 | 95,050 | 182,361 |
| Other Revenue [Member] | North America [Member] | |||
| Segment Reporting, Revenue Reconciling Item [Line Items] | |||
| Consolidated revenue | 42,111 | 23,869 | 44,721 |
| Other Revenue [Member] | UK [Member] | |||
| Segment Reporting, Revenue Reconciling Item [Line Items] | |||
| Consolidated revenue | 30,878 | 20,918 | 50,718 |
| Other Revenue [Member] | Europe ROW [Member] | |||
| Segment Reporting, Revenue Reconciling Item [Line Items] | |||
| Consolidated revenue | 22,778 | 6,282 | 30,646 |
| Other Revenue [Member] | Reportable Segment [Member] | |||
| Segment Reporting, Revenue Reconciling Item [Line Items] | |||
| Consolidated revenue | 95,767 | 51,069 | 126,085 |
| Other Revenue [Member] | All Other [Member] | |||
| Segment Reporting, Revenue Reconciling Item [Line Items] | |||
| Consolidated revenue | 70,885 | 43,981 | 56,276 |
| Elimination of intersegment revenue | |||
| Segment Reporting, Revenue Reconciling Item [Line Items] | |||
| Consolidated revenue | (1,403) | ||
| Elimination of intersegment revenue | North America [Member] | |||
| Segment Reporting, Revenue Reconciling Item [Line Items] | |||
| Consolidated revenue | (801) | ||
| Elimination of intersegment revenue | UK [Member] | |||
| Segment Reporting, Revenue Reconciling Item [Line Items] | |||
| Consolidated revenue | (144) | ||
| Elimination of intersegment revenue | Europe ROW [Member] | |||
| Segment Reporting, Revenue Reconciling Item [Line Items] | |||
| Consolidated revenue | (458) | ||
| Elimination of intersegment revenue | Reportable Segment [Member] | |||
| Segment Reporting, Revenue Reconciling Item [Line Items] | |||
| Consolidated revenue | (1,403) | ||
| Elimination of intersegment revenue | All Other [Member] | |||
| Segment Reporting, Revenue Reconciling Item [Line Items] | |||
| Consolidated revenue | 0 | ||
| Elimination Of Equity Accounted Revenue [Member] | |||
| Segment Reporting, Revenue Reconciling Item [Line Items] | |||
| Consolidated revenue | (32,022) | (30,547) | (55,568) |
| Elimination Of Equity Accounted Revenue [Member] | North America [Member] | |||
| Segment Reporting, Revenue Reconciling Item [Line Items] | |||
| Consolidated revenue | (13,438) | (16,783) | (23,726) |
| Elimination Of Equity Accounted Revenue [Member] | UK [Member] | |||
| Segment Reporting, Revenue Reconciling Item [Line Items] | |||
| Consolidated revenue | (6,088) | (3,140) | (6,175) |
| Elimination Of Equity Accounted Revenue [Member] | Europe ROW [Member] | |||
| Segment Reporting, Revenue Reconciling Item [Line Items] | |||
| Consolidated revenue | (12,496) | (10,624) | (25,667) |
| Elimination Of Equity Accounted Revenue [Member] | Reportable Segment [Member] | |||
| Segment Reporting, Revenue Reconciling Item [Line Items] | |||
| Consolidated revenue | (32,022) | (30,547) | (55,568) |
| Elimination Of Equity Accounted Revenue [Member] | All Other [Member] | |||
| Segment Reporting, Revenue Reconciling Item [Line Items] | |||
| Consolidated revenue | $ 0 | $ 0 | $ 0 |
Segments - Summary of Reconciliation of Reportable Segment Adjusted EBITDA to Total Consolidated Segment Revenue (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Jan. 02, 2022 |
Jan. 03, 2021 |
Dec. 29, 2019 |
|
| Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
| Total consolidated segment revenue | $ 560,554 | $ 384,376 | $ 642,035 |
| Total segment operating expenses | (507,735) | (356,502) | (535,514) |
| Share of equity method investments adjusted EBITDA | 4,662 | 3,563 | 6,747 |
| Reportable segments adjusted EBITDA | 57,481 | (31,437) | 113,268 |
| Unallocated corporate overhead | (40,741) | (31,211) | (27,413) |
| Consolidated adjusted EBITDA | 16,740 | 226 | 85,855 |
| Depreciation and amortization | (83,613) | (69,802) | (57,139) |
| Interest expense, net | (84,382) | (77,792) | (64,108) |
| Income tax (expense) benefit | (894) | 776 | (4,468) |
| Gain (loss) on sale of property and equipment | 6,837 | 98 | (1,340) |
| Share Of Loss Of Equity Method Investments | (2,249) | (3,627) | |
| Share of profit of equity method investments | 774 | ||
| Foreign exchange | (25,541) | 3,354 | 3,465 |
| Pre-opening expenses | (21,294) | (21,058) | (23,437) |
| Non-cash rent | (12,651) | (15,627) | (33,128) |
| Deferred registration fees, net | (4,463) | (1,149) | (6,633) |
| Share of equity method investments adjusted EBITDA | (4,662) | (3,563) | (6,747) |
| Share-based compensation expense, net of tax | (26,660) | (2,618) | 0 |
| Other expenses, net | (25,882) | (44,493) | (21,094) |
| Net loss | (268,714) | (235,275) | (128,000) |
| North America [Member] | |||
| Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
| Total consolidated segment revenue | 226,708 | 156,248 | 257,502 |
| Total segment operating expenses | (183,051) | (131,444) | (210,577) |
| Share of equity method investments adjusted EBITDA | 2,289 | 2,647 | 3,674 |
| Reportable segments adjusted EBITDA | 45,946 | 27,451 | 50,599 |
| UK [Member] | |||
| Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
| Total consolidated segment revenue | 173,499 | 126,106 | 230,534 |
| Total segment operating expenses | (145,293) | (112,862) | (189,385) |
| Share of equity method investments adjusted EBITDA | 760 | 132 | 802 |
| Reportable segments adjusted EBITDA | 28,966 | 13,376 | 41,951 |
| Europe ROW [Member] | |||
| Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
| Total consolidated segment revenue | 67,923 | 47,446 | 87,920 |
| Total segment operating expenses | (64,686) | (50,677) | (74,827) |
| Share of equity method investments adjusted EBITDA | 1,613 | 784 | 2,271 |
| Reportable segments adjusted EBITDA | 4,850 | (2,447) | 15,364 |
| Reportable Segment [Member] | |||
| Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
| Total consolidated segment revenue | 468,130 | 329,800 | 575,956 |
| Total segment operating expenses | (393,030) | (294,983) | (474,789) |
| Share of equity method investments adjusted EBITDA | 4,662 | 3,563 | 6,747 |
| Reportable segments adjusted EBITDA | 79,762 | 38,380 | 107,914 |
| Consolidated adjusted EBITDA | 16,740 | 226 | 85,855 |
| Depreciation and amortization | 83,613 | 69,802 | 57,139 |
| Interest expense, net | 84,382 | 77,792 | 64,108 |
| Income tax (expense) benefit | (894) | 776 | (4,468) |
| EBITDA | (99,825) | (88,457) | (2,285) |
| Gain (loss) on sale of property and equipment | (6,837) | (98) | 1,340 |
| Share Of Loss Of Equity Method Investments | 2,249 | 3,627 | (774) |
| Foreign exchange | 25,541 | (3,354) | (3,465) |
| Pre-opening expenses | 21,294 | 21,058 | 23,437 |
| Non-cash rent | 12,651 | 15,627 | 33,128 |
| Deferred registration fees, net | 4,463 | 1,149 | 6,633 |
| Share of equity method investments adjusted EBITDA | 4,662 | 3,563 | 6,747 |
| Share-based compensation expense, net of tax | (26,660) | (2,618) | 0 |
| Other expenses, net | 25,882 | 44,493 | 21,094 |
| Net loss | (268,714) | (235,275) | (128,000) |
| All Other [Member] | |||
| Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
| Total consolidated segment revenue | 92,424 | 54,576 | 66,079 |
| Total segment operating expenses | (114,705) | (61,519) | (60,725) |
| Share of equity method investments adjusted EBITDA | 0 | 0 | |
| Reportable segments adjusted EBITDA | $ (22,281) | $ (6,943) | $ 5,354 |
Segments - Summary of Long-lived Asset Information By Geographic Area (Detail) - USD ($) $ in Thousands |
Jan. 02, 2022 |
Jan. 03, 2021 |
|---|---|---|
| Segment Reporting Information [Line Items] | ||
| Long-lived assets by geography | $ 1,705,573 | $ 1,655,539 |
| UNITED KINGDOM | ||
| Segment Reporting Information [Line Items] | ||
| Long-lived assets by geography | 571,716 | 567,093 |
| North America [Member] | ||
| Segment Reporting Information [Line Items] | ||
| Long-lived assets by geography | 807,163 | 760,864 |
| Non-US [Member] | ||
| Segment Reporting Information [Line Items] | ||
| Long-lived assets by geography | $ 326,694 | $ 327,582 |
Related Party Transactions - Additional Information (Detail) $ in Thousands, £ in Millions |
12 Months Ended | ||||||||
|---|---|---|---|---|---|---|---|---|---|
|
Jan. 02, 2022
USD ($)
|
Jan. 03, 2021
USD ($)
|
Dec. 29, 2019
USD ($)
|
Jul. 19, 2021
USD ($)
|
Mar. 23, 2021
USD ($)
|
Dec. 29, 2019
GBP (£)
|
Jun. 30, 2019
USD ($)
|
May 03, 2019 |
Dec. 30, 2018 |
|
| Related Party Transaction [Line Items] | |||||||||
| Total revenues | $ 560,554 | $ 384,376 | $ 642,035 | ||||||
| Due from Owners | 1,000 | 1,000 | |||||||
| Operating Lease, Right-of-Use Asset | 996,991 | 961,787 | |||||||
| Operating Lease, Liability | 1,151,685 | ||||||||
| Operating Leases, Rent Expense | $ 117,000 | $ 110,000 | 89,000 | ||||||
| Lessee, Operating Lease, Option to Extend | multiple | This lease was extended for an additional 5 years in fiscal 2021 | |||||||
| Due to Related Parties, Current | $ 21,661 | $ 611 | |||||||
| Rental Income from Related Party | 0 | 0 | 0 | ||||||
| Raycliff Capital LLC [Member] | |||||||||
| Related Party Transaction [Line Items] | |||||||||
| Operating Lease, Right-of-Use Asset | 23,000 | ||||||||
| Operating Lease, Liability | 22,000 | ||||||||
| Operating Leases, Rent Expense | $ 2,000 | ||||||||
| Lessee, Operating Lease, Term of Contract | 19 years | ||||||||
| Lease Expiration Date | Dec. 15, 2039 | ||||||||
| Soho Works Limited [Member] | |||||||||
| Related Party Transaction [Line Items] | |||||||||
| Operating Lease, Right-of-Use Asset | $ 97,000 | 100,000 | |||||||
| Operating Lease, Liability | 117,000 | 120,000 | |||||||
| Operating Leases, Rent Expense | $ 11,000 | 9,000 | |||||||
| Lessee, Operating Lease, Term of Contract | 19 years | ||||||||
| Lease Expiration Date | Jul. 25, 2039 | ||||||||
| Soho Works Limited [Member] | Related Party Loans [Member] | |||||||||
| Related Party Transaction [Line Items] | |||||||||
| Line of Credit Facility, Current Borrowing Capacity | 14,000 | £ 11 | |||||||
| Soho House Limited [Member] | |||||||||
| Related Party Transaction [Line Items] | |||||||||
| Interest Free Loan | $ 1,000 | ||||||||
| Yucaipa Companies LLC [Member] | |||||||||
| Related Party Transaction [Line Items] | |||||||||
| Operating Lease, Right-of-Use Asset | $ 11,000 | 12,000 | |||||||
| Operating Lease, Liability | 17,000 | 17,000 | |||||||
| Operating Leases, Rent Expense | $ 3,000 | 3,000 | 2,000 | ||||||
| Lessee, Operating Lease, Term of Contract | 20 years | ||||||||
| Due to Related Parties, Current | $ 10,000 | ||||||||
| Lease Expiration Date | Dec. 31, 2038 | ||||||||
| Yucaipa Companies LLC [Member] | IPO [Member] | |||||||||
| Related Party Transaction [Line Items] | |||||||||
| Due to Related Parties, Current | $ 9,000 | ||||||||
| Soho Ludlow Tenant LLC [Member] | |||||||||
| Related Party Transaction [Line Items] | |||||||||
| Operating Lease, Right-of-Use Asset | $ 9,000 | 9,000 | |||||||
| Operating Lease, Liability | 15,000 | 15,000 | |||||||
| Operating Leases, Rent Expense | $ 1,000 | 10,000 | 11,000 | ||||||
| Lessee, Operating Lease, Term of Contract | 22 years | ||||||||
| Lessee, Operating Lease, Option to Extend | three additional five-year terms | ||||||||
| Lease Expiration Date | Apr. 20, 2041 | ||||||||
| Ludlow Acquisition LLC [Member] | |||||||||
| Related Party Transaction [Line Items] | |||||||||
| Operating Lease, Right-of-Use Asset | $ 30,000 | 31,000 | |||||||
| Operating Lease, Liability | 33,000 | 34,000 | |||||||
| Operating Leases, Rent Expense | $ 4,000 | 4,000 | 4,000 | ||||||
| Lessee, Operating Lease, Term of Contract | 25 years | ||||||||
| Ned-Soho House, LLP [Member] | |||||||||
| Related Party Transaction [Line Items] | |||||||||
| Management Fee Expense | $ 1,000 | 2,000 | 4,000 | ||||||
| Development Fees | 1,000 | 2,000 | 4,000 | ||||||
| Cost Reimbursements | 1,000 | 2,000 | 4,000 | ||||||
| Soho House Design [Member] | |||||||||
| Related Party Transaction [Line Items] | |||||||||
| Due from Owners | 0 | 2,000 | |||||||
| Amount Due To Company For Product And Services | 1,000 | 1,000 | |||||||
| Soho House Design [Member] | Product [Member] | |||||||||
| Related Party Transaction [Line Items] | |||||||||
| Total revenues | 1,000 | 1,000 | 1,000 | ||||||
| Soho House Design [Member] | Service to Joint Ventures [Member] | |||||||||
| Related Party Transaction [Line Items] | |||||||||
| Total revenues | 7,000 | 7,000 | 11,000 | ||||||
| Soho House Design [Member] | Service to Owner [Member] | |||||||||
| Related Party Transaction [Line Items] | |||||||||
| Total revenues | 1,000 | 2,000 | 1,000 | ||||||
| Soho Restaurants Limited [Member] | |||||||||
| Related Party Transaction [Line Items] | |||||||||
| Sold equity interest | 50.00% | ||||||||
| Amount Recharged Under Agreement | $ 1,000 | 1,000 | 1,000 | ||||||
| Proceeds, Financing Receivable, Previously Written Off Charges | 10,000 | ||||||||
| Soho Restaurants Limited [Member] | Service [Member] | |||||||||
| Related Party Transaction [Line Items] | |||||||||
| Total revenues | $ 1,000 | $ 2,000 | |||||||
Related Party Transactions - Summary of Details Amounts Owed By (to) Equity Method Investees Due Within One Year (Detail) - USD ($) $ in Thousands |
Jan. 02, 2022 |
Jan. 03, 2021 |
|---|---|---|
| Related Party Transaction [Line Items] | ||
| Related Party Transaction, Due from (to) Related Party | $ (3,086) | $ (121) |
| Soho House Toronto Partnership [Member] | ||
| Related Party Transaction [Line Items] | ||
| Related Party Transaction, Due from (to) Related Party | (810) | (1,787) |
| Soho House Cipura (Miami), LLC [Member] | ||
| Related Party Transaction [Line Items] | ||
| Related Party Transaction, Due from (to) Related Party | 0 | 1,427 |
| Raycliff Red LLP [Member] | ||
| Related Party Transaction [Line Items] | ||
| Related Party Transaction, Due from (to) Related Party | (2,952) | (684) |
| Mirador Barcel S.L [Member] | ||
| Related Party Transaction [Line Items] | ||
| Related Party Transaction, Due from (to) Related Party | 450 | 773 |
| Little Beach House Barcelona S.L [Member] | ||
| Related Party Transaction [Line Items] | ||
| Related Party Transaction, Due from (to) Related Party | (203) | 1 |
| Mimea XXI S.L. [Member] | ||
| Related Party Transaction [Line Items] | ||
| Related Party Transaction, Due from (to) Related Party | $ 429 | $ 149 |
Subsequent Events - Additional Information (Detail) € in Millions, £ in Millions, $ in Millions |
1 Months Ended | 2 Months Ended | 12 Months Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 11, 2022 |
Feb. 11, 2022 |
Dec. 31, 2017
GBP (£)
|
Aug. 31, 2020 |
Jan. 31, 2012
shares
|
Feb. 28, 2022
shares
|
Jan. 02, 2022 |
Jan. 03, 2021 |
Mar. 09, 2022
USD ($)
|
Mar. 31, 2021
USD ($)
|
Mar. 31, 2021
EUR (€)
|
Feb. 28, 2019 |
|
| Subsequent Event [Line Items] | ||||||||||||
| Senior notes | $ 295 | € 62 | ||||||||||
| Revolving credit facility maturity date extend description | The Second Amendment amends the Revolving Credit Facility to extend the maturity date from January 25, 2023 to January 25, 2024. | |||||||||||
| Interest rate | 4.00% | |||||||||||
| Debt Instrument, Maturity Date | Sep. 30, 2023 | |||||||||||
| Mortgages [Member] | ||||||||||||
| Subsequent Event [Line Items] | ||||||||||||
| Debt Instrument, Maturity Date | Sep. 29, 2022 | |||||||||||
| Term Loan [Member] | Mortgages [Member] | ||||||||||||
| Subsequent Event [Line Items] | ||||||||||||
| Line of credit facility | £ | £ 40 | |||||||||||
| Interest rate | 5.34% | |||||||||||
| Subordinated Debt [Member] | Mortgages [Member] | ||||||||||||
| Subsequent Event [Line Items] | ||||||||||||
| Interest rate | 7.00% | 7.25% | 7.25% | 7.25% | ||||||||
| Debt Instrument, Maturity Date | Feb. 06, 2024 | Feb. 06, 2024 | ||||||||||
| Soho House Bond Limited | ||||||||||||
| Subsequent Event [Line Items] | ||||||||||||
| Stock shares issued during the period shares | 4,469,417 | |||||||||||
| Subsequent Event [Member] | ||||||||||||
| Subsequent Event [Line Items] | ||||||||||||
| Revolving credit facility maturity date extend description | The Amendment Letter amends the Revolving Credit Facility to extend the Termination Date, as defined therein, from January 25, 2023 to January 25, 2024 | |||||||||||
| Subsequent Event [Member] | Mortgages [Member] | ||||||||||||
| Subsequent Event [Line Items] | ||||||||||||
| Debt Instrument, Extended Maturity Date | Sep. 29, 2023 | |||||||||||
| Subsequent Event [Member] | Common Class A [Member] | ||||||||||||
| Subsequent Event [Line Items] | ||||||||||||
| Stock shares issued during the period shares | 506,990 | |||||||||||
| Subsequent Event [Member] | Soho House Bond Limited | Secured Debt [Member] | ||||||||||||
| Subsequent Event [Line Items] | ||||||||||||
| Senior notes | $ | $ 100 | |||||||||||