Soho House has revealed a £40m cash injection in its latest accounts
Private members club Soho House has revealed a £40m cash injection despite recording increased operating losses.
Parent group SHG Acquisition (UK), which also includes operations in Istanbul and Amsterdam, revealed an operating loss of £11.8m in accounts filed with Companies House for the 2015 financial year.
It comes a year after SHG notched an operating loss of £577,000.
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The firm did make a pre-tax profit, but only thanks to £13.8m from the sale of a 50 per cent stake in its Pizza East, Dirty Burger and Chicken Shop chain of restaurants.
And it was further boosted by £40m in borrowing via a tranche of “Payment In Kind” notes, which carry interest payments of 12 per cent plus Libor.
The notes will be repayable in October 2019, with the extra funds set to be used to open further new venues.
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The business is also undertaking a renovation of its original site on Greek Street in Soho.
The fresh cash injection comes after SHG completed a £152.5m fundraising designed to help the business, jointly owned by US billionaire Ron Burkle, investor Richard Caring and founder Nick Jones.