(Bloomberg) -- Soho House & Co Inc. jumped the most in more than a year after its controlling shareholder hinted at progress around the members-only club going private, while bemoaning in a public letter that investors are focused on short-term profits.

“When we went public I believed the market would reward growth, but it seemed to quickly switch to rewarding free cash flow and profit over our top-line growth. So at this point in time we have all the costs of being a public company with few benefits,” Ron Burkle, Soho House Executive Chair and controlling shareholder said in a letter to shareholders Monday.

Shares of Soho House surged as much as 28%, their largest intraday gain since January 2023. Burkle said the letter was to address leaks from the club’s special committee process, which was announced in February. 

“Interest from the special committee process has shown private buyers may be willing to step-up and close the gap,” Burkle wrote.

Reuters reported Monday that private equity firm CC Capital Management LLC is among the suitors to take Soho House private and that the parties have been in talks on and off since late last year.

Burkle did not name bidders in his letter but said he is not part of any bid to take the company private and intends to be an owner “for the long haul.” 

Soho House and CC Capital did not immediately respond to Bloomberg’s requests for comment.

Prior to Monday gains, Soho House shares have fallen about 65% since their initial public offering three years ago. The stock remains about 19% down year-to-date, compared to the S&P 500’s roughly 8% gain. 

Last month, the company denied as inaccurate a short seller report that compared the London-headquartered company to WeWork Inc. 

On Friday, Soho House posted a net loss for the quarter despite strong membership growth. Its revenue view for the full-year was also softer than anticipated. 

Soho House Draws Members Even as Club Continues to Lose Money

--With assistance from Carmen Reinicke.

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