A group of investors is buying Soho House for $2.7 billion, the company announced on Monday, Aug. 18.

As part of the deal, New York-based MCR Hotels will acquire Soho House’s publicly traded shares. Soho House & Co. founder Nick Jones and Executive Chairman Ron Burkle, along with his investment firm, will keep majority control of the clubs.

Since going public in 2021, Soho House – an upscale private members’ club frequented by A-listers, musicians, artists and other celebrity-adjacent individuals – has experienced a sharp decline in share value. The company has struggled to turn a profit despite growth in membership and revenue, according to Reuters.

Soho House shareholders will get $9 per share, while actor and investor Ashton Kutcher will join Soho’s board following the deal.

Here’s what you need to know about the deal:

What are investors saying about the deal?

In a statement, Andrew Carnie chief executive officer of Soho House, said, “Returning to private ownership enables us to build on this momentum, with the support of world-class hospitality and investment partners.”

Susannah Streeter, head of money and markets at Hargreaves Lansdown in London, told Reuters, “Its rapid expansion in recent years has sparked concerns that its ‘exclusive’ label was wearing thin’, while the wider consumer spending pullback in the hospitality industry has added pressure as Soho relies on in-house purchases such as meals and entertainment.”

When was Soho House founded?

Soho House was founded in London by restaurateur Nick Jones in 1995 as a gathering place for creative individuals. The club has 46 Soho Houses across Europe, North America and Asia.

CONTRIBUTING: Reuters

This article originally appeared on USA TODAY: Soho House is going private. Here's what you need to know

Reporting by Sara Chernikoff, USA TODAY / USA TODAY

USA TODAY Network via Reuters Connect