Commitments and Contingencies	6 Months Ended
Jul. 03, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	16. 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 unaudited condensed 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 was 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 and was classified within other current liabilities on the Company’s unaudited condensed consolidated balance sheet. In March 2021, the Company decided in its discretion to extend the expiration date of the membership credits 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. The Company recognized marketing expenses of $1 million and $4 million during the 13 weeks and 26 weeks ended July 4, 2021, respectively, which are included within other expense in the unaudited condensed consolidated statements of operations. There were no material marketing expenses recognized during the 26 weeks ended July 3, 2022. Capital Commitments As of July 3, 2022, capital expenditure commitments contracted for but not yet incurred total $2 million and are related primarily to site improvement costs for Soho House West Hollywood and Soho House Hong Kong. Business Interruption and Property Insurance The Company maintains insurance policies to cover business interruption with terms that management believes to be adequate and appropriate. These policies may be subject to applicable deductible or retention amounts, coverage limitations and exclusions and may not be sufficient to cover all of the losses incurred. The Company did not incur any losses during the 13 weeks and 26 weeks ended July 4, 2021. In February 2022, there was a fire at Little Beach House Malibu which resulted in full House closure until April 2022. As a result of the fire damage, the Company recorded business interruption insurance proceeds totaling less than $1 million related to the reimbursement of lost profits as a result of the closure. This amount is recorded as business interruption income on the unaudited condensed consolidated statement of operations for the 13 weeks and 26 weeks ended July 3, 2022. In addition, the Company recognized recoveries totaling less than $1 million in connection with property damage insurance, which reimburses the replacement cost for repair or replacement of damaged assets. The Company has recognized a receivable in connection with outstanding insurance recoveries, which is included in prepaid expenses and other current assets on the unaudited condensed consolidated balance sheets. Collection of the receivable is deemed to be probable.

Commitments and Contingencies

6 Months Ended

Jul. 03, 2022

Commitments and Contingencies Disclosure [Abstract]

16.

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 unaudited condensed 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 was 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 and was classified within other current liabilities on the Company’s unaudited condensed consolidated balance sheet. In March 2021, the Company decided in its discretion to extend the expiration date of the membership credits 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. The Company recognized marketing expenses of $1 million

and $4 million during the 13 weeks and 26 weeks ended July 4, 2021, respectively, which are included within other expense in the unaudited condensed consolidated statements of operations. There were no material marketing expenses recognized during the 26 weeks ended July 3, 2022.

Capital Commitments

As of July 3, 2022, capital expenditure commitments contracted for but not yet incurred total $2 million and are related primarily to site improvement costs for Soho House West Hollywood and Soho House Hong Kong.

Business Interruption and Property Insurance

The Company maintains insurance policies to cover business interruption with terms that management believes to be adequate and appropriate. These policies may be subject to applicable deductible or retention amounts, coverage limitations and exclusions and may not be sufficient to cover all of the losses incurred. The Company did not incur any losses during the 13 weeks and 26 weeks ended July 4, 2021.

In February 2022, there was a fire at Little Beach House Malibu which resulted in full House closure until April 2022. As a result of the fire damage, the Company recorded business interruption insurance proceeds totaling less than $1 million related to the reimbursement of lost profits as a result of the closure. This amount is recorded as business interruption income on the unaudited condensed consolidated statement of operations for the 13 weeks and 26 weeks ended July 3, 2022.

In addition, the Company recognized recoveries totaling less than $1 million in connection with property damage insurance, which reimburses the replacement cost for repair or replacement of damaged assets.

The Company has recognized a receivable in connection with outstanding insurance recoveries, which is included in prepaid expenses and other current assets on the unaudited condensed consolidated balance sheets. Collection of the receivable is deemed to be probable.