Shares of Soho House (NYSE: SHCO) -- previously known as Membership Collective -- fell more than 19% on Wednesday after the membership-based luxury hotel and clubs operator fell into the crosshairs of a noted short-selling firm.

Soho House's stock price has languished since the company went public in 2021. Revenue in its most recent (third) quarter grew 13.1% year over year to $301 million, including a more than 31% increase in membership revenue to $93.3 million. Its total membership count increased 20.8% year over year to just over 255,000. That growth translated to a quarterly net loss of $42.4 million. However, Soho House also saw adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) nearly double on a year-over-year basis to $42.1 million.

In a short report released this morning, short-selling firm Glasshouse Research mused that Soho House is "a company with a broken business model and terrible accounting, [and] faces material headwinds regarding its future viability as a public company."

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Source Fool.com