The Story Behind the Sale of Auction House Philips Du Pury

Judd Tully of ArtInfo and Art + Auction chronicles the recent history and purchase of auction house Phillips De Pury by the Russian luxury goods company Mercury Group. The AW Blog reported on the sale in October, click HERE to read the post. Tully states terms were not released publicly, but it is believed Mercury paid $60 million for the auction house, with about $50 million going to cover outstanding debt. The Mercury group is a large conglomerate of stores and malls specializing in luxury goods.

The article is an interesting read as it follows the chain of events and ownership over the past 10 years including the purchase of Phillips by LVHM group, the hiring and ownership stake of De Pury and the eventual sale to the Russian Mercury group.

Tully states, After huge investments failed to win Phillips a significant share of the Impressionist, modern and contemporary art markets, LVHM’s ambitious strategy foundered in a sea of red ink. Arnault and company gradually bowed out of the partnership, ceding control to de Pury & Luxembourg in February 2002; the following January, LVHM sold its remaining stake for a token sum. In March 2004 Luxembourg resigned to start her own dealership and art-investment fund, selling her shares to de Pury, with whom she still maintains the Zurich gallery, which Mercury did not acquire in the deal.

Speculation abounds about the circumstances surrounding the Russian company’s buyout of Phillips, which came less than two weeks before the house’s humiliating October 18 contemporary evening sale in London, where just 25 percent of lots sold by value.

It is an interesting read. Click HERE to read the full article.