Artinfo just released the news that Sotheby's was very pleased with its Canadian Art sale held last week. This was the first Sotheby's auction since the Rictchies/Sotheby's partnership failed. The sale estimate was between $3.5 and $5 million, with the total being $5.3 million. Click HERE to read the Artinfo update on the sale.
The ATG report is short, so I will post in its entirety.
The trustee appointed to oversee the collapse of Toronto-based Ritchies Auctioneers has presented a damning portrait of the company’s operations.
A preliminary report presented by the trustee in bankruptcy at the Toronto Office of the Superintendent of Bankruptcy Canada on November 17 criticises – in particular – Ritchies’ record keeping.
No financial statements were prepared by the company after June 2008 and its electronic database was not maintained, with the result that the company’s records do not include an accurate listing of the inventory or its owners.
According to the report, the money Ritchies collected from auction sales was not put in a separate trust account for consignors. “Instead all funds were commingled in the general accounts.” By late October, the company’s bank accounts were “either overdrawn or had minimal balances”.
The report states that the company has assets of just under $1.8m but liabilities of $8.53m. Of these, close to $8m is owed to “general consignors”.
1 comment:
A further take on this strange story was just published in Canada's foremost news magazine - Macleans. ("Going once, twice . . . gone" at http://www2.macleans.ca/2009/12/03/going-once-twice%E2%80%89-%E2%80%89-%E2%80%89-%E2%80%89gone/#more-94607).
Although the magazine's somewhat formulaic piece does not add anything new, it tells the tale reasonably well and adds some human dimension.
Interestingly, several well-known Toronto dealers get in a few post-mortem shots at the now bankrupt general auctioneer. It is doubtful, however, that the author of the piece was able to pick up on what appears to be little more than schadenfreude.
What shines through in the magazine article -- and in the comments heard out on the street -- is that once again the little guy ends up being the victim of this financial failure. It is highly doubtful that consignors or unsecured creditors will be able to recover much at the end of the bankruptcy proceedings.
Post a Comment