This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.theguardian.com/artanddesign/2016/feb/26/sothebys-fourth-quarter-loss-staff-resignation
The article has changed 3 times. There is an RSS feed of changes available.
| Version 1 | Version 2 |
|---|---|
| Sotheby's announces $11.2m loss in fourth quarter and staff resignations | Sotheby's announces $11.2m loss in fourth quarter and staff resignations |
| (6 months later) | |
| The world-famous art auctioneer Sotheby’s suffered an $11.2m (£8.1m) loss in the fourth quarter of last year, warning on Friday of difficult months to come as the art market enters a slowdown. | The world-famous art auctioneer Sotheby’s suffered an $11.2m (£8.1m) loss in the fourth quarter of last year, warning on Friday of difficult months to come as the art market enters a slowdown. |
| The salesroom, which reported a profit of $74m over the same period a year ago, warned that commissions from auctions – its largest source of income – fell 8% to $284.4m in the final three months of the year. Total revenue dropped from $351m to $335m. Sotheby’s blamed a slowdown in fine arts sales in Asia. | The salesroom, which reported a profit of $74m over the same period a year ago, warned that commissions from auctions – its largest source of income – fell 8% to $284.4m in the final three months of the year. Total revenue dropped from $351m to $335m. Sotheby’s blamed a slowdown in fine arts sales in Asia. |
| The auctioneer has experienced executive suite defections and firings over the past two years, after activist investor Dan Loeb demanded the company return more cash to shareholders. It announced further staff defections on Friday. | The auctioneer has experienced executive suite defections and firings over the past two years, after activist investor Dan Loeb demanded the company return more cash to shareholders. It announced further staff defections on Friday. |
| Alex Rotter, global co-head of contemporary art, is leaving after 16 years. David Norman, vice-chairman of Sotheby’s Americas and co-chairman of impressionist and modern art worldwide, is to leave after 31 years. | Alex Rotter, global co-head of contemporary art, is leaving after 16 years. David Norman, vice-chairman of Sotheby’s Americas and co-chairman of impressionist and modern art worldwide, is to leave after 31 years. |
| Their exit marks a broad exodus of established art expertise as Sotheby’s attempts to compete with arch-rival Christie’s aggressive penetration of Asian markets. Anthony Grant, international senior specialist in contemporary art, left in January. Melanie Clore, chairman in Europe and co-chairman of impressionist and modern art worldwide, resigned a month later. | Their exit marks a broad exodus of established art expertise as Sotheby’s attempts to compete with arch-rival Christie’s aggressive penetration of Asian markets. Anthony Grant, international senior specialist in contemporary art, left in January. Melanie Clore, chairman in Europe and co-chairman of impressionist and modern art worldwide, resigned a month later. |
| The company has been quick to note each departing executive’s signal achievement: Rotter helped win the consignment of Jeff Koons’ Hanging Heart (Magenta/Gold) sculpture, which fetched $23.6m in 2007; Norman oversaw the sale of Pablo Picasso’s Garçon à la pipe, which fetched $104.2m in 2004, the first work to break through the $100m barrier. | The company has been quick to note each departing executive’s signal achievement: Rotter helped win the consignment of Jeff Koons’ Hanging Heart (Magenta/Gold) sculpture, which fetched $23.6m in 2007; Norman oversaw the sale of Pablo Picasso’s Garçon à la pipe, which fetched $104.2m in 2004, the first work to break through the $100m barrier. |
| The staff shakeup reflects broad changes at the company following its acquisition of a private art advisory firm, Art Agency Partners, for about $85m earlier this year. The agency’s executives, former Christie’s executive Amy Cappellazzo and Allan Schwartzman, are now effectively in charge of a new department that oversees impressionist, modern and contemporary art. | The staff shakeup reflects broad changes at the company following its acquisition of a private art advisory firm, Art Agency Partners, for about $85m earlier this year. The agency’s executives, former Christie’s executive Amy Cappellazzo and Allan Schwartzman, are now effectively in charge of a new department that oversees impressionist, modern and contemporary art. |
| Market experts have recently warned that a slowdown in global sales – the recent London round of auctions were down 45% from a year earlier – is being exacerbated by a shortage of masterpieces for auction. The art market boom, coupled with the rise of lavish third-party guarantees, has sharply reduced the inventory of privately held art that could be up for sale. | Market experts have recently warned that a slowdown in global sales – the recent London round of auctions were down 45% from a year earlier – is being exacerbated by a shortage of masterpieces for auction. The art market boom, coupled with the rise of lavish third-party guarantees, has sharply reduced the inventory of privately held art that could be up for sale. |
| As a result, both Sotheby’s and Christie’s are looking to serve ultra-rich customers in new areas of luxury acquisition, including selling primary market work in an effort to compete with mega-gallerists like Larry Gagosian and David Zwirner. | As a result, both Sotheby’s and Christie’s are looking to serve ultra-rich customers in new areas of luxury acquisition, including selling primary market work in an effort to compete with mega-gallerists like Larry Gagosian and David Zwirner. |
| According to Artnet, while the global art market declined by 6% between 2014 and 2016, largely through declines in Asia and the UK, the US market is still expanding, with sales climbing from $2.9bn to $3.4bn. | According to Artnet, while the global art market declined by 6% between 2014 and 2016, largely through declines in Asia and the UK, the US market is still expanding, with sales climbing from $2.9bn to $3.4bn. |
| Efforts to reform Sotheby’s started taking shape a year ago when the board appointed Tad Smith, chief executive of the Madison Square Garden entertainment franchise, to run the company, and selected Domenico De Sole, a former chief executive of Gucci who recently settled a $25m suit against Knoedler Gallery executives over the sale of a fake Rothko, to become chairman. | Efforts to reform Sotheby’s started taking shape a year ago when the board appointed Tad Smith, chief executive of the Madison Square Garden entertainment franchise, to run the company, and selected Domenico De Sole, a former chief executive of Gucci who recently settled a $25m suit against Knoedler Gallery executives over the sale of a fake Rothko, to become chairman. |
| Both appointments signal that the salesroom is moving heavily towards brand-building. Despite record sales over the past several years, auction houses have found it increasingly hard to make money as the cost of securing lots and bringing them to auction soars. | Both appointments signal that the salesroom is moving heavily towards brand-building. Despite record sales over the past several years, auction houses have found it increasingly hard to make money as the cost of securing lots and bringing them to auction soars. |
| Despite Sotheby’s share price falling 45% over the past year to $23.85, Smith said he remained “confident in our future and managing the business through uncertainty with a clear eye on creating value now for shareholders and clients”. | Despite Sotheby’s share price falling 45% over the past year to $23.85, Smith said he remained “confident in our future and managing the business through uncertainty with a clear eye on creating value now for shareholders and clients”. |