Sotheby's challenges arise at a particularly inopportune moment for billionaire Patrick Drahi, who acquired the auction house in 2019 with much excitement for a sum of $3.7 billion, a sum he both lacked and had borrowed, as he had done with all his assets.
The Financial Times reports that auction sales have decreased by 25% in the last year, while the income of the venerable institution have plummeted by 88%. The source of this phenomenon is a sudden and significant decline in the art market, namely in China, where the crisis has led to a substantial reduction in luxury expenditure.
Having accumulated a significant amount of debt, he requested assistance from Abu Dhabi. The Gulf revenues have already afforded Sotheby's its most discerning clientele for its art auctions. They now hold the status of stakeholders. The Emirati sovereign fund ADQ acquired a minority ownership interest in Sotheby's for a sum of $1 billion earlier this month.
Jacques Chirac famously observed that unrest spreads rapidly inside squadrons.
At present, Drahi is employing all available means to buy time and generate new funds by divesting a substantial amount of his holdings. Strategically buying time by anticipating a decrease in interest rates, which would enable him to assess additional credit lines at reduced costs.
There is no assurance that his creditors will pursue him.
The narrative surrounding this individual and his collective is captivating, as ultimately, despite the banks burdening him with over 50 billion euros of debt, his group failed to generate any profits.
seen in France www.vwart.com
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