Our friend Howard Rehs writes about the travails and unexpected saviors of art galleries:
New Orleans Auction Gallery Well, on April 1 this well known establishment filed for Chapter 11 bankruptcy. At the filing they claimed to have $500,000 in assets and liabilities of $4 million! Creditors number close to 200 and among the largest is Susan D. Krohn of Texas who is owed $2 million. The auction room will continue operations after receiving an infusion of cash from an investor. I always find it interesting that there are people still willing to back companies like this.
Here is how the New Orleans City Business blog describes the aftermath:
Stewart Peck, attorney for the company, said the estate auction house plans to restructure and maintain business as usual. According to court documents, Aschaffenburg Assets has committed to putting up $300,000 to keep operations going, and a planned auction set for this weekend is expected to fetch seven figures, Peck said.
Parties with the largest outstanding invoices are $2 million to Susan Krohn, an antiques dealer in Houston; $143,445 to Rare Art Inc. in New York; and $85,862 to First Bank and Trust Visa in New Orleans, according to court documents. The gallery also owes more than $61,000 to MPress, a New Orleans printing company.
N.O. Auction Gallery Declares Bankruptcy, Stays Open (NO City Business)