Sotheby’s fishes for art collectors – will it succeed?

Sotheby’s is seeking to restore confidence in the market after getting its hands on the $400 million art collection of Leonard Lauder, which includes Gustav Klimt's Portrait of Elisabeth Lederer

Elisabeth Lederer Gustav Klimt
(Image credit: Sotheby's)

Summer is over, and the all-important autumn auction sales are upon us. For auction house Sotheby’s, this season is even more important than usual. In July, it reported a pre-tax loss of $248 million for the previous 12 months, double that in 2024. So, every sale counts – or does it?

The trouble that Sotheby’s is facing, like all auction houses, is the triple threat from political uncertainty, relatively high interest rates and shrinking demand from art collectors in Asia. That means consignors have been “loath to part with their most prized artworks – unsure of being able to attract top prices”, says The New York Times.

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A roll of the dice for Sotheby's

The danger for Sotheby’s, as The New York Times notes, is that it has guaranteed the Lauder estate a minimum price for the painting. It is unclear whether Sotheby’s has offset that risk through third-party guarantors, which is standard practice. But still, “the question I would ask is if Sotheby’s is making money from this. Or are they losing money to create an appearance of confidence,” Jacob King, an art adviser, tells the paper. In March, Sotheby’s failed to sell Alberto Giacometti’s 1955 sculpture Grande tête mince, the “$70 million star” of the spring season. Art-market watchers will be watching to see if the confidence Sotheby’s has sought to convey with the guarantee is more than an illusion.

Last week, Christie’s offered a ray of hope that there are still deep-pocketed buyers out there, in Asia. It sold Buste de femme (1944) by Pablo Picasso in Hong Kong for HK$196.75 million (£18.9 million) – well above the HK$106 million (£10.1 million) estimate. Coincidentally, Lucien Paris is selling a second portrait of Picasso’s wartime muse, Dora Maar, on 24 October. It is the first time Buste de femme au chapeau à fleurs (1943), conservatively valued at €8 million, has been seen in public for 80 years.


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Chris Carter
Wealth Editor, MoneyWeek

Chris Carter spent three glorious years reading English literature on the beautiful Welsh coast at Aberystwyth University. Graduating in 2005, he left for the University of York to specialise in Renaissance literature for his MA, before returning to his native Twickenham, in southwest London. He joined a Richmond-based recruitment company, where he worked with several clients, including the Queen’s bank, Coutts, as well as the super luxury, Dorchester-owned Coworth Park country house hotel, near Ascot in Berkshire.

Then, in 2011, Chris joined MoneyWeek. Initially working as part of the website production team, Chris soon rose to the lofty heights of wealth editor, overseeing MoneyWeek’s Spending It lifestyle section. Chris travels the globe in pursuit of his work, soaking up the local culture and sampling the very finest in cuisine, hotels and resorts for the magazine’s discerning readership. He also enjoys writing his fortnightly page on collectables, delving into the fascinating world of auctions and art, classic cars, coins, watches, wine and whisky investing.

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