The online auctioneer, Auctionata Paddle8, which merged last May, has filed for insolvency to restructure the business. The Berlin-based parent group announced on 19 January that it is holding several conversations with investors about future funding for Auctionata.
Meanwhile, Paddle8 announced it has found an investor to buy back the New York-based company, which is a separate entity to Auctionata. Paddle8's operations are not subject to the insolvency proceedings. Auctionata will continue to run auctions and sell merchandise under a “special protection regime”, according to a statement.
“Auctionata and Paddle8 have redefined the online auction market for art and luxury goods,” says Thomas Hesse, who was appointed chief executive of the parent company in September. “This procedure will enable both brands and companies to maximise their potential.”
Paddle8, which was founded in 2011, focuses mainly on contemporary art and design, while Auctionata, set up a year later in Berlin, has been described as “the leading online auction house for art and luxury collectibles”.