UK-based auction house Bonhams saw its pre-tax loss jump almost 90 percent to £213 million ($286.3 million) in 2024, as revenue fell 9 percent to £176 million ($236.6 million), according to its most recent filings with UK’s Companies House, as reported by the Financial Times.
(Financial filings released through Companies House, the UK’s rough equivalent of the U.S. Securities and Exchange Commission, typically trail by one year.)
The house saw impairment charges of £153 million ($205.5 million), driven by drooping cash flow forecasts. Impairment, in accounting terms, is “an unexpected deterioration in an asset’s ability to generate future economic benefits.”
The house noted in an email to ARTnews that the charge was to the equity owners’ investment, not cash losses, and that the charge was taken against the investment value held by the previous owners, private equity firm Epiris, who sold the house to European private credit manager Pemberton Asset Management in October.
In effect, the impairment reflects a reduced assessment of the auction house’s ability to generate future profits, which lead Epiris to write down the value of their investment rather than record an operating loss.
The news aligns with similarly bleak year-end reports from the world’s three largest auction houses for that period. Sotheby’s reported a 23 percent decline from 2023, while Christie’s saw an 8 percent drop and Phillips experienced a 14 percent decrease in global sales.
Pemberton’s purchase of Bonhams in October was for an undisclosed sum; since, the firm has lent Bonhams some £193 million ($259.2 million), per the FT. Amid the changeover, Chabi Nouri left her role as global CEO, as did chief commercial officer Céline Assimon. Nouri had been in the role just over a year, Assimon for just six months. Since, Seth Johnson joined as CEO, Liese Thomas as CFO, and Jennifer Babington as COO, according to an announcement from board chairman Hans-Kristian Hoejsgaard.
“The financial position detailed in the accounts ending 31 December 2024, is naturally, very out of date and hugely different to the reality today, which is one of optimism and positivity for the future,” said the house in an email. “Bonhams secured new ownership in October last year, which brought with it a fresh injection of capital and a new leadership team. The business is in a strong position to build on its strong foundations and meet the needs of the next generation of collectors.”
Epiris oversaw a period of significant growth, acquiring several smaller regional auction houses, bringing its number of salerooms worldwide to 14, spanning from Hong Kong to Los Angeles and Paris. Epiris had reportedly approached JPMorganChase to advise on a deal to sell the 233-year-old house, seeking $1 billion, but the sale process fell through, Bloomberg reported. Bonhams New York will set up shop at the historic Steinway Hall in February.
