On January 19, 2017, Auctionata Paddle8 AG announced that it was insolvent (unable to pay its debts).
Auctionata is an auction house that can be classified somewhere between the well-known internet auctioneers such as eBay or Catawiki and traditional auctioneers such as Bonhams, Artcurial or RM/Sotheby's. The products - art, classic cars - were auctioned via the internet, but a live auction was broadcast via a television-like infrastructure, with a hammer-wielding auctioneer and an explanation of the items on offer. Since the end of 2014, Auctionata has also been auctioning classic cars and later motorcycles. An auction was organized roughly every 1 to 2 months, and there have probably been around 20 so far.
According to insiders, the financial problems did not arise in the "Classic Cars" segment, but observers were amazed at the relatively high communication costs in Auctionata's car/motorcycle business and the comparatively low sales quotas.
Auctionata would like to use the insolvency phase to sell its subsidiaries Paddle8 Inc. and Auctionata Paddle8 Ltd. on the one hand and to recapitalize the business on the other. It should be noted that Paddle8 was only integrated in 2016.
The Auctionata press release states: "... and to continue to successfully grow the strong technology platform in collaboration with professional partners and traditional auctioneers. With a clear focus on operational efficiency, attractive products for consignors and sellers and a strong customer experience, Auctionata will continue to operate with a leaner cost structure in order to reach break-even."
According to the information available, Auctionata will continue to operate auctions and sell goods "under the special protection of the provisional procedure". The sales proceeds will be held in trust and consigned goods will remain the separate property of the consignors.
Further information can be found on the auctionata website.
