Sotheby's bowed to economic realities and slashed prices for much-hyped contemporary art works at an auction where almost a third of lots failed to sell.
The auction yesterday in New York of works by headline artists including Jeff Koons, Lucian Freud, Damien Hirst, and Andy Warhol, at times resembled a high-end fire sale.
Of 63 works on offer only 43 sold.
Just a handful that did sell met their pre-auction estimates, as Sotheby's accepted greatly reduced prices, and even fewer went above target.
The dismal showing highlighted how the global financial crisis has knocked a hole in the recently booming luxury collector's market.
Similar performances were seen at Sotheby's and rival Christies last week in their New York auctions of impressionist and modern art.
Lead auctioneer Tobias Meyer put on a brave face, saying after wards: "We are very happy with what happened tonight." He said that the hugely reduced prices reflected demand from a "seasoned, smart collecting community responding to great material."
"When the price was right, the audience responded and bought it. When the estimate might seem excessive, clearly they didn't."
The auction room in New York's ritzy Upper East Side was jammed for the sale, but the upscale customers, many in jewelry, furs, and other finery, were bargain hunting.
Sotheby's often bowed to the inevitable and agreed to sell for as little as half the pre-auction target.
Twenty items, including paintings by Anish Kapoor, Roy Lichtenstein, Warhol, Freud and Jean-Michel Basquiat, stayed on the shelf.
Top Section
Explore Business Standard