News and Opinion — Year 2018

The administrators of high-profile insolvent auction house Mossgreen have been blocked by the federal court from charging clients a $353 art collection levy for the return of unsold consignments. BDO Australia administrator James White told the federal court that Mossgreen, as of last Thursday, had $2.8 million of assets and $14.8 million of creditors including a secured creditor to the value of $6 million. The auction house went into voluntary administration last December with more than 4000 lots in its possession. Justice Nye Perram today found the administrators couldn’t order people to pay for the return of their goods. [Subscription required]

WA’s consumer watchdog is investigating the sudden closure of a Perth auction house that has left some sellers thousands of dollars out of pocket. Consumer Protection said Hayes Auctioneers, which specialised in selling antiques and artworks, had closed because of financial difficulties. It believes up to 40 sellers have not been paid after their items were sold on consignment. One seller reported being owed $13,000, while two others had lost $5000 each. An investigation was under way to determine if the Australian Consumer Law or the Auction Sales Act had been breached.

RELATIVES of Ned Kelly successfully bid $55,000 for an image of the bushranger because “it was the right thing to do as a family”. The 1874 photograph of Kelly in a boxing pose was predicted to sell for $20,000 to $30,000 at auction but a fierce contest between the outlaw’s family and a North East consortium saw it knocked down for $55,000. Kelly’s great grand niece Joanne Griffiths said: “We didn’t want to go quite that high, but it had to be done.

A large number of Mossgreen consignors are rapidly preparing their case to challenge the collection fees being charged by the administrators of the collapsed Australian auction house.? A court hearing in Sydney has now been set for next week where BDO Australia will seek formal approval of their charges of $353.20 (around £200) per lot for vendors to collect their own goods.The hearing will take place before or soon after March 29. Consignors of items that were either unsold or awaiting sale at the time the firm folded in December have been given short notice to arrange their arguments and evidence. They have until 5pm on March 27 to lodge their objections and any documents with the court.

The administrator of collapsed auction house Mossgreen is seeking a court order to justify its $353 art collection levy amid the regulator inquiring about the levy. In a letter to Mossgreen clients on Friday, BDO said it would file an action in the Federal Court by Tuesday and it would continue to hold onto the artwork and collectibles subject to court orders. BDO has also extended the time for payment of the levy and collection of items from March 10 to March 29, saying it was "unlikely that [court] directions will be received prior to the final date for collection". (Subscription required)

Amid his separation and divorce from his wife, Russell Crowe is sending a huge selection of over 200 pieces of memorabilia, art, and jewelry to auction for a special sale at Sotheby’s Australia aptly titled “The Art of Divorce.” The Oscar-winner married Australian actress and singer Danielle Spencer in 2003. The couple separated in 2012, although the couple’s divorce was only recently finalized. ndeed, the auction includes some pricey items, including 19 collectible guitars. Crowe is also offering his collection of jewelry and watches by Asprey, Cartier, Chanel, and Chopard including a 5.13-carat radiant-cut fancy yellow diamond surrounded by marquise-cut white diamonds set in 18-karat white gold and platinum.

Administrators for Mossgreen have told clients of the collapsed auction house they must pay almost $1.8 million in fees before they can have their goods returned.

Clients are furious and confused as to whether they can be charged a fee – levied at $353 per lot – to have their own property returned. The decision affects clients of Mossgreen who consigned artworks and other collectibles, but whose items were not sold before the auction house went under and hence remain in Mossgreen's possession. Clients who consigned multiple items are being billed thousands of dollars.

"I think it's highway robbery," said Tom Lowenstein, the high-profile accountant who helps manage the affairs of artist Charles Blackman among many others.

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A rare 13th-century Bible has sold for more than $100,000 at a Wellington's Dunbar Sloane auction house. Handwritten in Latin, the Bible's 298 pages are worn and delicate, but still feature bright and elaborate red and blue detailing. Although the bidding started at $15,000, nine overseas bidders pursued the book, which led to a United States buyer winning the auction with a final sale price including buyers premium of $101,000. The bible had been estimated $NZ15,000-25,000.

One of country's most well-known auction houses is in liquidation. It follows the Australian owner of Mossgreen-Webb's being put into voluntary administration just before Christmas. Melbourne-headquartered Mossgreen, which bought Webb's auction house in Parnell in 2015, owes A$12 million ($13.1m) to 400 creditors. Administrators, James White, Andrew Sallway and Nicholas Martin of BDO in Australia, said last week that Mossgreen's assets amount to about A$3m and that they do not yet have details of any New Zealand creditors.

Mossgreen art auction house and gallery has debts of $12 million and when asked about the chances of creditors getting their money back, a former director said "it doesn't look good". Administrators BDO told 50 anxious people at the first creditors' meeting there were "circa 400" owed money and that Mosssgreen had assets of just $3 million. Toorak businessman Jack Gringlas? confirmed to Fairfax Media that his family company Jadig Investments is the biggest creditor, being owed $6 million. The Age understands another vendor is owed $400,000 from art and furniture sold at auction.