Sotheby's Financial Struggles

Sotheby's is currently facing significant financial difficulties attributed to rising debt and the impact of a downturn in the art market. The auction house, acquired by billionaire Patrick Drahi for $3.7 billion in 2019, has not been able to recover from the economic slowdowns affecting high-end art sales. Recent reports indicate that Sotheby's has resorted to offering IOUs instead of bonuses to employees, raising concerns about its cash flow and ability to meet obligations. Despite a temporary boost during the pandemic, the company's profitability has been threatened by a cautious market and an impending debt repayment due in 2027.