Luxury king Bernard Arnault is giving up trying to win over the rich art crowd with his upstart Phillips auction house.
The billionaire had plowed hundreds of millions into private side-deals with art collectors just to sell their treasures at Phillips.
But his lack of major pieces to sell and an absence of posh premises like rivals Sotheby’s and Christie’s got a cool reception from art society.
Arnault’s company, LVMH Moet Hennessy Louis Vuitton SA, said yesterday it sold its majority control of Phillips to its two directors – veteran art experts Simon de Pury and Daniella Luxembourg.
They’ll take over Arnault’s 43 percent of the auction house. Arnault will keep 27.5 percent. Terms weren’t disclosed.
Pury and Luxembourg previously held 30 percent. Arnault bought Phillips in 1999 for about $79 million.
LVMH, also hurting from a slowdown in luxury goods sales, said Phillips won’t affect its bottom line in 2002.