Market slump paints sorry picture for art auctions

We have begun to implement a companywide reorganisation,which includes significant staff reductions,not renewing many consultants contracts and continuation of other cost-reduction initiatives,that will ensure we remain competitive and profitable in 2009, Christies said.

In the last months,auction prices dropped together with financial markets,ending a decade-long boom in the art market that was buoyed by record bonuses paid to financial executives.

Lehman plans to sell about 8 million in artwork to help pay its creditors,but if a recent auction by the banks former chief executive and his wife is anything to go by,it might be a challenge to attract buyers as many still wait for bigger bargains.

A two-day sale of paintings and jewels in Dubai by Christies in October yielded only about half of what the auction house expected. A sharp drop in the price of oil since its peak in July made the region,identified by Christies as a growth market,less open to investing in art.