Christie’s £6m Partridge sale – New York in May

The sale, which forms part of Mark Law’s acquisition arrangements for Partridge, will offer a mix of European furniture, silver, pictures, porcelain and clocks with a low estimate of £6m. The pieces, chosen in consultation with Christie’s, constitute about a third of the Bond Street galleries’ display, from which they have already been removed.

Amor Holdings Ltd was the financial vehicle Mr Law set up specifically for the deal. The proceeds of the New York auction will be used to pay back the £4m Christie’s put up to fund the initial stage of Amor Holdings Ltd’s takeover, with any extra, once costs and expenses have been deducted, being split between shareholders and the company if net proceeds exceed £4m.

The news comes amid claims from at least one City analyst that the take-over offer made by Amor Holdings Ltd gave Partridge shareholders “a lousy deal”. But Mr Law, who says Partridge are already replenishing stock at sales, defended his position, saying that his offer was better than the alternative of having to liquidate the company. He says he also effectively has to underwrite the New York sale in the unlikely event that it does not meet estimate.

Chairman John Partridge, who put the business up for sale in February, has recommended the offer to shareholders in the absence of any “attractive alternative”. He and his family have already agreed to sell their 59.3 per cent stake.

In the event that the takeover is approved following the December 30 shareholder meeting, Mr Law will then have to work towards making an acceptable offer for the rest of the firm within four years. Amor Holdings Ltd’s exposure under the deferred offer is worth a minimum of just under £4.3m and a maximum of just over £8m.

The downside for shareholders is that the deal effectively bars them from disposing of the remainder of their holdings elsewhere – and there is little hope of any dividend during that time. On the other hand, a weak market performance in recent years has quashed dividends anyway, with little prospect of a healthier return in the absence of a deal.

While Amor Holdings Ltd are obliged to make the offer within four years, City regulators warn that there is no guarantee that they will be able to do so, although they have confirmed that the company’s directors are currently capable of meeting their commitments under personal guarantees.

Mr Law fought back against his detractors, telling ATG that he had gone into the deal because he was confident Partridge had great potential as a brand and argued that he had effectively staked his own future on its long-term success.