German based company Auctionata Paddle8 AG has filed for insolvency protection and plans to separate Paddle8 through an investor buy-out supported by its New York-based management.
In a statement it said: “The parent company is in several active conversations with promising investors to recapitalise, fund Auctionata’s strategic development, and further develop its powerful technology platform.”
Thomas Hesse, who took over the position as chief executive of Auctionata Paddle8 from Auctionata-founder Alexander Zacke in September 2016, said: “The proceedings and the separation will allow each brand and business to realise their potential and are ultimately the best way forward to protect our assets and employees.”
The company said Paddle8 operations are not subject to the insolvency proceedings. Auctionata will also continue to run auctions and sell merchandise under a "special protection regime".
To read more about the story see ATG newspaper next week.