In a statement regarding the filing Paddle8 said: “Paddle8 is undertaking Chapter 11 bankruptcy protection to protect the company and its assets against aggressive legal manoeuvring that would be harmful to our clients and partners.
“The safe harbour of Chapter 11 allows us to work cooperatively with our senior creditors to prioritise the nonprofits with whom we have long standing relationships. We are not shuttering the business. This decision was made to protect our partners and preserve the business.”
According to press reports last week the company was the subject of a legal action relating to a charity auction.
Paddle8 was launched in 2011 and held online-only sales of contemporary art, design, photography and jewellery. It was briefly owned by Auctionata before becoming a separate entity again in 2017 after Auctionata itself closed down.