The longest lived member of the retail trade, with roots extending well back into the 19th century, surrenders its independence through acquisition by the Fine Art Auction Group. Certainly, with Mallett’s operating statement so awash with red ink it resembled the floor of an abattoir, it is a wonder that they were able to continue to carry on in business. Their capital structure was replenished through sales of premises locations in the West End and a number of stock reduction sales (‘rationalizing inventory’ this was called- doubtless a less pejorative phrase than ‘dumping stock’) but one wonders, at this stage, what Mallett really has left to offer. Presumably the acquisition price includes an expansive view of financial blue sky.
Arch comments aside, most of us in the trade, while sniping at Mallett as the tony province of oil sheiks and Russian oligarchs and all other manner of the parvenu, will under a modest amount of grilling admit that, to a very great extent, Mallett amounts to the gold standard in the trade. I can think of very few items resold within the time at least since we’ve been active that did not prominently mention a Mallett provenance if there was one, which mention invariably resulted in a sale for a premium price.
With all that, Mallett has been first and foremost a retail dealer, prominent in the West End, albeit now removed from Bond Street, and on Madison Avenue. As well, they’ve been notable participants in all the best fairs, and are one of the founders of Masterpiece, arguably London’s premier fair. What, then, makes this inherently retail dealer an attractive acquisition target for a company that is essentially an aggregate of salerooms? Hard to fathom, but presumably there remains some drag left in the Mallett name, but how that contributes to the bottom line is impossible to assess. Moreover, with the core business of Mallett continuing to leak cash out the bottom at a much faster rate than it could be poured in at the top, a more patiently pursued acquisition might have been able to strike a deal with the eventual receivers.