Simon Lee Gallery Limited – in Administration (‘the Company’)

 

As you may be aware, Danny Dartnaill, Christine Francis and Matthew Tait were appointed Joint Administrators of the Company on 11 July 2023.  The Joint Administrators are working as swiftly as possible to gather information regarding the Company’s financial position, including artworks either owned by the Company (in its own right or jointly with others) or held by the Company on behalf of third parties.  The Joint Administrators appreciate that parties who transacted with the Company may have concerns regarding their position and art works that they own that are not in their control.

 

The Joint Administrators immediate focus is to confirm the location of all artworks and ensure these are safeguarded.   

 

To help allay these concerns and to provide a fuller understanding of the position (and how you may help) the Joint Administrators have compiled a series of frequently asked questions as set out below. 

 

Where information is requested and you are corresponding with us as a representative of a party that transacted with the Company, please provide details of your authority in this respect. 

 

Consignment agreements

 

1. I have a consignment agreement with SLGL, what do I need to do?

 

We are reviewing each agreement with the assistance of solicitors to understand the contractual terms. This is an extensive exercise and we are working as quickly as we can. We are also collating and confirming information as to the storage location of items held on consignment and the contractual position with the storage companies.  

 

To assist us in our review and to ensure that we have up to date information, if possible please provide the following information to simonleegallery@bdo.co.uk

 

(i)             a copy of the signed consignment agreement(s) between you and the Company;

(ii)            a schedule of the artworks that you have consigned to the Company and which it holds on your behalf under the terms of the consignment agreement(s);

(iii)          details of any balances that are owed to you in respect of art works that you are aware the Company has sold on your behalf; and

(iv)           confirmation as to whether you have previously notified the Company that you wish to end the consignment agreement(s) and if so, copies of the relevant correspondence in this respect.

 

1. Where are the art work(s)?

 

We appreciate that you will have concerns about the location of artworks that the Company holds on your behalf and we are in the process of confirming the information held by the Company. We are liaising with employees and external storage providers to confirm the relevant locations and ensure these are safeguarded.  Steps have also been taken to provide additional security at the Company’s trading premises to safeguard items located there.  

 

1. Are the artwork(s) insured?

 

We have ensured that the Company’s insurance policy remains in place following our appointment.

 

1. When will the artwork(s) be returned to me?

 

As noted above, we are reviewing consignment agreements with the assistance of solicitors and will revert to you with an update in as soon as possible. This may necessitate a request for further information from you.  You will appreciate that we are receiving a large volume of similar requests and your patience as we work through the information is requested. As Administrators appointed by the High Court we have very specific duties to ensure that we act with the best possible information which requires us to confirm it.

 

1. If I pay the storage and shipping fees, can the artwork(s) be released to me now?

 

We would be happy to arrange a call to discuss options for releasing consignment works held in storage once we have review the information requested above.

 

Please do not contact storage agents directly in this regard. We have already done this.  We are in discussions with each of the Company’s storage providers and they will not release works without the Joint Administrators’ approval in line with our duties.

 

1. Is the Company still trying to sell the artwork(s)?

 

Please be assured that works held on consignment will not be sold by the Joint Administrators without the prior consent of the consignor.

 

 

Joint ownership agreements

 

1. I jointly own an artwork with the Company, what do I need to do?

 

To assist us and our solicitors in reviewing the joint ownership of such artworks and to ensure that we have up to date information, please provide the following information to simonleegallery@bdo.co.uk

 

(i)             a copy of the signed joint ownership agreement(s) between you and the Company;

(ii)            if no formal joint ownership agreement was in place, copies of any other relevant documents (including correspondence) setting out the terms and basis upon which joint ownership was agreed;

(iii)          details of the artwork(s) that you jointly own with the Company, including when originally purchased and any agreements with the Company as to storage requirements whilst the art work was in the Company’s possession;

(iv)           confirmation as to whether you now or have previously notified the Company that you wish to purchase the Company’s share of the artwork(s) and if so, copies of the relevant correspondence in this respect.

 

1. Where are the work(s)?

 

We appreciate that you will have concerns about the location of items that the Company jointly owns with you and has possession of.  Our focus is to confirm the information contained in the Company’s stock records by liaising with employees and external storage providers to confirm the relevant locations and ensure these are safeguarded.  Steps have also been taken to provide additional security at the Company’s trading premises to safeguard items located there

 

1. Are the artwork(s) insured?

 

We have ensured that the Company’s insurance policy remains in place following our appointment.

 

1. Can I purchase the Company’s share in the artwork?

 

We would be happy to arrange a call to discuss offers for purchasing the Company’s share in any jointly owned art works. Please email simonleegallery@bdo.co.uk to arrange a call.

 

1. Is the Company still trying to sell the work(s)?

 

Please be assured that jointly owned artworks will not be sold without the prior consent of the joint owner(s).

 

 

Purchasers

 

1. I purchased and paid for an artwork, but it has not been shipped to me. What do I need to do?

 

We are reviewing with our solicitors sales entered into by the Company where the purchase process may not be fully complete.  To assist us in our review and to ensure that we have up to date information, please provide the following information to simonleegallery@bdo.co.uk

 

(i)             details of the artwork(s) you have purchased;

(ii)            a copy of the invoice for the artwork(s) issued by the Company and proof of payment, including details of the bank account to which the payment was directed;

(iii)          copies of the relevant correspondence with the Company regarding shipping and release of the artwork(s) to you.

 

1. When will the work be shipped?

 

We are reviewing the position with our solicitors to confirm whether the sale process has been completed and title passed to the buyer. We will revert to you with an update in due course, which may include a request for further information.  

 

1. Where is the work currently?

 

We appreciate that you will have concerns about the location of items that the Company has sold but not yet released to you.  Our focus is to confirm the information contained in the Company’s stock records by liaising with employees and external storage providers to confirm the relevant locations and ensure these are safeguarded.  Steps have also been taken to provide additional security at the Company’s trading premises to safeguard items located there

 

1. If I pay the storage and shipping fees, can the work(s) be released to me now?

 

We would be happy to arrange a call to discuss options for releasing purchased artworks held in storage once we have completed our review with our solicitors.

 

Please do not contact storage agents directly in this regard.  We are in discussions with each of the Company’s storage providers and they will not release works without the Joint Administrators’ approval.

 

1. Can I apply for a refund?

 

This depends on the outcome of our review and we suggest that you wait until it has completed. We will confirm the position to you on an individual basis.

 

Creditors  

 

1. I am owed money by the Company, what should I do?

 

If you have not yet received a formal notice of appointment to creditors either by post or email, please contact simonleegallery@bdo.co.uk requesting a copy of this notice and confirming the relevant contact address that should be used for any postal communications going forward.

 

The notice to creditors includes a proof of debt form which must be completed and returned to BRCMTLondonandSouthEast@bdo.co.uk with any supporting documentation in order to register your claim in the Administration.

 

1. When will I be paid?

 

The Joint Administrators are reviewing the Company’s position and managing its affairs, business and property with a view to achieving the best outcome for creditors as a whole. At present, it is too early to comment on the expected returns to creditors.

 

The notice to creditors includes login details for our creditor portal where certain documents concerning the Administration will be available to download.  The Joint Administrators’ Proposals, which will include details of the actions taken since our appointment, proposed strategy and an estimate of the potential return to each class of creditor, will be uploaded to the creditor portal within 10 weeks of the date of appointment, being 11 July 2023.