Phillips auction house has welcomed back Bernd Runge, who previously served as CEO from 2009 to 2013, now taking on the role of Chief Operating Officer.
This leadership shift comes at a crucial time for the company as it grapples with recent industry challenges.
Runge’s Background and Previous Tenure
Runge, who hails from Germany and boasts extensive experience in media, officially started his new position at the end of last month after wrapping up his tenure at Interview Magazine.
His return was first reported in Puck’s “Wall Power” newsletter, drawing attention to Phillips during this pivotal moment.
Before his departure from Phillips, Runge had strategically directed the company until its acquisition by Russia’s Mercury Group in 2017.
He then joined Mercury’s executive board in 2018 but decided to step down in October 2020, according to his LinkedIn updates.
Financial Challenges Facing Phillips
Currently, Phillips Assets Limited, which oversees operations in the UK, Europe, and the USA, is facing significant financial hurdles, with a 21 percent decline in turnover, bringing its revenues to just under £100 million for the period between 2022 and 2023.
The financial landscape appears increasingly challenging, as losses have skyrocketed from £17.4 million in 2021 to an alarming £50 million this year.
In a detailed report, Phillips’s CFO cited a slowdown in sales growth as a primary factor contributing to these deficits.
Notably, Phillips isn’t the only auction house experiencing this trend; competitor Christie’s also reported a drastic profit decline, with their earnings slipping from £125 million in 2022 to £74 million in 2023.
However, an audit confirmed that Christie’s remains on solid financial footing through 2024 and 2025.
Leadership Changes and Future Outlook
Runge’s appointment follows the resignation of Ed Dolman, the previous CEO and executive chairman, who has been instrumental in the organization since 2014.
Dolman will transition into a consulting role by May 2025 but will continue to engage with the arts community, although specifics about his next steps are yet to be revealed.
Additionally, Amanda Lo Iacono, deputy chief executive, will also be leaving after a successful eight-year career with the auction house.
While a spokesperson for Phillips declined to comment on these leadership changes or Runge’s return, there is a sense of excitement surrounding this new chapter.
The organization is poised to embrace the future with renewed energy and hope despite the challenges ahead.