Australian buy now, pay later art company with ‘potential to be $1 billion business’ on brink of collapse
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However, it has yet to secure the additional US$5 million in equity that Becker says it needs to be profitable by the end of next year, which will cause the business to shut down.
“Art Money has run out of operating capital and I’ve let down a lot of people who believed in it and me,” Becker wrote in a statement on Art Money’s website late last week.
“After nearly 10 years of growth, we have made the difficult decision to suspend business operations while we recapitalize.
“This means that from 8 June 2024 new customers will not be able to apply for finance and existing customers will not be able to make new purchases. At least for now.”
Becker said all galleries, artists and other sellers are or soon will be paid for art purchased through the business.
He said Art Money is still about 18 months away from profitability and needs new investors to survive.
“We need to recapitalize the business. It has been started from the ground up and we have achieved a lot with a little,” he said.
“While the model is already proven and common in every other industry except art, a business cannot move to the next stage and realize its potential without sufficient equity capital.
“Ideally, it needs a combination of strategic industry partners, a ‘coalition of the willing’ if you will, who are united in growing the art market so that all stakeholders can benefit.
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“I know there is strong public support for the business model, but it would be unfair to ask the community to guide any new investment of this size…
“I really don’t know what’s next.
“We still have the potential to be a $1 billion business if we do it right, which becomes an engine to make a real impact on the lives of many, bringing more art and culture to the world, something I believe the world needs more than now than ever.”
Becker said that while it was not justified, high interest rates, low levels of investment and the global economic crisis leading to less demand for art created the “perfect storm” that led to a pause in operations.
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