Former Phillips CEO Returns as COO Amid Financial Losses
Phillips auction house has welcomed back Bernd Runge, a seasoned executive with a background in publishing, as its new Chief Operating Officer (COO). Runge, a German citizen, previously held the position of CEO at Phillips from 2009 to 2013 before embarking on other ventures in the industry.
Runge’s reappointment to Phillips comes at a crucial time for the auction house, which is undergoing a significant leadership transition. His return to the company marks a strategic move as Phillips navigates financial challenges and aims to steer back on course under his experienced guidance.
Runge’s Background and Reentry
After parting ways with Interview Magazine, Runge stepped into his new role as COO at Phillips, a pivotal position that will see him bring his wealth of experience and leadership skills back to the company. His background in publishing, including stints at Condé Nast and Interview Magazine, provides him with a unique perspective that can be valuable in the art auction industry.
Runge’s previous tenure as CEO at Phillips showcased his ability to lead and drive the company towards success. His return signifies a rekindling of that leadership and vision, offering a sense of stability and direction during a period of financial uncertainty for the auction house.
Financial Challenges and Industry Trends
Phillips Assets Limited, the holding company overseeing Phillips’s operations in the UK, Europe, and the US, reported a significant decline in turnover over the past few years. The company saw a 21 percent drop in revenue from 2022 to 2023, with losses mounting to £50 million by the end of the fiscal year.
The downturn in revenue can be attributed to various factors, including declining sales growth and market trends within the art auction industry. Competitors like Christie’s also faced challenges, with profits decreasing from £125 million to £74 million over the same period. Despite these setbacks, Christie’s remains optimistic about its financial outlook through 2025.
Leadership Changes and Future Outlook
Runge’s appointment as COO follows the departure of Ed Dolman, Phillips’s former CEO and executive chairman, who will transition to a consulting role in the coming months. Dolman’s resignation, along with the departure of Amanda Lo Iacono, Phillips’s deputy chief executive, signals a period of change within the company’s leadership structure.
As Phillips looks towards the future under Runge’s leadership, the company remains focused on overcoming financial challenges and regaining its footing in the art auction market. With a seasoned executive at the helm, Phillips is poised to navigate these turbulent waters and emerge stronger on the other side.
In response to inquiries about the recent leadership changes and Runge’s appointment, a Phillips spokesperson declined to provide any further details at this time. The company’s focus is on charting a path forward under new leadership and addressing the financial obstacles that lie ahead.
The return of Bernd Runge to Phillips as COO signifies a new chapter for the auction house, one that will be shaped by his experience, vision, and strategic leadership. As the company faces financial losses and industry challenges, Runge’s reentry offers a sense of hope and direction for Phillips’s future.
