Fortuna Auction House Files for Chapter 11

By Rob Bates | April 08, 2025

Fortuna Auction LLC, a New York City–based auction house that has specialized in jewelry and watches, filed for Chapter 11 on April 1 in New York federal court.

The bankruptcy petition estimated Fortuna’s assets between $100,000 and $500,000, and its debts at $1 million to $10 million.

In a court filing, company manager Herbert Saxon said he founded Fortuna in 2016 with his wife, Maria, as well as Seth Holehouse and his wife, Anna Lin, based on a “transparent, seller-friendly model.”

“By 2019, our auctions were breaking records, investor interest was surging, and a Series A capital raise was gaining serious momentum,” Saxon wrote.

But Holehouse and Lin’s divorce and their subsequent departure from the business hurt Fortuna, as did the COVID-19 pandemic and issues with one of its investors, according to Saxon’s declaration.

Additional setbacks included employees who stole confidential information and Lin starting a “short-lived” competing business, said Saxon. Fortuna turned to merchant cash advance (MCA) lenders, but its new funder imposed high interest rates and tough terms that left the auction house unable to pay clients who consigned merchandise.

“The delayed payments to consignors—coupled with rumors fueled by former employees and angry clients—sparked a vicious cycle of fear and distrust,” Saxon wrote. “Consignments dried up, revenue dropped, and our ability to meet existing obligations eroded….

“While several investors have recently expressed interest in supporting the business during this tough time, none have moved forward quickly enough,” he continued. “When we raised the possibility of a formal restructuring to eliminate the burden of predatory debt, that interest was reactivated.… At this point, bankruptcy protection represents the company’s only viable path forward to preserve operations, protect creditors, and restore long-term value.”

Saxon stated in the filing that the company intends to fully pay back its consignors. He could not be reached for further comment.

(Photo: Getty Images)