Who was holding the fire sale to end all fire sales last week? None other than Drexel Burnham Lambert, the investment house whose junk-bond financing once helped corporate raiders take over and auction off entire companies. It was another humiliating spectacle for Drexel, which filed for Chapter 11 bankruptcy protection in February. More than 10,000 people picked over brass coat racks, personal computers and desks during a three-day pre-auction inspection. And in just 11 hours the remains of the firm, more than 4,000 lots, were sold off to bidders in New York. Several million dollars were raised, though auctioneers would not disclose a figure.
Drexel needs every cent. The firm, which is trying to come back as a smaller operation, still owes creditors massive sums. In London, Drexel’s branch office sold off even more lavish trappings: Asian art, a 1,000-piece set of Royal Doulton fine bone china and eight champagne buckets. Many British bidders questioned Drexel’s ostentatious taste. One tapestry that the firm bought for $6,000 brought only $180 in London. Yet, after all, no one knows better than Drexel how quickly junk can lose its value.
