By Mail Foreign Service
Last updated at 6:50 PM on 25th February 2009
Photographer Annie Leibovitz has borrowed £10million against some of her most famous pictures to pay the mortgages on all her homes.
The artist, 59, has become so concerned with her mounting debt, accumulated on properties she inherited in 2004 after the death of her lover Susan Sontag, she has turned to a company that lends money with fine art as collateral.
Documents seen by the New York Times reveal she secured the funds by giving the company, Art Capital, ownership of all her work - past and future - until the loan is repaid.
Victim of the credit crunch? Annie Leibovitz with her famous portrait of a pregnant Demi Moore
The images include those taken for the 1981 Rolling Stone front cover of John Lennon and Yoko Ono shot on the day of Lennon's death, the photograph of a naked and pregnant Demi Moore, images of Michelle Obama for Vanity fair and of a semi-nude singer and actress Miley Cyrus taken for the same magazine.
Ian Peck, a co-owner of Art Capital, said Leibovitz was not alone in choosing to use her work to raise money at a time when share portfolios are plunging and homes have no equity left to borrow against.
One of Leibovitz's photographs for the Walt Disney Year of a Million Dreams campaign shows actress Scarlett Johansson, depicting Cinderella
'What's amazing is that individuals and institutions who previously we thought were untouchable are being deeply affected.
Leibovitz has shot Michelle Obama for this month's cover of U.S. Vogue magazine
'People who were truly enormous financially are now scrambling,' he said.
But he said many people found it very difficult to part with art work during times of hardship: 'It's akin to giving up your home, particularly for people who have built up collections over many years. People don't feel emotionally about stocks and bonds, but they certainly do over art.'
His company, dubbed an art pawn shop, issues loans of $500,000 (£350,000) or more at interest rates from 6 per cent to 16 per cent. Art becomes subject to sale if owners default.
The company has recently taken in - and put into secure and climate-controlled specialist art warehouses for safekeeping - pieces by Willem de Kooning, Mark Rothko, Andy Warhol, Henry Moore and Picasso.
Clients have also borrowed against vintage film posters, antique teddy bears and valuable scientific instruments.
Mr Peck said only about one in ten of the deals end in default: 'Our aim is to avoid defaulting at all costs. Given the trouble involved in a default, it's better karma and business not to.'
Enlarge
Ms Leibovitz greets the Queen at a Buckingham Palace reception
4 comments:
On one hand, it's a bit hard to feel sympathy for someone who has to give up their own work (this is what she does for a living) to pay 10 million pounds on properties, when we're having trouble schlepping it out down here in the mud. Why not sell some of the properties instead? Might not pay everything but some.
On the other hand you hate to see anyone struggling for their home.
But then again I doubt she's eating macaroni and cheese or pan fried hamburgers everyday.
I've always liked most of her photos. I remember the controversy that Lennon cover caused. Nowdays it's lame in comparison to what's out there.
Maybe a less extravagant lifestyle?
I feel bad but not THAT bad.
An upper crust down on her luck? Ohhh... cry me a river.
Notwithstanding her rather, ah, androgynous appearance, I think this was a good deal for her.
The real estate may be underwater and she does not want to take a loss. So, unless the liens extend to the "after-created works" (like a "floating" lien on inventory extends to "after acquired property"), she is still free to create "unencumbered" wealth.
She's young - she can create great stuff, pay off the liens, and own the real estate free and clear. Smart move. Musta had a good lawyer!
Ro
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