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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report - September 23, 1998
Sotheby's Holdings, Inc.
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(Exact name of registrant as specified in its charter)
Michigan 1-9750 38-2478409
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(State or other jurisdiction of (Commission (IRS Employer
incorporation or organization) File Number) Identification No.)
500 North Woodward Avenue, Suite 100
Bloomfield Hills, Michigan 48304
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (248) 646-2400
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ITEM 5. OTHER EVENTS
In September 1998, the Company received final approval from the City of
New York to proceed with its plan to construct a new auction facility
and global headquarters at 1334 York Avenue in New York City. This
planned construction will expand auction, warehouse and office space in
New York City and will enable the Company to consolidate its operations
into one facility. The capital expenditures relating to the new building
construction are estimated to be in the range of $130 million.
Implementation of this plan resulted in a non-recurring charge of
approximately $15.2 million, which was approved by the Board of
Directors on September 23, 1998. Approximately $14.1 million of this
amount is a non-cash charge resulting from the impairment of existing
leasehold improvements and related furniture and fixtures. The remaining
amount of approximately $1.1 million is a provision resulting from the
cost of future rental obligations on rental space in New York City that
will be abandoned as part of the plan.
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SOTHEBY'S HOLDINGS, INC.
AND SUBSIDIARIES
SIGNATURE
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Pursuant to the requirements of the Securities Exchange Act of 1934, the
Company has duly caused this report to be signed this the 23th day of
September, 1998, on its behalf by the undersigned, thereunto duly
authorized and in the capacity indicated.
SOTHEBY'S HOLDINGS, INC.
By: /S/ JOSEPH A. DOMONKOS
Joseph A. Domonkos
Vice President, Controller
And Chief Accounting Officer
