Tiger Group Reaches Major Milestones at Audio/Visual Auctions & Private Treaty Sales in First Half of 2022
Number of buyers at events for PRG and Red Star Pictures surplus gear jump 50% from auctions held in 1st half of 2021; bankruptcy auction of assets from Pacific Theatres achieves 99% sell-through rate.
LOS ANGELES (6/23/22) – Tiger Group’s Commercial and Industrial (C&I) Division saw a record number of sales registrants and buyers at its sales for audio/visual and movie theater assets in the first half of 2022, which played a major factor in achieving 96 percent to 99 precent sell-through rates at its auctions and private treaty sales during that timeframe.
The results were driven by continued high demand for professional-grade audio/visual gear, a renewed interest in movie-going by consumers, and supply chain issues that continue to make buying secondary market equipment an attractive option.
Interest in digital and film cameras, as well as lenses, fueled successful online auctions in April and June for surplus gear from rental houses PRG and Red Star Pictures. Specifically, Tiger enjoyed a 50 percent jump in the number of buyers participating in those sales compared with its AV auctions in the first half of 2021.
“Prices remain strong, yet benefit the purchaser as new equipment is difficult to obtain due to continued supply chain issues,” said Jonathan Holiday, Director of Business Development for Tiger C&I and leader of its audio-visual (AV) practice. “It all comes down to content and this industry continues to be driven to meet this high demand, so purchasing gear in secondary market auctions presents an incredible opportunity.”
Holiday added that strong participation in the AV auctions has also been buoyed by Tiger’s reputation as “a trusted source for professional-grade gear.”
Rental companies, studios, independent filmmakers, and resellers bought the bulk of the equipment offered in the PRG and Red Star sales, reflecting the continued demand for content in the industry, Holiday said.
Tiger saw record levels in several metrics for its AV auctions during the first half. A major highlight came from the April auction of live event and production rental gear from North American leader PRG, where new highs were set for registered bidders at 520, along with the number of registrants new to Tiger’s database and total buyers, resulting in a 96 percent sell-through rate for the gear.
Registrants for the PRG event came from 36 states and 17 countries – another new high for Tiger’s AV practice. In the end, buyers hailed from six countries: the U.S., Canada, Israel, Australia, Trinidad and Tobago.
Tiger’s June auction of gear from Red Star Pictures, a longstanding supplier of rental lighting, grip and production equipment, delivered a sell-through rate of 97 percent. The company registered 400 potential bidders. Buyers came from 20 U.S. states, as well as the Canadian provinces of British Columbia and Ontario.
“The results of this initial sale with Tiger far exceeded our expectations,” said Travis Moody, President of Red Star Pictures. “This proved to be a very efficient way for us to clear out surplus gear to make room for new equipment, without the types of issues we would have encountered doing it on our own. We look forward to working with Jonathan and his team on future sales.”
Reflecting on the demand seen in the PRG and Red Star sales, Holiday said: “As we move into the second half of the year, rental companies will be extremely busy and will need gear to fill the needs for the production season.”
Another strong point for Tiger’s AV practice this year has been its work on behalf of the secured lender for Pacific Theatres, formerly one of North America’s largest movie chains. Pacific filed for Chapter 7 bankruptcy in March 2020, due in part to the impact of Covid on the movie industry.
Tiger’s February auction of assets from an initial group of closed theaters drew bids worldwide, with 99 percent of the lots sold. Buyers mostly included theater owners, live event production companies and rental houses.
The online auction drew thousands of page views and bids, with individuals from 57 countries watching the event live. The winning bidders came primarily from the United States and Canada. Demand was especially strong for late model digital and laser projectors, media servers and amplifiers, Holiday noted.
Separately, Tiger sold five of the California-based chain’s theaters on a bulk basis to other operators through auctions and private treaty sales. These included theaters in El Segundo and Pasadena, Calif.; Chicago and Winnetka, Ill., and Boston.
With more movie-goers returning to the theaters, Holiday sees the cinema industry bouncing back with strength. “Even though there are fewer theaters than prior to the pandemic, some of the latest new films have been generating very strong box office numbers,” he said, noting
Top Gun: Maverick earned $409.5 million after just 19 days at the domestic box office. “People are eager to finally get out of the house and enjoy a quality film on the big screen. We are thrilled to have helped facilitate the re-openings of the theaters we sold.”