WSJ: Is Aubrey McClendon Selling Off His Prized Wine?

Oh my God, it IS that bad over at Chesapeake! Wonder if Mr. McClendon’s [hopefully legal] domestic help is next?

From the Wall Street Journal:

Even though the market for collectible wines is slumping, Sotheby’s recently announced it will sell off 9,000 bottles in two auctions in March and April. The sale is titled “Classic Cellar from a Great American Collector.”

It is large by any standard. But what really caught my eye was the statement in Sotheby’s news release that the sale is a “single owner collection,” meaning that it is all coming from one seller’s cellar.

Who is this “Great American Collector?” And why would he or she try to unload 9,000 bottles at a time when wine prices are collapsing?

Sotheby’s won’t say. Jamie Ritchie, head of Sotheby’s North American wine department, was uncharacteristically silent when I asked about the seller. “Sorry, I just can’t comment,” he said.

According to three people familiar with the auction, the seller is Aubrey McClendon, chief executive of Chesapeake Energy. These people say at least one other broker kicked the tires on Mr. McClendon’s collection before it went to Sotheby’s.

Mr. McClendon is one of the top wine collectors in the country, known for his love of Burgundy and Bordeaux. He also is known for his cash crunch. Last fall, he was forced to sell 94% of his stake in Chesapeake to pay back margin loans. Mr. McClendon’s stake once was valued at more than $2 billion. So it wouldn’t be surprising if he were to want to liquidate some of his, er, liquid assets.

Mr. McClendon, through a spokesman, didn’t respond to a request for comment.

Sotheby’s says it expects the sale to fetch at least $5 million–not much for a former billionaire, but these days every little million helps. Read more…