TORONTO—After months of financial hardship, the beleaguered Toronto-based auction house Ritchies has been forced into bankruptcy by its landlord, Hildegard Hammer, who alleges Ritchies owes her $131,000 (U.S. $123,000).

The house ran into trouble this summer, when it reportedly failed to pay an estimated $750,000 to consignors of artworks sold on May 25 in association with Sotheby's. The company's chief financial officer, Fraser Elliott, resigned in June; the president, chief operating officer, and sole minority stakeholder Stephen Ranger left in July 28; and on July 31, 27 employees were let go. Since then, the house has canceled two sales, scheduled for October, and has yet to pay consignors of works sold in May (the consignors of the Sotheby's joint sale have been paid by that house.)

Hammer's application to order bankruptcy, filed Oct. 6, was approved yesterday, and the Ritchies building has been turned over to a trustee. According to court documents, Ritchies owes $300,000 to one secured creditor and $1.5 million to unsecured ones.

Read more at the Globe and Mail.