Death, divorce and debt – these are the legendary three Ds that generally propel items across the auction block. In the case of Pioneer Auction, a firm tracing its roots to old-fashioned Yankee auctioneering, its own debt seems to be pushing the business itself toward the gavel. Ironically, circumstances have wrenched the gavel away from its owner.

Pioneer, which filed for Chapter 11 bankruptcy protection on October 15, faces complaints by many of its clients who consigned items to be sold and now say they are owed money that has not yet been paid. Lawyers involved with the bankrupt firm reply that those customers will have to get in line along with other unpaid creditors.

Gallery owner Bruce Smebakken, who acquired the business in 1986 and purchased the property in 2000, was hoping to sell it, but even that may not be an option since control is in the hands of court-appointed trustee Joseph Collins of Springfield, Mass., who recently filed a motion to put Pioneer into Chapter 7.

Moving from Chapter 11 status toward Chapter 7 has meant that Pioneer had to cancel two auctions it had scheduled for November, including its popular Thanksgiving weekend sale. “The trustee decided to close down the operation, saying that he doesn’t believe it can be profitable,” said Smebakken.

Collins, the trustee, said that a hearing date has not yet been set for his motion to convert the bankruptcy protection. He declined to provide details on why he believed the business could not be profitable going forward, other than to say that thorough research led him to reach that conclusion.

As for unpaid consigners, “They will be given the opportunity to file claims, and their rights will be determined by the bankruptcy court,” said Collins.

Smebakken said he shares his customers’ frustration in being told they will have to file their claims against a bankruptcy. “My sympathy goes out to the consigners,” he said. “I’ve been in business for 35 years, and this is devastating to me and to them. Unfortunately, I can’t do anything about it. Ultimately, I have to go along with whatever the courts decide.”

The auctioneer said that he made a poor decision in going from renting the facility to purchasing it at the end of 2000. His business partner, who initially was totally in favor of making the move, backed out, Smebakken said, and, facing an impending rent increase in the facility he was then in, he chose to go ahead with the purchase on his own.

“I try to return calls, but everything is now referred to the attorney or to the trustee,” said the auction house owner. “A lot of people have shown their support, but I can’t blame some of them for being angry.”

A few customers said they would not have consigned items to auction at Pioneer had they known it was in trouble. “What’s particularly upsetting to me and to others is that we were given no indication that there was any problem,” said David Waldfogel, an attorney based in Hadley, Mass., who last summer consigned a set of silver flatware for a Labor Day auction at Pioneer. “When I called on September 8, I was told the flatware had been sold for $200 – even though I had a reserve of $300 on it. They said they would honor the reserve price and that I would get a check in about six weeks,” said Waldfogel. By mid- to late October, he had received no payment, and now he is in line with Pioneer’s other creditors.

Similarly, Selina Kerr of Williamsburg, Mass., consigned some jewelry and other items back in May, primarily to fund shelter expenses for a cat she had inherited after a dear friend had been killed in an automobile accident. “I tried and tried calling the auction house, but could never get anybody to tell me anything,” said Kerr.

Times were not always so tough for Pioneer. On the company’s website is an image of gallery owner Smebakken beaming with pride as he stands next to an 1857 painting by Jasper F. Cropsey, which brought a hefty $500,500 on January 1, 1995. Known for conducting well attended New Year’s Day sales, Smebakken similarly entertained a standing room only crowd on January 1, 2001, that witnessed a Gustav Stickley sideboard, circa 1904, selling for $38,000.

Pioneer’s last auction was on October 20, an ephemera, collectibles and toy sale.