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U.S. Court Orders Seizure of $29 Million in Art From South Beauty Founder Zhang Lan

Published: Mar. 28, 2026 12:03 a.m. GMT+8

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Zhang Lan. Photo: VCG

A U.S. federal court has ordered the seizure of two paintings valued at a combined $29.1 million that were purchased by celebrity restaurateur Zhang Lan, ruling that she fraudulently attempted to hide the assets from creditors.

In a March 24 decision, the U.S. District Court for the Southern District of New York authorized the seizure of Andy Warhol’s “Little Electric Chair” and an untitled self-portrait by Martin Kippenberger. The ruling marks a major step in a decade-long legal battle by private equity firm CVC Capital Partners to collect on a nine-figure arbitration award against Zhang.

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A U.S. court ordered the seizure of two paintings worth $29.1 million bought by restaurateur Zhang Lan, ruling she fraudulently tried to hide assets from creditor CVC Capital Partners.
CVC pursued the assets after a tribunal awarded them $142 million in damages over Zhang’s allegedly fraudulent 2013 sale of her South Beauty chain.
The paintings, purchased soon after the sale, were traced back to Zhang despite being registered under a shell company controlled by her son.

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Who’s Who

CVC Capital Partners: CVC Capital Partners is a private equity firm engaged in a decade-long legal battle with restaurateur Zhang Lan. They acquired an 82.7% stake in Zhang's South Beauty restaurant chain in 2013. After discovering financial decline and alleging fraud, an arbitration tribunal ordered Zhang to pay CVC about $142 million in damages. CVC is now seeking to seize two paintings to recover the debt.

South Beauty: South Beauty was a restaurant chain founded by celebrity restaurateur Zhang Lan. Private equity firm CVC Capital Partners acquired an 82.7% stake in South Beauty in 2013. The company's financial performance declined after the acquisition, leading CVC to accuse Zhang of fraud. An arbitration tribunal ordered Zhang to pay CVC approximately $142 million in damages.

Apex Lead Investment Holdings Ltd.: Apex Lead Investment Holdings Ltd., also known as 领卓投资控股有限公司, is a shell company registered in the Seychelles by Zhang Lan. Its sole shareholder is her son, Wang Xiaofei. Zhang Lan used Apex Lead Investment Holdings Ltd. to conceal her assets, including two paintings valued at $29.1 million, from creditors. A U.S. federal court ruled that the transfer of ownership to Apex was a "fraudulent conveyance."

Christie's: Christie's is an auction house where Zhang Lan purchased two paintings for $29.1 million in May 2014. She attempted to change the buyer's name on the invoice to a shell company, Apex Lead Investment Holdings Ltd., two weeks later. However, Christie's internal records still identified Zhang as the real client, and the funds for the purchase originated from her account.

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What Happened When

December 2013：: CVC Capital Partners acquired an 82.7% stake in Zhang Lan’s South Beauty restaurant chain for about $286 million.

May 2014：: Zhang Lan purchased Andy Warhol’s “Little Electric Chair” and a self-portrait by Martin Kippenberger at a Christie’s auction in New York for $29.1 million.

Late May 2014 (Two weeks after the auction)：: Zhang Lan registered Apex Lead Investment Holdings Ltd. in the Seychelles and requested Christie’s to change the buyer’s name on the invoice to Apex.

2019：: An arbitration tribunal ordered Zhang Lan and her companies to pay CVC about $142 million in damages plus interest.

February 2021：: China’s Supreme People’s Court upheld the arbitration award, making it final.

March 24, 2026：: U.S. District Court for the Southern District of New York authorized the seizure of the two paintings, finding Zhang Lan's transfer of ownership to Apex was a 'fraudulent conveyance.'

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