Why Is L.A's Top Gallery Closing? Let the Owner Tell You.
He arrived with nearly 85 percent of his sales already done— sold to collectors who had purchased contemporary artworks for hundreds of thousands of dollars each, based on digital images sent to them. Then he capped off the V.I.P. opening with a sunset party at a rooftop bar packed with hundreds of attendees from around the world.
But everywhere he looked, the gallerist saw hollow victories and confirmation that the art market had fundamentally changed since he entered the business more than 30 years ago. It had cost his gallery $450,000 to participate in this year's edition of the influential Swiss fair, taking into account booth fees, shipping, insurance and staff accommodations. There was little deal-making on the salesroom floor, and despite the crowds, Blum said he searched in vain for serious buyers.
'There was one collector, who pointedly said that he was not there to buy anything—'I'm just here to party,'' he recalled the client telling him.
On July 1, Blum formally announced that he was closing the gallery's locations in Los Angeles and Tokyo, and eyeing a potential sale of the Tribeca gallery space he had purchased for $5.3 million about two years ago and was set to open this fall. After subtracting various fees, including the artists' share of profits, Blum made a small gain on his investment. But it wasn't enough to continue in a business where shrinking revenue and rising overhead costs meant that he could end next year in the red.
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