Overdue payments to artists, landlords and workers at a popular gallery reflect pressures squeezing the dealer sector

The Hole, a prominent gallery with locations in New York and Los Angeles, is facing significant financial distress characterized by shuttered spaces and mounting legal disputes. Following a period of rapid expansion fueled by the 2021–2023 art market boom, the gallery has permanently closed its West Hollywood location and is currently facing multiple lawsuits from Manhattan landlords alleging over $180,000 in unpaid rent and taxes. Founder Kathy Grayson attributes the crisis to a sharp decline in sales starting in late 2023, which has left the gallery struggling to pay artists, staff, and creditors.

New York Gallery The Hole Sued Over Back Rent, Accused of Not Paying Artists and Workers

The Hole, a prominent New York-based contemporary art gallery, is facing multiple lawsuits and allegations of financial instability. Legal filings from landlords at both its Bowery and Tribeca locations indicate significant rent arrears totaling over $180,000, alongside unpaid real estate taxes. Founder Kathy Grayson confirmed the closure of the gallery’s Los Angeles outpost, attributing the crisis to a sharp decline in sales starting in late 2023 and a destabilizing period of rapid expansion.

The Hole Gallery Sued Over Unpaid Back Rent

The Hole, a prominent contemporary art gallery founded by Kathy Grayson, has shuttered its West Hollywood location amid a wave of legal and financial troubles. Court filings reveal that the gallery faces multiple lawsuits for unpaid rent and real estate taxes across its Los Angeles and Manhattan outposts, with debts totaling over $180,000. Beyond real estate disputes, the gallery has been dogged by allegations of financial instability and delinquent payments to artists, including a 2019 lawsuit from artist Dan Lam regarding unpaid sales and damaged works.

Strikes Damage UNESCO Sites in Israel and Iran; Cologne Cathedral to Charge Tourists Entry

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Escalating conflict in the Middle East has resulted in significant damage to UNESCO World Heritage sites in both Israel and Iran. In Tel Aviv, Iranian missile strikes damaged Bauhaus-style buildings in the White City district and the Habima National Theater, while Israeli and US bombings reportedly struck Tehran’s historic Golestan Palace. Meanwhile, the Cologne Cathedral announced it will begin charging tourists an entry fee in July to address a financial crisis, following a trend of European landmarks seeking new revenue streams for monument upkeep.

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Kenny Schachter explores the existential threat posed by the rapid advancement of Artificial Intelligence and its projected impact on the global economy by 2028. Citing the Citrini Report, he highlights a future of mass unemployment among white-collar professionals—the primary demographic for art consumption—who account for over 50% of discretionary spending in the U.S. As tech leaders like Jack Dorsey begin significant workforce reductions attributed to AI, the financial foundation of the art market appears increasingly precarious.

UPDATE: These L.A. Artists Flipped a 99 Cents Only Store Into a Bizarrely Beautiful Mid-City Art Gallery

The Hole gallery and artist Barry McGee have transformed a shuttered 99 Cents Only store in Mid-City Los Angeles into a massive, temporary art installation titled "99CENT." The exhibition preserves the original infrastructure of the discount store—including its blue-and-white tiling, checkout lanes, and aisle signage—to house a dense collection of sculptures, paintings, and mixed-media works. Hundreds of artists, ranging from established figures in the graffiti scene to emerging students, contributed to the project, which features everything from tagged bridal gowns to foam sculptures.

5 Art Openings in Los Angeles for L.A. Art Week

Los Angeles is hosting a series of high-profile gallery openings and experimental activations in the lead-up to Frieze Los Angeles 2026. Highlights include David Salle’s first solo exhibition in the city since 1997 at Sprüth Magers, a massive artist-run flea market organized by The Hole in a shuttered 99-cent store, and Rob Pruitt’s charitable flea market with James Fuentes. The week also features a performance by Ryan Trecartin and a solo show of decorative arts by Ingrid Donat at Carpenters Workshop Gallery.