Pace Gallery downsizing sparks debate on mega-gallery model's future

Pace Gallery CEO Marc Glimcher announced on June 3 that the gallery was dropping 50 of its roughly 130 artists and laying off 20 percent of staff, calling the current gallery model 'unfixable.' The statement, released just before Art Basel, was seen by many dealers as ill-timed. Despite the downsizing, Pace had a strong presence at Art Basel with two booths, including a new venture with David Schrader and Emmanuel Di Donna. Founder Arne Glimcher called the mega-gallery model 'ridiculous and unsupportable.' However, the article argues that mega galleries like Gagosian, Hauser & Wirth, and David Zwirner are thriving, with strong brand equity comparable to luxury brands. Hauser & Wirth has expanded into lifestyle with restaurants and estates in Somerset and Menorca. The author contends that the mega-gallery model is not broken, citing potential valuations of $1-4 billion. In contrast, small and mid-size galleries face financial strain, as seen at Art Basel's second floor. The piece concludes that reports of the mega gallery's death are exaggerated, echoing Mark Twain.