The Hole Gallery Faces Financial Strain with Unpaid Rent, Artist Payments, and Los Angeles Closure

The Hole, a gallery in New York established by Kathy Grayson in 2010, is currently struggling financially, resulting in overdue rent, late payments to artists, and the impending shutdown of its West Hollywood location by September 2025. Legal documents indicate that the Tribeca site has accrued over $120,000 in unpaid rent, while the Bowery venue owes more than $60,000. Artists have experienced significant delays in receiving payments, with some waiting close to ten months, and one artist discovered their work sold at a 35% markdown. Grayson attributed these challenges to a market contraction following an expansion period from 2021 to 2023, which has seen art fair participation drop from 12 in 2023 to just one in 2026. The Los Angeles gallery, which opened in 2022, is now available for sublease. Other galleries have also shut down locations due to rising expenses.