ArtReview examines midlist gallery closures and business ethics in contemporary art market

Jonathan T.D. Neil questions whether the closure of midlist galleries should be lamented, arguing that failures often stem from business mismanagement rather than ethical shifts in the art market. He cites Jean-Claude Freymond-Guth's open letter upon closing Freymond-Guth Fine Arts in Basel, Switzerland at summer's end 2017, where the gallerist blamed global commercial pressures for his failure. Neil distinguishes between structural changes driven by technology or demographics and ethical changes involving how market participants believe they should behave. He identifies two ethical frameworks: buy-side ethics concerning collector behavior and sell-side ethics involving gallery operations like paying artists and maintaining cash flow. The article references Lisa Cooley's gallery closure on New York City's Lower East Side, where she cited buyer disinterest and lack of connoisseurship as reasons. Neil contends that most gallery failures result from sell-side imbalances, such as overspending on gallery expansions, rather than collector ethics. He emphasizes that commercial reality requires balancing business needs with idealistic values like reflection and community, which can actually support commercial success. The piece concludes that running out of cash represents the primary business failure, not market conditions.