The Wall Street Journal reveals that a small New York museum faces the loss of its charter when it was discovered that the permanent collection had been pledged as collateral against a loan for the museum’s mortgage. The Chelsea Art Museum was founded by Dorthea Keeser:
On Friday, a company controlled by Ms. Keeser that owns the museum’s home filed for Chapter 11 bankruptcy protection in Manhattan—a step that would forestall any foreclosure proceedings.
The eight-year-old museum, which focuses on contemporary art, has faced ongoing financial difficulties, with Ms. Keeser struggling to pay the mortgage on its 30,000-square-foot home on West 22nd Street.
But the decision to collateralize its permanent collection—which has paintings and prints by abstract artists including Jean Arp, Sam Francis, Joan Mitchell and Robert Motherwell, and is worth $2.5 million, according to Ms. Keeser—has perhaps more serious repercussions for the museum.
Chelsea Museum Risks Losing Charter (Wall Street Journal)
