Art

How Companies sell off valuable art to cut office space and raise revenue

Published

4 years ago

October 18, 2020

Harry Miller

David Heffel, president of the Heffel Fine Art Auction House, at the gallery in Toronto, on Oct. 16, 2020.

Mark Blinch/The Globe and Mail

Dev Ramsumair got a call from a law firm in September on his first day as curator at the Art Gallery of Mississauga.

“The lawyers were moving to smaller offices and wanted to donate 50 paintings,” Mr. Ramsumair said. So the first task for the curator, who has worked at galleries in New York and Philadelphia and at the Royal Ontario Museum in Toronto, was cataloging and valuing the pieces, restoring some and finding space to exhibit them. The collection includes works from Ontario landscape painter George Raab and B.C. artist Pat Service.

Mr. Ramsumair and other art experts say the donation is among the first in a wave of pandemic-induced art divestments from corporate Canada.

As the global health crisis led to an increase in working from home, many companies said they plan to permanently reduce the number of employees in office towers. The transformation is playing out at banks, insurers, law firms and accounting practices that are home to some of the country’s largest art collections. Having far less real estate means fewer walls to hang paintings.

“The way we use office space is changing,” said Rob Cowley, president of Cowley Abbott Fine Art.

Corporations routinely sell significant pieces – Calgary-based TC Energy Corp. is offering an Emily Carr oil painting called Forest Glade at a Cowley Abbott auction in December, and the auctioneer predicts the work will fetch $150,000. However, Mr. Cowley said, while TC Energy has been selling pieces as part of a strategic, multiyear process to manage its collection, many companies are likely to part with long-held paintings simply because they no longer have a place to show them.

“We expect to see stunning corporate collections come to market over the next few years,” said David Heffel, president of Heffel Gallery Ltd.

He said the Vancouver-based auction house is already doing preliminary work with a handful of Canadian companies, cataloging their pieces ahead of planned moves to smaller office space. Mr. Heffel said the pandemic is creating a sense of urgency around decision-making, and “where art may have been put in storage in the past, corporate clients are now looking to monetize earlier, rather than later.”

Corporate collections are also being culled at businesses looking to cut costs and raise money during what many expect will be a prolonged economic downturn. In June, cash-strapped British Airways announced it would sell some of the most valuable works from a 1,500-piece collection, including paintings by U.K. artists such as Damien Hirst, Bridget Riley and Peter Doig, which auction house Sotheby’s says are worth a total of $1.7-million or more. While the art sale, which was prompted by an employee suggestion, will do little to fix the finances of an airline burning through $290-million each week, the move was seen as symbolically important for a company seeking government and public support.

Canadian businesses will be selling their Group of Seven, Emily Carr and Jean-Paul Riopelle works at a time when demand from private collectors is soaring, gallery owners say. Mr. Cowley said with the pandemic forcing everyone to spend more time at home, some wealthy individuals want to upgrade the art they look at each day. “We’ve been very fortunate, during COVID, to see increased engagement with many collectors,” he said.

A number of Canadian businesses have built deep collections over several decades, and sales would shake up the art market, if experience is any guide. The high water mark for a Canadian painting was set in 2016, when a Lawren Harris work called Mountain Forms sold at a Heffel auction for $11.2-million. The painting was owned by Imperial Oil Ltd., and went on the block after the company left office towers in Calgary and Toronto for a campus in the Calgary suburbs. As part of the downsizing, Imperial Oil sold more than 4,000 works.

The quality of corporate collections is all over the map, the AGM’s Mr. Ramsumair said. Some reflect the personal tastes of one buyer – typically the founder – and don’t age well. At the other extreme are professionally curated collections that rival any museum – a decade back, the AGM played host to a show of paintings owned by Royal Bank of Canada.

As a rule, “pieces that are timeless, or push boundaries, will retain their appeal,” Mr. Ramsumair said. “There will be less interest in works from artists that were simply of a time.”

Art is an “invisible” asset on most company’s balance sheets, Mr. Heffel said. Tax laws allow companies to depreciate the value of their art by 20 per cent each year. That means over time, a painting may rise in value on the market, but be marked down to nothing on a corporate balance sheet.

To date, Canadian gallery owners say, financial distress is not driving the corporate art divestments. Mr. Heffel said most companies that sell art donate some or all of the proceeds to charities.

Source:- The Globe and Mail

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Art

Calvin Lucyshyn: Vancouver Island Art Dealer Faces Fraud Charges After Police Seize Millions in Artwork

Published

5 days ago

September 13, 2024

Harry Miller

In a case that has sent shockwaves through the Vancouver Island art community, a local art dealer has been charged with one count of fraud over $5,000. Calvin Lucyshyn, the former operator of the now-closed Winchester Galleries in Oak Bay, faces the charge after police seized hundreds of artworks, valued in the tens of millions of dollars, from various storage sites in the Greater Victoria area.

Alleged Fraud Scheme

Police allege that Lucyshyn had been taking valuable art from members of the public under the guise of appraising or consigning the pieces for sale, only to cut off all communication with the owners. This investigation began in April 2022, when police received a complaint from an individual who had provided four paintings to Lucyshyn, including three works by renowned British Columbia artist Emily Carr, and had not received any updates on their sale.

Further investigation by the Saanich Police Department revealed that this was not an isolated incident. Detectives found other alleged victims who had similar experiences with Winchester Galleries, leading police to execute search warrants at three separate storage locations across Greater Victoria.

Massive Seizure of Artworks

In what has become one of the largest art fraud investigations in recent Canadian history, authorities seized approximately 1,100 pieces of art, including more than 600 pieces from a storage site in Saanich, over 300 in Langford, and more than 100 in Oak Bay. Some of the more valuable pieces, according to police, were estimated to be worth $85,000 each.

Lucyshyn was arrested on April 21, 2022, but was later released from custody. In May 2024, a fraud charge was formally laid against him.

Artwork Returned, but Some Remain Unclaimed

In a statement released on Monday, the Saanich Police Department confirmed that 1,050 of the seized artworks have been returned to their rightful owners. However, several pieces remain unclaimed, and police continue their efforts to track down the owners of these works.

Court Proceedings Ongoing

The criminal charge against Lucyshyn has not yet been tested in court, and he has publicly stated his intention to defend himself against any pending allegations. His next court appearance is scheduled for September 10, 2024.

Impact on the Local Art Community

The news of Lucyshyn’s alleged fraud has deeply affected Vancouver Island’s art community, particularly collectors, galleries, and artists who may have been impacted by the gallery’s operations. With high-value pieces from artists like Emily Carr involved, the case underscores the vulnerabilities that can exist in art transactions.

For many art collectors, the investigation has raised concerns about the potential for fraud in the art world, particularly when it comes to dealing with private galleries and dealers. The seizure of such a vast collection of artworks has also led to questions about the management and oversight of valuable art pieces, as well as the importance of transparency and trust in the industry.

As the case continues to unfold in court, it will likely serve as a cautionary tale for collectors and galleries alike, highlighting the need for due diligence in the sale and appraisal of high-value artworks.

While much of the seized artwork has been returned, the full scale of the alleged fraud is still being unraveled. Lucyshyn’s upcoming court appearances will be closely watched, not only by the legal community but also by the wider art world, as it navigates the fallout from one of Canada’s most significant art fraud cases in recent memory.

Art collectors and individuals who believe they may have been affected by this case are encouraged to contact the Saanich Police Department to inquire about any unclaimed pieces. Additionally, the case serves as a reminder for anyone involved in high-value art transactions to work with reputable dealers and to keep thorough documentation of all transactions.

As with any investment, whether in art or other ventures, it is crucial to be cautious and informed. Art fraud can devastate personal collections and finances, but by taking steps to verify authenticity, provenance, and the reputation of dealers, collectors can help safeguard their valuable pieces.

Art

Ukrainian sells art in Essex while stuck in a warzone – BBC.com

Published

2 weeks ago

September 2, 2024

Harry Miller

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Ukrainian sells art in Essex while stuck in a warzone BBC.com

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Art

Somerset House Fire: Courtauld Gallery Reopens, Rest of Landmark Closed

Published

1 month ago

August 18, 2024

Harry Miller

The Courtauld Gallery at Somerset House has reopened its doors to the public after a fire swept through the historic building in central London. While the gallery has resumed operations, the rest of the iconic site remains closed “until further notice.”

On Saturday, approximately 125 firefighters were called to the scene to battle the blaze, which sent smoke billowing across the city. Fortunately, the fire occurred in a part of the building not housing valuable artworks, and no injuries were reported. Authorities are still investigating the cause of the fire.

Despite the disruption, art lovers queued outside the gallery before it reopened at 10:00 BST on Sunday. One visitor expressed his relief, saying, “I was sad to see the fire, but I’m relieved the art is safe.”

The Clark family, visiting London from Washington state, USA, had a unique perspective on the incident. While sightseeing on the London Eye, they watched as firefighters tackled the flames. Paul Clark, accompanied by his wife Jiorgia and their four children, shared their concern for the safety of the artwork inside Somerset House. “It was sad to see,” Mr. Clark told the BBC. As a fan of Vincent Van Gogh, he was particularly relieved to learn that the painter’s famous Self-Portrait with Bandaged Ear had not been affected by the fire.

Blaze in the West Wing

The fire broke out around midday on Saturday in the west wing of Somerset House, a section of the building primarily used for offices and storage. Jonathan Reekie, director of Somerset House Trust, assured the public that “no valuable artefacts or artworks” were located in that part of the building. By Sunday, fire engines were still stationed outside as investigations into the fire’s origin continued.

About Somerset House

Located on the Strand in central London, Somerset House is a prominent arts venue with a rich history dating back to the Georgian era. Built on the site of a former Tudor palace, the complex is known for its iconic courtyard and is home to the Courtauld Gallery. The gallery houses a prestigious collection from the Samuel Courtauld Trust, showcasing masterpieces from the Middle Ages to the 20th century. Among the notable works are pieces by impressionist legends such as Edouard Manet, Claude Monet, Paul Cézanne, and Vincent Van Gogh.

Somerset House regularly hosts cultural exhibitions and public events, including its popular winter ice skating sessions in the courtyard. However, for now, the venue remains partially closed as authorities ensure the safety of the site following the fire.

Art lovers and the Somerset House community can take solace in knowing that the invaluable collection remains unharmed, and the Courtauld Gallery continues to welcome visitors, offering a reprieve amid the disruption.

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