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Lighthouse Immersive, company behind immersive Van Gogh exhibit, restructures amid creditor protection filing

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Lighthouse Immersive, which stages immersive art productions, has filed for creditor protection.Lighthouse Immersive

The Toronto company behind massive immersive exhibits of works by Vincent Van Gogh, Frida Kahlo and even Disney overspent on international growth after intense pandemic interest subsided, Delaware and Ontario court filings reveal, which left owners in a US$16.6-million dispute with a California partner and forcing it to file for creditor protection.

Justice Jessica Kimmel of the Ontario Superior Court accepted Lighthouse Immersive Inc. and its affiliate companies’ request last week for protection so that it could restructure its affiliate business and significantly shrink operations.

The company now expects to only operate shows in four or five cities by the end of September, down from its height of nearly 20. Lighthouse publicist Nick Harkin said in an e-mail that the restructuring “in no way impacts the operations in Canada and our presentation of ‘Immersive Disney Animation’ is proceeding as scheduled.”

Lighthouse was founded in 2019 by Corey Ross, Svetlana Dvoretsky and Slava Zheleznyakov, who hoped to bring art “to life” by projecting the works of acclaimed artists onto the walls, floors and columns of bespoke gallery spaces so that fans could appreciate their finer details. The company became an early-pandemic success story after reconfiguring its downtown Toronto Immersive Van Gogh exhibit as a drive-in experience amid COVID-19 lockdowns.

“Lighthouse sold out shows seven days a week and months in advance for almost an entire year,” the company wrote in a filing with a Delaware bankruptcy court. It claims to have sold more than seven million tickets to its events since inception.

The filings illustrate that Lighthouse’s expansion did not go smoothly. Despite operating “at a significant profit” in 2021, it swiftly expanded operations to about 20 venues globally in the absence of “having a solid, long-term chief financial officer or a substantial financial department to keep up with the rapid expansion of the business,” the company wrote.

As time passed and as COVID-19 restrictions began to loosen, Lighthouse said its audience began to drop off, blaming new immersive-art competitors and the reopening of other artistic venues including galleries, museums and theatres as eating into its success. “The form of art lost its novelty and patrons had other options,” the filing states.

By then, its U.S. affiliate had joined forces with a company called Impact Museums Inc. for a joint venture to help expand into cities such as Dallas, Atlanta and Los Angeles, where Impact is based.

As Lighthouse and its affiliates introduced shows – showcasing the art of Claude Monet, Gustav Klimt and more – its sales dropped to a 10th of the initial Van Gogh shows, prompting them to “introduce more shows at a rapid pace in 2022 resulting in escalating development costs and marketing costs.”

By the time a Lighthouse affiliate signed a landmark deal with Disney last fall to build immersive shows around its animated properties, “various issues arose” with the Toronto company’s partnership with Impact. The companies entered a settlement agreement that required payments to Impact, the filings say, which were first reported by Bloomberg.

At some point thereafter, Lighthouse’s U.S. affiliate missed a payment, at which point Impact locked Lighthouse out of several locations, forcing it to “refund approximately $1.5 million in tickets sales and cancel all ongoing ticket sales” in those locations.

Impact also sought US$16.6-million from Lighthouse and its affiliates in the connection with the settlement, which a Delaware judge was scheduled to hear on July 28. The creditor-protection claims were filed on July 27 and approved the next day.

They showed that as of May 31, Lighthouse’s U.S. affiliate had US$53.1-million in assets and US$100.2-million in liabilities. In the first five months of 2023, the affiliate reported a loss of US$20.6-million. The Companies’ Creditors Arrangement Act application was affirmed by a judge on July 28. Lighthouse hopes to “stabilize” and “right-size” its business, sell merchandise and equipment, and preserve its company value and employees’ jobs.

The Ontario court appointed B. Riley Farber Inc. as a monitor for the company’s operations and approved the company to access a line of credit of up to $1.1-million from a separate firm owned by Lighthouse’s three co-owners.

With research from Stephanie Chambers

 

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

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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.

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

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

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

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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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