Culture Chronicle

Chelsea Museum Risks Losing Charter
The Wall Street Journal - August 10, 2010
By Erica Orden and Craig Karmin

A Chelsea museum could face the loss of its charter or referral to the state attorney general's office following disclosure that its entire permanent collection of artwork was pledged as collateral for a loan needed to pay its mortgage.

The possible penalties are the latest twist for the Chelsea Art Museum, whose founder and director, Dorothea Keeser, is trying to avoid foreclosure. 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. For the full article, click here