Pace's International Business Posts $5.6M Loss in New Filing

Pace's London-registered international business lost $5.6 million last year, according to a 2025 report filed with Companies House days after the gallery submitted its long-delayed 2024 accounts in the UK.

The filing covers only The Pace Gallery Limited, the entity that runs the gallery's London space and owns subsidiaries in Hong Kong, Beijing, Seoul, Geneva, and Berlin. Pace's US operations are excluded.

What do the numbers show?

Turnover — the UK term for revenue — came in at $65.9 million. That figure sits well below 2023's $104.9 million, but only a shade under 2024's $67.7 million. Profitability fell far more sharply than sales.

Cost of sales rose 12 percent even as revenue slipped. Gross profit dropped $7.4 million, to $12.8 million. Cash on hand has fallen for two consecutive years: $34.8 million in 2023, $24.1 million in 2024, and $11.1 million at the end of 2025. In plain terms, the international business has burned through roughly two-thirds of its cash in two years.

The figures help explain Pace's June decision to drop some 50 artists from its roster and lay off roughly 50 staff members globally. At the time, the Financial Times reported that the gallery's Hanover Square space in London is on the market and that Pace is seeking a smaller location closer to David Zwirner.

The filings describe the cost-cutting plan directly, stating the gallery reduced its roster, cut "the number of full-time support roles," and scaled back exhibitions in summer 2026. The documents do not specify how many international staffers were affected.

What did the investigation allege?

The filings follow journalist Julie Brener Davich's three-part investigation into the gallery, which detailed "claims of 'reckless' executive spending." CEO Marc Glimcher told Brener Davich the gallery had not spent on "frivolous and wasteful things."

Brener Davich nonetheless reported frequent use of a private jet to court artists and clients, and an office revamp led by luxury consultant Alexander Gilkes. At Gilkes's initiative, the gallery installed $12,000 coffee machines on each floor and stocked fridges with kombucha and $12 bottles of water.

Who is covering the losses?

Both filings state the international business is "dependent on financial support" from The Pace Gallery LLC, the New York-based parent company. The UK company's directors have "received assurances" from the parent, "together with Marc Glimcher and Arne Glimcher," that support will continue and that they "will not seek repayment of monies due to them for at least 12 months" from the date the accounts were approved, unless all third-party liabilities have been met.

The US parent intends to convert the money it is owed by the UK company into equity, through the issue of new shares, by the end of 2026. At the end of last year, the UK company owed its parent $21.3 million.

In a statement to Artnet News, a Pace spokesperson characterized the restructuring conversation as part of "a broader global financial management strategy" that should not be interpreted as "a loss or liquidity issue for the UK business." The conversation, the spokesperson said, is intended to "strengthen the UK company's balance sheet."

Pace has yet to respond to a request for comment from ARTnews.

The equity conversion, due by the end of 2026, will show whether the Glimcher family's balance-sheet repair can stabilize the international arm before its cash reserves thin further.