Insolvency Report Reveals Simon Lee Gallery’s £10m Debt

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The administration of Simon Lee Gallery (SLG) has revealed a comprehensive overview of the business’s debts, raising concerns about its past transactions. According to a proposal by BDO LLP, SLG owed approximately £10m to 153 creditors due to increased leverage and changing market conditions. Despite a long history of profitability, SLG experienced a significant decline in turnover in 2019, leading to a net loss of £3.2m. The global Covid-19 pandemic further impacted the gallery’s operations, prompting it to seek financial assistance.

Following the failure to file accounts and tax returns post-2019, HMRC initiated winding-up petitions against SLG multiple times. Despite settlement agreements in the past, a third petition led to Barclays freezing the gallery’s accounts in 2023. The closure of SLG’s New York and Hong Kong branches preceded the appointment of administrators in July 2023. The gallery’s former Mayfair space is now leased by Maddox Gallery.

Notable commercial creditors listed in the report include PKM, Mendes Wood DM, and The Artist Room. Several artists, including France-Lise McGurn, Jim Shaw, Garth Weiser, and Angela Bulloch, are also owed significant amounts by SLG. The report also highlights claims by art businesses, with Barclays and BDO among the top creditors.

The administrators aim to recover outstanding payments to repay creditors; however, a substantial shortfall is anticipated. The administration process is expected to conclude by July 2024, but delays may extend this timeline.

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