The Hole Sued Over Back Rent, Accused Of Not Paying Artists, Workers

The Hole, the New York gallery founded by Kathy Grayson, is confronting a widening financial squeeze that now includes court filings alleging significant rent arrears at two of its spaces, along with reports that its Los Angeles outpost has shut down. The gallery, long associated with emerging and mid-career contemporary artists, is also facing claims from artists and staffers that payments arrived late throughout 2023 and 2024.

A September 25 filing in New York City civil court by Bremen House, the owner of 312 Bowery, says the gallery paid nearly $23,000 in monthly base rent there. As of August 14, the filing states, The Hole owed nearly $88,000 and had paid nearly $51,000, while accruing about $23,000 more, leaving it roughly $60,000 behind. The filing includes statements and rent demands.

A separate August 15 filing by Walker Broadway LLC, the landlord for the gallery's Tribeca space at 86 Walker Street, says The Hole defaulted on rent there as well. Monthly rent was about $11,500, and the filing says the gallery owed roughly $124,000. A July 18 letter attached to the case warned the gallery to pay or surrender the property. A September 10 filing later indicated nearly $57,000 in default. Both cases also cite unpaid real estate taxes for multiple years.

Grayson told The Art Newspaper that sales fell sharply beginning at the end of 2023 after two unusually strong years.“I'm recalibrating things here to focus on New York and getting everything stabilised again,” she said.“The up can often be as destabilising as the down.” She also said the gallery is current with Bowery rent and is paying down arrears at the Tribeca space.

The Los Angeles chapter appears to have been especially strained. The gallery opened an 8,000-square-foot West Hollywood space in February 2022, when several major international galleries were expanding in the city. According to the report, artists and workers described the move as rushed and said the operation lacked the infrastructure to support it. The gallery's website shows the last exhibition there ended in September 2025.

Kenny Schachter noted in an August 2025 column that The Hole was delinquent in paying artists and pointed to a real estate listing offering the Los Angeles space for sublease. The Art Newspaper also reported that the space was used intermittently for events and brand activations. One freelancer said records showed nearly $8,000 owed, with payment brought current only in January 2025.

The gallery's reduced fair schedule underscores the contraction. After appearing at a dozen fairs in 2023, The Hole has shown at only one so far this year, Felix LA in February, and at three in 2025 overall: The Armory Show, Independent, and Expo Chicago. The situation also recalls an earlier dispute: in 2019, Dallas-based artist Dan Lam sued The Hole and Mamacha over nonpayment and the return of unsold work.

For a gallery built on visibility and momentum, the current picture suggests a more difficult recalibration - one that may shape how mid-sized contemporary galleries balance expansion, overhead, and artist relations in a tighter market.

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