It has been a summer of change for Pace Gallery, and its 2024 accounts that were filed 10 months late with Companies House, the British government’s business register, reflect that.
The group’s turnover totaled $67.69 million in 2024, a 35.5 percent drop from 2023, which cashed in $104.95 million. A pre-tax loss of $2,429 was recorded for 2024 compared to a $6.8 million profit for 2023. (The mega-gallery’s UK registered company, The Pace Gallery Limited, serves as the umbrella company for its operations in Europe and Asia, excluding Tokyo as well as the US.)
“This reflected a continuation of the sector-wide contraction in global and UK art markets as well as a continued reluctance by some clients to buy which became most pronounced in 2024 and continued through 2025 and into 2026,” Pace Gallery said in the filing. “The market conditions led the directors to initiate cost saving measures across the group, but despite these measures, difficult market conditions continued.”
Net assets totaled $2.48 million compared to $4.51 million for 2023, while $9.39 million was payable to its US parent company, The Pace Gallery LLC, which in 2023 was $17.31 million. Further numbers show that The Pace Gallery Limited’s debt of $19.2 million will be turned into shares by the end of 2026 as it’s unable to repay $19.2 million to its US parent company.
“The proposed debt-for-equity conversion is part of a broader global financial management strategy, which reflects a capital structure decision within the Pace group and should not be interpreted as a loss or a liquidity issue for the UK business,” a Pace spokesperson said. “As part of the ongoing management of our global operations, we periodically review how our subsidiaries are financed to ensure that their balance sheets appropriately reflect the long-term nature of the capital invested in those businesses.”
The gallery added that the parent company has determined that a portion of its investment in the UK operation is more “appropriately reflected as equity rather than intercompany debt. The proposed transaction is intended to strengthen the UK company’s balance sheet and align its capital structure with the long-term needs of the business.”
Back in June, Pace’s London property was put on the market, with the gallery saying it was seeking a “less corporate” space in the British capital. Last month, Pace announced it was seeking tenants for part of its Chelsea headquarters.
Pace CEO Marc Glimcher recently told reporter Julie Brener Davich in the Substack The Appraisal that by early 2026, the company was convinced that “we needed to make real change in the structure of the business to adapt to the new reality.” He explains that this new reality takes into account factors such as: rising interest rates, global instability, the closing of the 1031 exchange tax loophole, as well as managing logistics costs for shipping and crating.