The art of a recession: Gallery owners struggling

SCOTTSDALE, Ariz. — Art gallery owners across the country are finding they have a tough sell these days.

With houses going up for auction, unemployment continuing to rise and the threat of layoffs seemingly ever-present, many gallery owners in art communities such as Scottsdale, Ariz., Santa Fe, N.M., Portland, Ore., and New York City are closing shop, going broke to stay open or drastically changing the way they do business.

"Art is a very discretionary sort of object, and we are in the worst recession arguably in the postwar era," said Jay Bryson, a global economist with Wells Fargo Securities in Charlotte, N.C. "Obviously somebody who has lost their job in a factory in Indiana probably is not buying art."

Even people with plenty of discretionary money aren't spending much on it.

"You're a billionaire and you took a 40 percent hit on your portfolio, now you only have $600 million left," Bryson said. "That's still pretty deep pockets, but 40 percent is 40 percent."

In the gallery district of downtown Scottsdale, at least a half dozen galleries have closed in the past year or are in the midst of closing. Others still are wondering how much longer they can make it.

One recent day, Leslie Levy sat quietly amid the contemporary art she sells in her gallery, which was just as deserted as the streets outside, where the temperature was in the triple digits.

The summers here are always slow because of the heat, but this one is much worse than usual. That's partly why Levy is closing her doors at the end of August after 32 years in business and becoming a private art dealer online.

"I'll tell you what — if I was younger, I'd just keep at it knowing we've not seen times quite as bad as this before," Levy said.

Longtime customer Marylyn Gregory of Bernardsville, N.J., came in the gallery that day to see it one last time and check out what pieces Levy had left of her and her husband's favorite artist. Gregory told Levy she was surprised and upset when she heard the gallery was closing but added, "You're probably doing the right thing."

Gregory didn't end up buying anything that day, saying she needed to check with her husband. Before, she might have been more spontaneous.

"Sometimes you'd go to an opening and have a glass of wine, and you're like, OK," she said. "It's certainly the method to get everyone to open their checkbooks."

But like many other art lovers, the Gregorys are more conservative with their money these days.