Hauser & Wirth's UK subsidiary has reported a dramatic 87% decline in pretax profits for 2024, reflecting the broader challenges facing the global art market. According to recently filed accounts reviewed by the Financial Times, the gallery's UK operations saw profits before tax plummet to $1.6 million in 2024, down sharply from $12.5 million the previous year.
The financial downturn was accompanied by a significant revenue drop, with the UK subsidiary's revenue falling by more than half to $91.4 million in 2024, compared to $193 million in 2023. This substantial decrease highlights the challenging market conditions that have affected many major players in the art world.
The gallery attributed the decline primarily to a sharp fall in secondary-market sales, which involves reselling works by artists the gallery may not directly represent. According to the filing, this segment of the business can experience significant year-to-year fluctuations depending on a handful of high-value transactions, making it particularly vulnerable to market volatility.
Hauser & Wirth, which represents prominent artists including Frank Bowling, George Condo, and Cindy Sherman, operates an extensive global network of 18 locations worldwide. The gallery maintains spaces in major art markets including New York, Los Angeles, Menorca, and Hong Kong, as well as two locations in the UK on Savile Row in London and at its Somerset campus.
Despite the UK subsidiary's poor performance, Hauser & Wirth emphasized that the UK entity represents only a small portion of its overall global business. The gallery stated that its worldwide results for 2024 were aligned with the previous year's successful performance, suggesting that other international operations may have performed better.
The gallery's founders, Iwan and Manuela Wirth, also operate the Artfarm Group, a hospitality business that runs several high-profile venues including the Fife Arms hotel in Scotland, the Groucho Club in London, and multiple restaurants. Artfarm's accounts showed an even wider pretax loss of $24 million in 2024, compared to $15.8 million a year earlier, despite a 16% increase in turnover.
The hospitality group explained that it was in a period of growth and capital investment, actively expanding its restaurant and bar portfolio internationally. However, the Groucho Club faced additional challenges when its license was temporarily suspended in 2024 following a police investigation into a serious incident at the venue, though authorities did not implicate staff or members in any wrongdoing.
Hauser & Wirth's financial struggles come amid a broader contraction across the entire art market. The 2025 Art Basel and UBS Art Market Report revealed that global art sales fell 12% to $57.5 billion last year, indicating widespread challenges in the industry. Perhaps more concerning, the number of auction lots fetching more than $10 million plunged by 39%, suggesting a significant cooling in the high-end market segment.
The market downturn has prompted major dealers and auction houses to scale back their operations significantly. Pace Gallery recently closed its Hong Kong space last week, though it plans to maintain an office presence in the city. Similarly, Almine Rech has shuttered its London gallery after more than a decade of operations, marking another significant withdrawal from a major art market.
These developments suggest that the art market is experiencing a period of significant adjustment, with even well-established galleries and auction houses reassessing their global footprints. The combination of reduced sales, fewer high-value transactions, and operational challenges is forcing many art world institutions to make difficult strategic decisions about their future operations and expansion plans.
