Singapore art investment firm's abrupt closure leaves wages unpaid, artworks unreturned; police report lodged

SINGAPORE: Art investment firm Art Works has gone into liquidation leaving its staff with unpaid salaries as well as artwork worth tens of thousands of dollars yet to be returned to artists.

In response to CNA's queries, the police confirmed on Monday (Nov 3) that a report has been lodged, though they did not state what the report was about.

Publicly available documents, as well as employees, said that the firm, which also operates an art gallery at the One Holland Village shopping mall, had been placed into the hands of liquidators on Oct 30.

When full-time artist Sylvie Kettle found out about the liquidation on Friday, she was left frustrated and anxious.

The firm, incorporated in 2011 as Art Index International, holds 14 of Ms Kettle’s artworks, which she values at close to S$100,000 (US$76,800).

It was later renamed Art Works in 2017.

The 26-year-old, who is based in the United States and has worked with the firm since the opening of its gallery at One Holland Village in 2023, told CNA that at least six of her works had been sold, but she had not received a clear update on payment in the past six months.

“There was a period where my emails were either not answered or responded to with vague promises of payment,” she said.

She added that the only direct acknowledgement she received came from the gallery owner, who hinted at the liquidation but provided no further detail.

“You place so much trust in your gallery partners, not only to showcase your work but also to honour the relationship with care and communication,” she said.

“This is a very big hit for me financially.”

SUDDEN CLOSURE

Checks by CNA showed that Art Works’ liquidation happened abruptly and without prior warning.

Its gallery at One Holland Village was closed on Friday, with signs posted stating it was “closed for private event”.

Inside, artworks were still on display, and a staff member from a liquidation firm could be seen taking notes on each piece.

A sign for the gallery’s ongoing exhibition, “Chaos and Sanctuary”, was still visible, showing that the show was scheduled to run until Nov 9.

Several artists featured in the exhibition had been highlighted in Art Works’ social media posts in the days leading up to the liquidation. Both the company’s Facebook page and website were taken down on Friday.

Staff members inside the gallery confirmed they were liquidators appointed to the case but declined to comment further.

When CNA visited Art Works’ main office at Church Street, a staff member requested that affected artists not be contacted for interviews, claiming that the artists "are very stressed at the moment”.

Public records on the Accounting and Corporate Regulatory Authority (ACRA) portal confirmed that the firm is now in liquidation. On Oct 30, it declared its inability to continue operations and appointed liquidators the same day.

Several abrupt business closures have been in the news recently. 

On Oct 29, bakery chain Twelve Cupcakes suddenly wound down with no warning, with about 80 workers left in the lurch. 

Homegrown soy milk brand Jollibean also suddenly closed some of its outlets earlier this year, leading to employees arriving at work to find the shops closed with no prior warning. 

EMPLOYEES "DEEPLY DISAPPOINTED"

In a statement to CNA, a group of 15 employees said they were informed at a meeting on Oct 30 that the company would cease operations immediately. Audit firm Forvis Mazars was appointed as provisional liquidators to wind up the business.

“This announcement came without warning or consultation with employees,” said the statement.

“No advance notice was provided regarding the company’s financial difficulties, the decision to cease trading, or the termination of employment. We were informed that we will not receive outstanding wages or entitlements.”

“As employees who have dedicated ourselves to Art Works and its clients, many of us for several years, we are deeply disappointed by the manner in which this situation is handled.”

“While we understand that businesses face financial challenges, the complete absence of notice, consultation, or information has left all employees without income, without time to prepare, and with significant concerns about unpaid entitlements.”

The employees, who did not identify themselves, said they are seeking guidance on their employment and wage entitlements through the liquidation process and the relevant authorities. 

Despite their “personal circumstances”, they said they remain committed to assisting the liquidation process “where appropriate” and ensuring that clients and artists are “reunited with their works as smoothly as possible”.

“Several employees are reaching out personally to clients with whom they have worked closely.”

They added that, to their knowledge, clients’ and artists’ artworks are being stored at a third-party facility and remain their legal property. The liquidators are expected to contact clients to arrange collection or continued storage.

Clients, artists and creditors were “strongly encouraged” to retain all documentation, respond promptly to liquidator correspondence, and seek independent legal advice.

ARTISTS SEEK ANSWERS

Like Ms Kettle, Singapore-based artist Zhang Fuming was also caught off guard. He found out about the liquidation on Friday through CNA’s queries.

He has two pieces held by Art Works that are valued at around S$10,000.

Mr Zhang said there were earlier hints of trouble when, two weeks ago, the gallery asked him to collect his work — which had been displayed since July — saying it needed to “make space”.

“But they didn’t hint at liquidation,” said the 36-year-old.

He has since tried contacting staff about the liquidation, and they gave him an update on Monday that he can collect his pieces.

The group of Art Works employees expressed regret for the fallout.

“We are deeply sorry for the disruption and anxiety the liquidation has caused,” said the group.

“Decisions about the company’s finances and governance were the responsibility of the directors, and we expect their full cooperation with the provisional liquidators in the interests of clients, artists, employees and other creditors.”

Despite the possible financial blow, the artists who spoke to CNA said they still appreciated the opportunities they had working with Art Works.

Ms Kettle said she is “genuinely grateful” for the years she spent collaborating with the gallery.

“While this ending has been unexpected, I’m choosing to focus on what it has taught me and the new opportunities ahead,” she said.

Echoing her sentiments, Mr Zhang said he understands that financial difficulties can arise in the industry.

“I like to imagine everyone has their struggles, and there will be some due process for everything to be resolved at the end of the day,” he said.

In a statement issued by the directors of Art Works late on Tuesday, they blamed the sudden closure on a "confluence of challenging factors". 

"We invested ahead of the curve, expanding operations and hiring key personnel in anticipation of funding agreements we believed were firmly in place. These strategic investments were made with confidence that committed capital would arrive according to our agreed roadmap," Art Works said.

But this year was "exceptionally challenging", it added.

"Rising operating costs, combined with a well-documented downturn in Singapore's retail environment that has seen numerous closures across sectors, significantly impacted our operations. Investor caution due to geopolitical uncertainty further complicated the landscape," Art Works said.

"Most critically, our funding efforts stalled despite multiple agreements and term sheets in hand."

In its statement, Art Works expressed gratitude to its artists and clients. It also said that working with their employees has been "an honour and privilege".

"We will do everything possible to support you in your next career chapters," said Art Works.

The firm did not address the police report in its statement. CNA has asked Art Works for comment.

CNA also contacted the liquidator, Forvis Mazars, which said it was "unable to comment on specific client matters".