Pace Gallery's British business has recorded another steep annual loss, underlining how far the mega-dealer's European and Asian operations have shrunk since the market downturn. Documents published on October 26 by Companies House, the UK's corporate registry, show Pace Gallery Limited made a pre-tax loss of about $5.5 million in 2025, against a near break-even result the year before. Turnover fell 2.6 percent to $65.9 million, and stands 37 percent below the $104.9 million reported in 2023.

The UK company covers Pace's operations in Europe and Asia, but not its American headquarters or its Tokyo branch. Its balance sheet has tipped into negative territory, with net liabilities of $2.9 million compared with net assets of $2.5 million a year earlier. Money owed to its US parent rose to $21.3 million, up from $19.2 million, and a further $9.9 million was payable to the parent company.

The filing attributes the result to a continuing contraction across the global and British art markets and to buyers holding back. It echoes the explanation given for the 2024 accounts, which were published only days earlier, ten months late, showing a $1.9 million loss. To repair the balance sheet, the parent company intends to turn part of what it is owed into shares in the UK business before the end of 2026, a step the gallery describes as a capital-structure decision rather than a sign of a cash crisis.

The numbers arrive after a year of retrenchment at Pace. In June the gallery cut around 50 artists from its roster and reduced global staff by roughly a fifth, saying it wanted to concentrate resources, support its artists and collectors better, and return to a leaner and more profitable model. It has also shrunk its property footprint, putting its Hanover Square base in London on the market in June with a move to smaller premises nearby planned for 2027, while some floors of its New York headquarters are on offer for sublease. Chief executive Marc Glimcher has said publicly that the business needed fundamental structural change to adapt to current conditions.