Legal Battle Over Sperone Westwater’s Closure Highlights Allegations of Mismanagement
As 2026 begins, the New York art scene sees the closure of a long-standing gallery, Sperone Westwater. The 50-year-old institution shut its doors permanently just before the year began, amid a legal conflict between its founding partners. This closure has not ended the legal wrangling over the gallery’s dissolution, as fresh court documents reveal ongoing tensions.
Founded in 1975 by Gian Enzo Sperone, Angela Westwater, and Konrad Fischer—who left in 1982—the gallery’s legal troubles started in August 2025. Sperone, 86, alongside Sandstown Trade Ltd., a family-affiliated entity that holds half of the company, initiated a lawsuit demanding the liquidation of the gallery and its Norman Foster-designed Manhattan building. Documents paint a picture of deep divisions between the two directors, who reportedly don’t communicate directly. The petition accuses Westwater of using the building’s value to support the gallery’s financial struggles, while also revealing that the gallery has failed to pay the agreed $1.8 million annual rent.
Sperone and Sandstown are seeking a court-appointed receiver to manage unresolved issues. In contrast, Westwater, who owns the other half of the corporation, has filed a counter-petition to dismiss the request, accusing Sperone and Sandstown of exploiting the corporation for personal gain. On December 22, Westwater submitted a memorandum with confidential details, including a nine-page term sheet that outlines the dissolution process.
The term sheet specifies that partners will split the proceeds from the building’s sale and share 80 percent of the cash reserves shortly after a settlement agreement is reached. It also requires part of the art sales to fund any outstanding obligations. According to Westwater, significant steps have already been taken, including employee terminations and returning artworks. She states that CBRE has been hired to sell the Foster Building.
Westwater asserts that she has single-handedly managed daily operations for years, claiming Sperone has been largely absent since relocating to Europe in 2016, visiting the gallery only sparingly and communicating via his partner’s email. Her court filings suggest a complete lack of direct communication, leading her to question Sperone’s involvement.
In response, Sperone and Sandstown provided affidavits and exhibits challenging Westwater’s claims, including financial records showing declining profitability and cash reserves. They state the building cost over $34 million to construct, with Sperone investing more than $15 million, including proceeds from selling a Roy Lichtenstein piece. Sperone argues that his investment has yielded minimal returns and that the gallery has been financially unsustainable.
The central dispute now focuses on the best method for winding down and dissolving the corporation. John Cahill, representing Sperone and Sandstown, emphasizes that while the gallery is closed and the building is up for sale, legal challenges remain regarding the corporation’s dissolution process.
