Del. Museum to Sell Major Works to Plug Debt Hole

The Delaware Art Museum will auction works valued at $30-million to stave off a fiscal crisis its leaders said threatens to shutter the 102-year-old institution, The News Journal of Wilmington writes.

Mike Miller, the museum’s chief executive, said Wednesday’s board vote to sell up to four pieces was a “last resort” necessary to avert closure. The museum is carrying $19.8-million in debt on a major 2005 expansion and faces an October deadline to repay the bonds after Wells Fargo revoked its credit guarantee, circumstances Mr. Miller said hampered efforts to restructure or merge with other institutions.

Revenue from the sale will also go toward replenishing the museum’s endowment, which plunged in the wake of the 2008 financial crash. The museum did not identify the works to go on the block but said they would not come from the 90 percent of its collection supplied by gifts and bequests.

Mr. Miller acknowledge the move could damage the museum’s reputation. The Association of Art Museum Directors frowns on selling art for purposes other than funding future acquisitions and advised the Delaware museum to publicize its fiscal troubles to mobilize support from donors and state leaders. Mr. Miller said the museum “talked to every white knight we could think of,” without success.