Martin Lawrence Planning to Close 13 of Its 33 Art Galleries

Martin Lawrence Limited Editions Inc., an ailing Van Nuys-based operator of shopping-mall art galleries, said it plans to close nearly 40% of its galleries in the next year and eliminate approximately 45 jobs, partly through attrition.

The closings will result in a $2.8-million charge against fourth-quarter results, the company said.

Martin Lawrence will shut down 13 of its 33 remaining galleries, with eight scheduled to be closed by New Year’s Eve. Four of the remaining stores will cease operations by Dec. 31, 1992, and one will close by July, Martin Lawrence said.

The closures will bring to 23 the total number of galleries closed since Martin Lawrence began cutting back earlier in the year. The company started out the year with 42 galleries.

Allen A. Baron, chief financial officer, said the cuts are needed to cope with the recession and the continued weak art market, which the company has blamed this year for three quarterly losses in a row totaling $5.6 million on revenue of $18.7 million. That compares to a nine-month profit last year of $3.4 million on revenue of $37.4 million.

“I feel that we’re pared down,” Baron said in an interview. “Our overhead will be substantially reduced going into 1992.”

Baron declined to say which galleries will be closed.

The cutbacks will affect sales consultants at the galleries targeted for closure, Baron said, cutting the company’s 265-member sales force by about 17%. Over the past year the company has also cut its corporate work force to 100 from 135, mainly through attrition.

Baron said the company has renegotiated leases for four of the targeted stores that will remain open in 1992. The rent will be based on a percentage of store sales and not a fixed sum as was previously the case, he said.