Art Gallery Chain May File Bankruptcy

Martin Lawrence Limited Editions Inc., the long-struggling Van Nuys-based art gallery concern, said that it might file for bankruptcy protection before the end of the year.

During its third quarter that ended Sept. 30, Martin Lawrence saw its net loss widen to $1.4 million, compared to $538,000 in the same period a year earlier. Sales in the third quarter fell to $5.1 million, down 17% from $6.2 million.

Since March, in an effort to cut costs, the company has laid off 26% of its staff at its corporate headquarters.

In the nine-month period, Martin Lawrence posted a net loss of $4.2 million, compared to a $2.5 million loss a year ago. Sales for the nine months inched up slightly to $14.8 million from $14.7 million last year.