Artscape, the Toronto non-profit founded in 1986 to address a growing affordability crisis pricing artists out of the city, has had its receivership delayed by at least 30 days, Mayor Olivia Chow said Saturday.
Last week, the non-profit told artists who live and work in its more than a dozen buildings that it was being placed in receivership.
In an email, Artscape told artists that attempts to resolve increasing financial challenges were unsuccessful.
But on Saturday, Chow said the receivership had been delayed with support from TD Canada Trust and the city.
"We've also convened a working group that includes city staff and philanthropic, business and community leaders to develop a sustainable solution," Chow said in a post on the social media platform X, formerly known as Twitter.
"Artscape is a vital source of affordable living and working space for Toronto's arts and culture community. Our city needs more, not less, affordable spaces for artists," Chow said.
In a statement published on Tuesday, Artscape said it had launched a financial restructuring plan several months ago, after a challenging pandemic period for the organization. It attempted to sell its Launchpad property on Queen's Quay East to repay debt but couldn't find a buyer, its statement said.
The organization sought an extension to its existing line of credit from TD, its primary lender, supported by a loan guarantee by the city in July, the statement said.
But the terms between the city and the bank couldn't be met, leaving the organization insolvent.