"Who will be 1st to suggest American Folk Art Museum sell some Henry Dargers to pay the bills?" Los Angeles Times art critic Christopher Knight asked on Twitter earlier today. "My guess: some lawyer." According to the New York Times, the American Folk Art Museum is continuing to battle massive financial difficulties, unable to pay off its debts, and in negotiations with creditors about restructuring the terms of its financing.

The museum announced six months ago that it would cease making payments on a $32 million loan it obtained to build its current home on West 53rd Street, right next to the Museum of Modern Art. The 30,000-square-foot building, designed by Tod Williams Billie Tsien Architects, was expected to attract major attendance numbers when it opened in 2001, though the institution began to see a strain on its finances when that failed to happen and operating the new building cost more than expected.

The museum’s bronze-clad building currently serves as collateral for the outstanding loans. Its incoming president, Stephen Corelli told the Times that "everybody is operating very conscientiously and in good faith to find a solution to these challenges." The museum has cut its budget in recent years, from $10.3 million in 2009 to $7 million for the 2011 fiscal year. "They are making strides in terms of their financial health," New York cultural affairs commissioner Kate D. Levin told the Times.

Despite lackluster attendance, the museum has earned strong critical support for its exhibitions, including a retrospective of the work of Martín Ramírez, which Times art critic Roberta Smith termed "one of the best shows of the season,” in 2007. New York magazine art critic and reality-show judge Jerry Saltz also shared his support, writing back in June: "The American Folk Art Museum is one of my favorite museums in America." But even Saltz had reservations, admitting, "I hate the museum because its horrendous building smothers the art and vision contained within." It also seems to be smothering its financial well-being.