When you don’t put your most valuable assets on your balance sheet (but do place the cost of acquiring them as expenses) [0], you can’t reasonably expect to be financially stable.
Implicitly, these museums are saying that they’d rather lay off all their staff, than count their art towards their assets [1]. In my opinion, this has always been the real story with financial hardship in the museum world. They have been suffering financially for decades now. Every time membership declines or attendance stalls, they are doomed to teeter closer to the edge.
[0]: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1262403
[1]: see, for example, this financial audit of the museum of Boston. “In accordance with current practice generally followed by museums, collections are generally not recorded as assets in the accompanying financial statements. Purchased additions to the collections are recorded as expenses at the time acquired.” ... “ Museum policy specifies that proceeds from the deaccessioning of an item may only be used for the conservation or acquisition of other collections items.” https://www.mos.org/sites/dev-elvis.mos.org/files/docs/about...