On its website, the team said running a permanent gallery was “no longer financially viable in the current funding climate”.
In an open letter, Ms Laffler said the decision had been made following a consultation and “expert guidance” from across the arts and heritage sector.
She said the collective would instead showcase its collection via its digital archive and by working with others such as “high profile exhibition partners” and heritage centres.
Ms Laffler said the team would be sharing more details on new partnerships soon.
The gallery was forced to close after it said it had been told in November 2022 that it would no longer receive Arts Council National Portfolio Organisation funding.
It had been given £120,000 a year from the fund for the previous four years.
New tenants have now reopened the building as a health and wellness centre, called Reform Studios, offering activities such as Pilates, meditation and sound healing.