Muche was one of the youngest masters at the Bauhaus. The Haus am Horn, which was built to his designs, he had planned as his "dream home" actually for himself and his young wife El.
In 1913 he completed his secondary school in Fulda to study painting at the Painting and Graphics School in Munich by Paul Weinhold and Felix Eisengräber, formerly Anton Azbé. After being rejected by the Royal Bavarian Academy of Fine Arts in 1914, he moved to Berlin in 1915 and continued his studies of painting in the studio of Martin Brandenburg. In 1915 Herwarth Walden contacted the Sturm artist group and participated in the Sturm exhibition "Neue Kunst". From 1916 to March 1920 Muche taught painting at the Sturm Art School and exhibited between 1916 and 1918 in three exhibitions of the Sturm Gallery together with Paul Klee and Alexander Archipenko. After one year of military service, in 1918 he also participated in an exhibition at the Galerie Dada in Zurich.
In 1920, Walter Gropius appointed him as the youngest master to the State Bauhaus in Weimar. There he dealt initially with organizational issues and the pedagogical structure, then he led until 1925 as a form master weaving. From 1921 to 1922 he was also head of the preliminary course. In 1922 he married the Bauhaus student Elsa (El) Franke. In the spring of 1923, he led the preliminary course in alternation with Johannes Itten and made his first experiences with the widespread religious and philosophical world view Mazdaznan (master of the divine thought). In the same year he took over the management and organization of the first major Bauhaus exhibition in 1923 and delivered designs for the experimental house "Haus Am Horn". In 1924, he went on a study trip to the United States. Also in Dessau Muche worked from 1925 to 1927 as head of weaving. 1926 was built in the settlement Dessau-Törten according to his and the plans of the architecture student Richard Paulick the steel house. After internal disputes Muche left the Bauhaus in 1927 and then taught until 1930 at the Ittenschule Ittenschule founded in 1926 by the Modern Art School Berlin.
In 1929 he headed the departments abstract and constructive design and architecture in the exhibition "10 years November Group". In 1931 he received a professorship at the State Academy of Arts and Crafts in Wroclaw, which was headed by Oskar Moll. In 1933, Muche was dismissed by the Nazis without notice, returned to Berlin and was able to continue teaching until 1938 at the School of Arts and Crafts in Berlin, which was headed by the architect Hugo Häring. In 1937, his publicly owned works were confiscated and two of them were shown in the defamatory exhibition "Degenerate Art" in Munich. In 1939 Muche became artistic director of the master class for textile art he founded at the Textile Engineering School in Krefeld. He also worked at the Institute of Malodourics in Wuppertal together with Oskar Schlemmer and Willi Baumeister. After the war, he continued the master class at the textile engineering school in Krefeld until 1958. He also received numerous commissions for fresco painting (cycle in the House of the silk industry, 1948-1949, fresco in the building of the Dusseldorf Landtag, 1948). After his retirement, he moved to Lake Constance.
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