The Honolulu Academy of Arts and the Contemporary Museum moved ahead this week with a plan to merge into a single entity.

According to letters sent out to their respective members this week, the two arts organizations had reached a non-binding agreement and signed a letter of intent, formally entering a phase of “due diligence”, designed to catch and address any potential problems before proceeding with a merger.

Nothing was said about the shape of preliminary plans for merging their collections and activities, or whether the new combined museum will retain both buildings.

The Contemporary Museum experienced major investment losses during the global recession, which appear to have kick-started these merger discussions.

Both of these museums have made major contributions to the Hawaii art scene and it remains to be seen whether their merger will add up to an overall loss or a gain for the public.

Click here for a copy of the letter from Lynne Johnson, interim director of the Honolulu Academy of Arts.