Hot Docs announced that it is conducting a due diligence process on a conditional offer for the sale of Hot Docs Ted Rogers Cinema.

According to an April 23 release from the organization, terms of the sale include a lease-back arrangement that will allow Hot Docs to continue operating and programming the cinema year-round.

Hot Docs’ due diligence process on the sale is anticipated to conclude in the summer. The organization also noted that it will not be offering further comment on the sale until that process is completed with Hot Docs currently focusing on this year’s festival which runs from today (April 24) to May 4.

The not-for-profit organization initially announced that it was seeking a new owner for the cinema in October 2024, following a series of operational and financial challenges.

“We’re confident that finding the right buyer will allow us to refocus on our mission to support documentary filmmakers and continue to celebrate their work at the Cinema and Festival, while also addressing our deficit and ensuring our long-term viability,” said Nicholas de Pencier, co-chair of Hot Docs’ board of directors in the October release revealing the organization’s path forward.

In March 2024, a month before that year’s festival, 10 Hot Docs programmers and its artistic director stepped down from their roles, with the programmers alleging “a lack of respect for protocol and business communication”; “the dismissal and/or diminishment of team members’ voices”; and “breaches of contracts across various programs,” according to a joint statement.

Earlier in that same month, then Hot Docs president Marie Nelson issued an urgent appeal for the organization as it was facing “a significant operational deficit that threatens our long-term sustainability,” Nelson shared in a message to members of the Hot Docs community.

In May 2024, The Hot Docs Ted Rogers Cinema shut down for three months, citing financial concerns and allowing the team time to regroup. Nelson departed later that year in July following 12 months in the role and the cinema itself had a limited reopening in September.

In the release from last October, the organization said its team “has worked tirelessly to address the organization’s financial challenges and governance issues, and significant progress has been made to stabilize the organization and establish a solid foundation for a sustainable path forward.”

Image courtesy of Hot Docs