4R Blog

RSS Feed

Highlands arts body enters liquidation

Date Added: 02/07/2013  

The main cultural development agency for the Highlands and Islands has confirmed it is going into liquidation as a result of its financial difficulties.

Hi-Arts, which was based in Inverness, ran out of money and is being wound down. It had staff in Argyll, Knoydart, Skye, Lewis and Aberdeenshire.

According to a report published by the Scotsman, it emerged three months ago that the future of the organisation was in doubt because of its financial issues.

The way funds have been issued to the body by Highlands and Islands Enterprise and Creative Scotland have been blamed as one of the reasons for its failure.

A statement issued by Hi-Arts indicated that strategic and structural changes in both Highlands and Islands Enterprise and Creative Scotland meant that the past funding arrangements would not be continued beyond the first quarter of 2013/14, throwing the budget of Hi-Arts into disarray.

"During 2012/13 the board and staff thoroughly examined the potential for restructuring the company on a more commercial basis, which followed on from several years of preparation to compete for the renewal of existing contracts, but concluded that, given the company’s continuing obligations and the non-availability of appropriate contracts for tender, this model was not viable," added the statement.

In response, a spokeswoman for Creative Scotland stated Hi-Arts made a significant impact on the development of the arts infrastructure in the Highlands and Islands over the last 20 years.

She pointed out that the body was given funding to help it to move to a "new business model based on securing contracts for work from a number of sources", but this proved to be a failure and this is why it has been forced into liquidation.

Many organisations in Scotland have found it hard to survive in recent years in the wake of the global financial downturn.

Scottish businesswoman Sandra McClumpha, who led Fake Bake UK before the company was liquidated, was recently warned that she cannot try to sell any of the remaining stock after the company was shut down.

Need advice on Winding up Orders? Call 0800 9020123

Posted by Michael Beam

Get the Help You Deserve

0800 90 20 123

Urgent Help Call 24/7

020 7183 2606

We'll Call You

Request a Callback