Hi-Arts into liquidation after financial collapse THE main cultural development agency for the Highlands and Islands is being wound up after a financial collapse. It has blamed shake-ups in the way funds are distributed by its two principal backers for the move It emerged in April that the organisation's future had been plunged into doubt Hi-Arts, an Inverness-based outfit, with staff in Argyll, Knoydart, Skye, Lewis and Aberdeenshire, is to go into liquidation after effectively running out of money to keep operating. It has blamed shake-ups in the way funds are distributed by its two principal backers, Highlands and Islands Enterprise and Creative Scotland, for the move. It emerged in April that the organisation's future had been plunged into doubt and its 10 staff were facing redundancy due to a cash crisis caused by the ending of long-term financial agreements. Hi-Arts was set up 23 years ago by HIE and helped set up the Screen Machine mobile cinema, The Booth online box office, and an online arts journal for the Highlands. Its board members included Joe Gibbs, organiser of the Belladrum music festival, architect Neil Sutherland, Donna Heddle, head of cultural studies at the University of the Highlands and Islands, Kathleen Boal, a senior official at the National Trust for Scotland. Statement A statement issued by the board said it had decided to appoint accountants to wind up the company and appoint a liquidator. It added: "Both HIE and Creative Scotland provided transition funding for HI~Arts for the financial year 2012/13, but subsequent strategic and structural changes in both organisations have meant that past funding arrangements would not be continued beyond the first quarter of 2013/14. 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.