Council advises that HME Services, the company engaged to deliver specialist sound and lighting equipment for the Roxy, entered voluntary liquidation in August. PKF in Brisbane has been appointed as the administrators.
HME Services was a well-respected Australian company, specialising in sound and lighting designs and fit-outs in the creative arts industry. HME counted the Sydney Opera House, Etihad Stadium and the ABC among its many clients.
From what Council has gleaned, it seems that a multi-million dollar project in QLQ left HME badly out of pocket and a serious road accident saw the company without a managing director for several months.
The HME sound and lighting contract for the Roxy was worth $868K, with Council having paid $300K as a milestone one advance payment on 31 March 2023 for the procurement of specialist equipment which, contractually, immediately became Council owned goods. It has, however, recently been determined that the goods were never actually ordered by HME.
Deputy Mayor and Portfolio lead for Arts and Culture, Cr Michael Kidd, said the news was very disappointing but, as always, the show must go on.
"To have not one but two companies go belly up on this project is extremely unfortunate … even unprecedented. The loss will hurt but we are determined to brush off the dust and get back to looking for additional funding opportunities to close the gap," he said.
Council's Project Manager who attended the HME creditors' meeting, Gideon Vos, said that while Council is unlikely to see the money back, this news would not affect the project delivery timeline.
"Our focus right now is on getting in the steel reinforcement which means we still have time to procure integrated elements of the sound and lighting equipment with our remaining funds. The big relief is that HME did complete shop drawings for the integrated fit out and the liquidators have agreed to release those drawings to us which will be helpful," he said.
In the meantime, the Roxy Project Management Office is investigating other funding options and is speaking to the grant funders who have co-funded the specialist equipment.
Council has been and will continue to share regular fortnightly updates on how the Roxy Project is progressing on social media and the Council website.
