A seaside attraction which owes £51m to a council that helped set it up faces “real risk of closure” as it files for insolvency.
Bosses of Bosses of Brighton seafront’s observation tower have blamed soaring costs, a summer marred by poor weather and the cost-of-living squeeze for its precarious situation. Brighton and Hove City Council said the “extremely disappointing” move, poses a serious blow to its finances following a multi-million-pound loan provided to the project back in 2014 — making it the principal creditor.
The towering 162-metre-high viewing platform is still open to guests even as it goes through a financial review, with options on the table including administrators potentially looking for a purchaser to buy the beleaguered tourist attraction.
Charlie Carter, representing Interpath who are looking for a new buyer, said: “The Brighton i360 has become an iconic visitor attraction, welcoming hundreds of thousands of visitors each year, but unfortunately is now at real risk of closure unless a buyer can be found.”
Since opening its doors in 2016 after local councillors endorsed the idea of procuring a Government loan to forward to the developers, the council is now saddled with a debt totalling £51m as of November 2024. Moreover, the council admits to a significant loss of £32m, which includes both the loan itself and interest repayable to the central Government.
Bella Sankey, Leader of Brighton and Hove City Council and Labour leader, has slammed the Green Party for what she calls a “day of shame” and a “sad day” for the city.
She said; “Their calamitous decision to loan a vast sum of public money to this failed business venture has left the residents of Brighton and Hove £51m out of pocket.
“Our council must now repay their folly amounting to over £2 million each year for the foreseeable future – money that could’ve been spent on nurseries, play areas, public toilets, preventing homelessness, road repairs, transitioning to net zero and dozens of other vital local services.”
Jacob Taylor, the council’s finance chief and deputy leader, acknowledged the financial strain, saying: “This leaves a large unpaid amount to the city council, which will have an impact on the overall budget.”
He called for reflection and learning from past decisions. Meanwhile, Julia Barfield, Chairwoman of Brighton i360 Ltd, cited a “significant decline” in UK consumer spending as a factor in the decision and assured cooperation with the council and prospective administrators at Interpath to maintain operations and seek restructuring options.
“Additionally, we are working closely with the prospective administrators at Interpath to ensure the continued operation of the business during this period and to explore all potential avenues for restructuring,” she confirmed.
Brighton and Hove City Council’s Green Party leader Steve Davis said: “The i360’s history spans nearly two decades across both Green and Labour administrations,
“Alongside the i360 came a huge amount of regeneration for a long-neglected part of the city, the benefits of which are still being felt today, and there is collective responsibility for both the positives and downsides to this investment in our city.”
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