A seaside tourist attraction which owes £51 million to the council has filed for insolvency.
Bosses of Brighton seafront’s observation tower, Brighton i360, have announced the notification of administrators, blaming escalating costs, bad summer weather and the cost-of-living crisis as the reasons behind the decision.
But Brighton and Hove City Council chiefs have said the “extremely disappointing” move will hit the council’s budget after it loaned millions to the project in 2014 and remains the biggest creditor.
The viewing deck will remain open while it enters the financial process and reviews options including for administrators to try to find a buyer to rescue the tourist attraction.
The city landmark opened in 2016, after councillors agreed to take out a Government loan and pass it on to developers.
As of November 2024, the total amount owed to the council was £51 million, while the actual loss to the council stands at £32 million for its loan debt and interest repayable to the Government, the council said.
Leader of Brighton and Hove City Council and Labour leader Bella Sankey blasted the development as a “day of shame” for the Green Party, which led the authority at the time, and a “sad day” for the city.
“Their calamitous decision to loan a vast sum of public money to this failed business venture has left the residents of Brighton and Hove £51 million out of pocket,” she said.
“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.”
Council finance chief and deputy leader Jacob Taylor said: “This leaves a large unpaid amount to the city council, which will have an impact on the overall budget.
“I think it is important that the council and the city reflects on the decisions that have led us to this point – and learn lessons for the future.”
Chairwoman of Brighton i360 Ltd, Julia Barfield, said the decision comes after a “significant decline” in consumer spending across the UK and that the private company will work closely with the council throughout the process.
“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 said.
