War of words after Brighton's i360 enters administration
The seafront attraction is facing debts of £51 million
Last updated 28th Nov 2024
The collapse into administration of the i360 tower in Brighton has led to a large dispute over who is responsible for the seafront attraction's financial troubles.
Bosses of Brighton seafront's observation tower announced they had filed for insolvency yesterday (Wednesday 27th), 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 162m high 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.
Charlie Carter, from Interpath, who is leading the sales process, 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."
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.
Brighton and Hove City Council's Green Party convenor Steve Davis urged for the best positive outcome from the situation being in the interests of the council and city residents.
"The i360's history spans nearly two decades across both Green and Labour administrations," he said.
"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."