The Brighton i360 observation tower is set to enter administration, Brighton & Hove City Council announced today, following a notice of intention filed by Brighton i360 Limited. Interpath, the appointed administrators, will evaluate options to maintain operations temporarily while seeking a buyer to rescue the landmark attraction.
Financial Fallout for the Council
The council, which loaned significant funds to the project in 2014, is the major creditor. As of November 2024, the outstanding debt stands at approximately £51 million, including a £4 million loan from Coast to Capital. The council’s actual financial loss is estimated at £32 million, tied to the underlying loan debt and associated government interest.
Deputy Leader and Cabinet Member for Finance and City Regeneration, Councillor Jacob Taylor, expressed disappointment:
“It is extremely disappointing that the Brighton i360 is filing for administration. 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 reflect on the decisions that have led us to this point – and learn lessons for the future.”
Decline in Performance
Brighton i360 Ltd chairwoman Julia Barfield attributed the decision to escalating costs, poor summer weather, and the cost-of-living crisis, which has dampened consumer spending. She emphasized the company’s commitment to maintaining operations during administration:
“We continue to work closely with the council and the prospective administrators at Interpath to ensure the continued operation of the business during this period and to explore all potential avenues for restructuring.”
A Troubled History
Opened in August 2016, the i360 was envisioned as a transformative addition to Brighton’s seafront. The council supported the project with a Public Works Loan Board (PWLB) loan, hoping to stimulate local regeneration.
However, the attraction faced financial difficulties, leading to loan restructures in 2022 and 2023, giving the i360 more time to stabilize. Despite these efforts, repayments ceased in June 2023, compounding the financial strain on the council.
What’s Next?
While the administrators assess the potential for continued operations, the future of the i360 remains uncertain. For now, Brighton residents and visitors are reassured that the attraction will remain open during the administration process, but the long-term viability depends on finding a buyer willing to invest in the iconic yet troubled tower.
This development raises significant questions about public investment in large-scale projects and underscores the need for cautious decision-making in future regeneration efforts.
Stay tuned for further updates as the story unfolds.
