Brighton i360 files for administration amidst debt challenges

The i360 viewing pod, located in Brighton, has initiated administration proceedings, casting doubt on the future of the seafront tourist attraction. Brighton i360 Ltd, the company operating it, still owes £51m to Brighton & Hove City Council, as stated by the council. Julia Barfield, who chairs Brighton i360 Ltd, attributed this decision directly to rising costs, adverse summer weather, and the prevailing cost-of-living crisis. Ms Barfield further stated that the attraction will continue to operate fully while it investigates all possible restructuring options. The council indicated its expectation for Brighton i360 Ltd to formally enter administration imminently. The authority also noted that administrators would subsequently assess their choices, which include maintaining the attraction’s operation for the short to medium term, provided it is financially viable and visitor demand is adequate, concurrently with efforts to locate a buyer. Deputy council leader Jacob Taylor commented: “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.” In 2014, the council had committed to lending £36.2m to Brighton i360 Ltd for the construction of the 531ft (162m) tower, with these funds originating from the government’s Public Works Loan Board. Last December, council leader Bella Sankey reported that the company had made a payment of £250,000 towards its debt for that year, although the required annual sum was £1.49m, with installments scheduled for June and December. As of January this year, the i360 had repaid £5.8m. Nevertheless, according to its initial repayment plan, it was obligated to have paid nearly £18m by September 2023. The council clarified that the £51m debt comprises the council loan, which carried a commercially agreed interest rate, and the £4m loan from Coast to Capital. The final payment remitted to the council occurred in June 2023. “The actual loss to the council relates to the underlying loan debt and interest repayable to government which stands at c. £32m,” the council stated.