A seaside attraction which owes £51 million to the council appears to be facing imminent closure as it files for insolvency. Brighton i360 Ltd, the company behind the iconic observation tower, has notified administrators, citing mounting operational costs, uncooperative weather during peak tourism seasons, and the pervasive cost-of-living crisis as the main culprits behind this distressing move.
Initially launched to much fanfare, the Brighton i360 has, over its years of operation, welcomed hundreds of thousands of visitors annually to its 162-meter high viewing deck. Yet, onlookers now face the stark reality as the facility grapples with significant financial turmoil. Despite its solid debut back in 2016, the landmark has struggled to maintain financial viability, with Brighton and Hove City Council being its principal creditor.
Brighton and Hove City Council, having originally provided millions through government loans to help get the project off the ground, have expressed serious concerns over this development. Council leaders describe the situation as "extremely disappointing," highlighting the significant impact this will have on their budget. The accumulated debt to the council now stands at £51 million, sharply impacting local finances and undermining services residents depend upon.
Bella Sankey, the city council's Labour leader, referred to the situation as "a day of shame" for the Green Party – the body which initially ran the council and made the decision to fund the venture. She criticized the former council for its "calamitous decision to loan public money" to what she described as a failed business venture and pointed to the resultant financial strife as leaving residents of Brighton and Hove at least £51 million out of pocket.
Adding to the gravity of the situation, Brighton i360’s total outstanding payments include £32 million on the loan itself plus applicable government interest. This unfortunate financial predicament has raised eyebrows, with predictions now forecasting the council could be responsible for repaying over £2 million annually long after the attraction's potential closure.
Julia Barfield, chairwoman of Brighton i360 Ltd, has publicly acknowledged the operational challenges facing the attraction and stated, "The decision to head toward administration follows a significant decline in consumer spending across the UK." She affirmed the company’s commitment to working closely with council officials during this tumultuous period, emphasizing their goal of identifying potential buyers willing to save the attraction.
Charlie Carter, from the financial consultancy Interpath, is charged with overseeing the sales process. He revealed, "Unfortunately, the Brighton i360 is at real risk of closure, and we are exploring all options, including identifying interested buyers." There remains hope as the viewing platform continues to operate through this challenging phase, with the directors and administrators actively seeking new ownership possibilities to avert total shutdown.
The council had taken on substantial risk when it agreed to finance the observation wheel’s construction, utilizing borrowed funds to commission its development through private companies. It was expected to bolster not just tourism revenues but also appeal to locals and offer long-term financial benefits to the city’s economy. The hard-hit council is now left to assess how to recover its assets as the i360 theme park heads toward potential ruins.
Some council members underline the strategic efforts undertaken to revitalize Brighton and its surrounding areas, pointing out how the observation tower has contributed to local regeneration. Steve Davis, the Green Party convenor, commented, "The history of the i360 spans nearly two decades across both Green and Labour administrations, alongside which came significant regeneration benefits for parts of the city previously neglected. Our shared accountability for the highs and lows of this venture cannot be overstated." He urged collaborative efforts to trace the best outcome for the council and city residents.
While the Brighton i360 continues to welcome visitors, the question remains: will it find the prospects for new ownership before facing the grim fate of permanent closure, or will it fade away like the remnants of the city's historic West Pier beside which it stands?
For now, the financial process begins, alongside urgent discussions led by the administrators, about the future of this once-celebrated coastal attraction. There is still hope for recovery, with the commitment to sustainability remaining front and center even as challenges mount. The drive to keep the Brighton i360 operating might just hinge on finding the right buyer committed to revitalizing the landmark at the heart of Brighton's seaside ecosystem.
