Brighton's debt-hit i360 files for administration

The i360 viewing pod in Brighton has filed for administration

The i360 viewing pod in Brighton has filed for administration, leaving the future of the seafront tourist attraction uncertain.

Brighton i360 Ltd remains £51m in debt to Brighton & Hove City Council, according to the authority.

Julia Barfield, chair of Brighton i360 Ltd, said the decision was a direct result of escalating costs, unfavourable summer weather conditions and the cost-of-living crisis.

It will remain fully operational while it explores all potential avenues for restructuring, Ms Barfield added.

The council said it expected Brighton i360 Ltd to enter administration in the near future.

Administrators will then review their options, including, if financially viable and sufficient visitor demand exists, to keep the attraction open for the short to medium-term, while the administrators attempt to find a buyer, the authority added.

'Collective responsibility'

Deputy council 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.”

The authority'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.

He said the i360's history spanned nearly two decades across both Green and Labour administrations.

"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," he added.

In 2014, the council agreed to lend £36.2m to Brighton i360 Ltd to fund the 531ft (162m) tower - money which came from the government's Public Works Loan Board.

In December last year, council leader Bella Sankey said the company had paid £250,000 towards that year's debt, but the annual total should have been £1.49m, with payments due each June and December.

In January this year, the i360 had repaid £5.8m. However, under its original repayment schedule, it had been due to pay almost £18m by September 2023.

The council said the £51m debt consisted of the council loan at a commercially agreed interest rate, and the £4m Coast to Capital loan.

The last payment to the council was made 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 said.