Seaside landmark to file for administration owing taxpayers £51m

The company which owns Brighton’s landmark observation tower is expected to file for administration.
The i360 was officially opened by the Duke of Edinburgh back in 2016.
Brighton and Hove City Council has received notice from Brighton i-360 Limited that the board intends to appoint administrators.
The council says it expects the company to enter administration in the near future.
The council understands that, once the company is in administration, various options will be considered.
The administrators from Interpath will consider, if financially viable and sufficient visitor demand exists, continuing to trade the business and keep the attraction open for the short to medium term while the administrators attempt to find a buyer.
Brighton i-360 Limited is a private limited company, which the council loaned money to in 2014. The council remains the major creditor.
As of November 2024, the total amount outstanding from the Brighton i360 under the financing agreement is approximately £51 million, consisting of the Brighton & Hove City Council loan at a commercially agreed interest rate, and the approximately £4 million 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 approximately £32 million.
Councillor Jacob Taylor, Deputy Leader and Cabinet member for Finance and City Regeneration, said: “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 reflects on the decisions that have led us to this point – and learn lessons for the future.”
Julia Barfield, Chair of Brighton i360 Ltd, said: “After careful consideration, we have made the difficult decision to file a notice of intention to appoint administrators.
“This decision is a direct result of escalating costs, unfavourable summer weather conditions, and the ongoing cost-of-living crisis, which have collectively led to a significant decline in consumer spending across the UK.
“We continue to work closely with the council maintaining ongoing communication and collaboration throughout this 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.
“We would like to reassure both our valued employees and customers that we remain fully operational. We sincerely appreciate your ongoing support and are committed to keeping you informed with any important updates as soon as they become available.”
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