Sky high debts force Brighton i-360 to file for administration

Brighton’s iconic observation tower, Brighton i-360, has reportedly filed a notice of intent to appoint administrators. IP firm, Interpath, look set to deal with the debt ridden attraction controlled and owned by Brighton i-360 Ltd.

According to the Brighton & Hove City Council website, as at November 2024, the private company owed it £51 million pounds which consists of the “Brighton & Hove City Council loan at a commercially agreed interest rate, and the circa £4million Coast to Capital loan”.

The i-360 was built in the hope of resuscitating Brighton’s flailing tourist scene. It received planning permission in 2006 and opened in August, 2016 amidst hype that it would reinvigorate the local economy with its magnificent 360 degree view of Brighton’s skyline and seafront.  The company appeared to start well and by 2018 the company had projected revenue of £11million.

A visit to the company’s website reveals an array of activities which can be enjoyed 450 feet high in the sky. From pilates and yoga to enjoying cocktail drinking events and disco extravaganza events including a new years disco. Visitors can climb up, walk around and drop from the iconic attraction and can even meet Santa 450ft high in the sky this weekend. 

However, despite initial optimism that the seafront attraction would provide significant benefits including job creation, enhancing local tourism and improving economic growth in the area, it has been beset with financial struggles.

By 2021, the company accounts showed that revenue had dropped to just £2.9million. By 2022 the official sponsor, British Airways had decided to pull out of its deal amidst concerns of the financial stability of the company.  In October 2022, Brighton’s local newspaper, The Argus, revealed that the council’s decision to fund the project had been swayed by over inflated projections. In June 2023 the council’s debt had reached approx. £48million.

Brighton & Hove Counsillor Sankey, said: “Today is a day of shame for the Green Party and a sad day for Brighton and Hove.”  He went on to say “Their calamitous decision to loan a vast sum of public money to this failed business venture has left the residents of Brighton and Hove £51 million out of pocket. This will be their enduring legacy to the city – a huge debt that will be left to generations of residents to repay”.

Councillor Jacob Taylor, Deputy Leader and Cabinet member for Finance and City Regeneration, said: “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.”

Chair of Brighton i360 Ltd, Julia Barfield, attributed the decision to file for administration to being a “direct result of escalating costs, unfavourable summer weather conditions and the cost-of-living crisis.” She went on to say “It will remain fully operational while it explores all potential avenues for restructuring”.

The council understands that administrators will consider all options including rescuing the company as a going concern which may involve finding a buyer if financially viable and visitor demand exists. There are, however, fears that the prospective buyer may decide to demolish the attraction in favour of an alternative more lucrative development.