The Brighton i360, an iconic 162-meter observation tower on the Sussex coastline, has filed for administration, leaving its future hanging in the balance.
Opened in 2016 and envisioned as Brighton’s answer to the London Eye, the attraction now faces potential closure unless a buyer is found.
The i360’s operators, Brighton i360 Ltd, cited rising costs, adverse weather, and the UK’s ongoing cost-of-living crisis as key factors leading to its financial troubles.
These challenges have resulted in a significant decline in consumer spending, the company said in a statement. Despite the filing, the attraction will remain operational as administrators search for potential buyers.
Charlie Carter, associate director at Interpath and leader of the sales process, emphasized the urgency of the situation.
“The Brighton i360 has become an iconic visitor attraction, welcoming hundreds of thousands of visitors each year, but unfortunately is now at real risk of closure unless a buyer can be found,” he said.
A Long History of Financial Struggles
The i360’s financial problems have persisted since its inception. Initially planned as a privately funded project, the 2008 financial crisis forced developers to seek public funding.
Brighton and Hove City Council took out a £36.2 million loan from the Public Works Loan Board to support the development, despite opposition from residents concerned about the use of public funds.
The tower has struggled to meet visitor targets required to repay its debt. While initial estimates suggested the attraction needed 347,000 annual visitors to cover loan repayments, the i360 has averaged 268,429 visitors annually since opening, with a total of 1.88 million visitors over seven years.
In 2022, Brighton i360 Ltd renegotiated its loan terms with the council, agreeing to share nearly all profits.
However, the changes failed to reverse its fortunes, and the tower has now amassed £51 million in debt, with the council facing a net loss of £32 million, including loan interest.
Political Fallout and Public Backlash
The financial collapse has sparked a political blame game. Bella Sankey, leader of the Labour-run Brighton and Hove City Council, criticized the Green Party’s decision to back the loan, calling it a “calamitous decision” that left the city £51 million out of pocket.
“Our council must now repay their folly, amounting to over £2 million each year for the foreseeable future – money that could’ve been spent on nurseries, play areas, public toilets, preventing homelessness, and dozens of other vital local services,” Sankey said.
Green Party councillor Steve Davis acknowledged the project’s failure but highlighted its role in regenerating a neglected part of the city.
“The i360’s history spans nearly two decades across both Green and Labour administrations. Alongside the i360 came a huge amount of regeneration … there is collective responsibility for both the positives and downsides to this investment in our city,” he said.
Lessons for the Future
Brighton’s councillor for finance, Jacob Taylor, called for reflection on the decisions that led to the i360’s predicament.
“This leaves a large unpaid amount to the city council, which will have an impact on the overall budget,” Taylor said. “It is important that the council and the city learn lessons for the future.”
Once hailed as a symbol of ambition, the Brighton i360 now stands as a cautionary tale of risky investments and the challenges of sustaining landmark attractions in volatile economic times
This article was created using automation technology and was thoroughly edited and fact-checked by one of our editorial staff members
