The i360 is to file for administration still owing £51 million to the city, the council has announced.
Brighton and Hove City Council says it has received notice from Brighton i-360 Limited, of the board’s intention to appoint administrators. The council therefore expects the company to enter administration in the near future.
It is now going to be put up for sale and administrtors Interpath say unless it finds a buyer, there’s a real risk it will close.
Charlie Carter from Interpath, who is leading the sales process said: “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.”
The council says it understands that, once the company is in administration, the administrators from Interpath will review their options.
These include continuing to keep the attraction open for the short- to medium-term while the administrators attempt to find a buyer to rescue the Brighton i360 – if financially viable and sufficient visitor demand exists.
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 c. £51million (consisting of the Brighton and Hove City Council loan at a commercially agreed interest rate, and the c. £4million 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. £32million.
Deputy council leader Jacob Taylor 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.”
Charlie Carter from Interpath, who is leading the sales process, said: “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.”
“Lessons will be learned”
As if
“learn lessons for the future” Mr Jacob Taylor?! What a great lesson when no one wanted this eye sore built in the first place. No consultation with the public was made at the time, or at least nothing more than a pretend go at one. Why should the people living in Brighton pay for this, when individuals in the (mostly Green) council agreed to it at the time. They should personally be responsible for it. An absolute disgrace.
It’s time Jason Kitcat and Geoffrey Theobold were hauled in front of a scrutiny committee and are held to account for this terrible decision. Questions should also be asked of the interim Finance Director who with Kitcat made this whole sorry mess happen.
I’m not sure who should come out of this worst, the Greens for their hubris when the visitor numbers didn’t stack up and previous similar ventures has already failed. Or the Tories who only voted for it because they wanted to score points over Labour who always opposed it.
Either way the public should be very clear who is to blame and it’s time the city got an apology.
B&H news can you please clarify what the actual loss to the council tax player is please.
The council borrowed an amount from the PWLB to lend to the i360 at a low interest rate which it then lent to the i360 at a higher rate. The difference in the interest was to be spenr on improving the sea front.
Anybody with a brain knew where this was going when Jason Kitcat and his ship of fools pushed this through. He was actually a director of Coast to capital, The intermediary between treasury and the local authority. This was an enormous conflict of interest but nobody was interested in that. Not sure how much Jason is only these days but he is rather senior at the Cabinet office now fixing their IT . An attachment on his wages would definitely help a little bit.
As usual, the people have Brighton and Hove will have to shoulder the mess that the local amateur politicians bring upon them🤬
Tom Druitt when he was a councillor and on some soft of finance team insisted on seeing a credible business plan before the council continued to bail it out. He was overruled.
Once the insolvency practitioners get involved this debt will escalate upwards. Better for the council to take it over now !
51 Million
Yet they rise Council Tax by 5% each year to help support Social Care, this could of contributed towards it couldn’t it.
thats earmarked for social without it it ASS would collapse
This whole debacle is disgraceful. The fact that many of the people involved are now promoted into other positions where they can inflict further financial harm in other areas/on other councils/residents is absolutely mind-blowing.
Never been on it, no interest in going on it.
Turn it on its side and run a shuttle between the piers
Should of saved the West Pier.
I have to remind everyone that Greens, Labour and Tories all voted to borrow to lend Marks Barfield Top-up money to get the i360 erected. Only when all the private financing evaporated and Marks Barfield came again with the begging bowl – and needing full financing – did Labour hang back. What did labour do? Labour abstained!!!! Not even a refusal to approve by voting against. It was a canny move! Labour was in up to their eyeballs for a long time backing the i360 just as the Tories and Greens did.
The council gambled and the council lost big time. It was always going to be a risky loan, a high risk loan But they needed to earn money for the council somehow. The interest payments were expected to be 1 million £ a year. Private finance did not withdraw backing without reason! This is a sad outcome.
I live opposite the i360, residents told the council they would not get the estimated visitor numbers. Even in summer the area is deserted on bad weather days. This time of year you don’t see many visitors. The council is to blame for funding part of the project. Its also badly managed and in darkness early evening even in the summer. The buildings around the i360 should be used around the clock to help fund it with bars/nightclub/restaurants etc. The pod could be used as a bar at night doing hours takeoffs( a porta loo could easily be added it already has a bar). Or the whole complex could be made a Star Wars attraction, Basically what i am saying is the i360 opted for the upper market weddings etc so the buildings around it are not used enough.
I have been on the i360 a few times and enjoyed it, its built now so it needs to be used to its full potential.