The council 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.
The council understands that, once the company is in administration, the administrators from Interpath will review their options generally including, 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 to rescue the Brighton i360.
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 circa £51million (consisting of the Brighton & Hove City Council loan at a commercially agreed interest rate, and the circa £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 circa £32million.
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.”
The Brighton i360 was opened in August 2016.
Plans for a major development on land next to Brighton’s West Pier were first submitted to the council on 17 July 2006. Planning permission and Listed Building Consent were granted on 11 October 2006.
To support the building of the Brighton i360, councillors agreed to take out a government loan and pass it on to developers. The loan was from the Public Works Loans Board (PWLB) – a government funding agency who made loans available to major building projects at the time.
In July 2022 councillors were asked to consider new terms for the loan made to the Brighton i360. The restructure meant that the council would take nearly all profits that the Brighton i360 made.
In February 2023 councillors agreed to a new operating strategy that gave the attraction more time to turn things around.