Brighton i360 goes into administration
The council understands that Brighton i-360 Limited will file to enter into administration today (Friday 20 December).
On 27 November the council received notice from Brighton i-360 Limited of the board's intention to appoint administrators. A ten business-day extension to the ‘notice to appoint’ administrators period was given to provide more time to explore all options for investment.
Unfortunately, a buyer has not been found and the Brighton i360 will now close with immediate effect.
Councillor Jacob Taylor, Deputy Leader and Cabinet member for Finance and City Regeneration, said: “We’ve been working closely with the Brighton i360 for months to try and find a buyer and avoid this outcome, but unfortunately no viable offers have been received.
“It’s extremely disappointing that it’s come to this, and my thoughts are with the staff at this difficult time.”
“When councillors decided to back the i360 with public money in 2014 they submitted us to the market, and this is what the market has delivered.
“We will continue to work closely with Brighton i360’s administrators, Interpath Advisory, to explore further options for investment.
“The council is not in a position to take over the operation of the i360 as that would mean investing more public money in the attraction which we do not have, and I know the residents of Brighton & Hove – rightly – could not stomach.
In the new year the council will ask for an external independent audit to be carried out to understand and learn from the original decision to loan public money to construct the Brighton i360.
Councillor Taylor added: “Investment in Brighton i360 has clearly been a financial disaster for the council. Although the attraction has provided jobs, and brought in business rates, regeneration of this site did not require such high public investment and the amount of money left unpaid to the council is money we now cannot spend on frontline service delivery.
“It’s important there is an investigation into how the decision at the time of agreeing the loan came to be made and learn lessons for the future.”
Background
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 December 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.
