Brighton‘s financially troubled i360 tower has closed with immediate effect, with the owners confirming 109 job losses just days before Christmas.
The 162metre observation tower, which sits on the coastal city’s seafront and was designed by architects of the London Eye, opened in 2016.
But owners Brighton I360 Ltd, failed to pay £51million of debt to the local council, which funded the tower’s construction using money from the government’s Public Works Loan Board in 2014.
Debts accumulated when the attraction was hit by a fall in visitor numbers during the pandemic, while additional attractions such as a roller skate rink also affected ticket sales.
The company last month filed a notice of its intention to appoint administrators, who today informed staff they had been made redundant after the company failed to find a new buyer.
In a statement, Brighton & Hove City Council said it would investigate ‘how the decision at the time of agreeing the loan came to be made and learn lessons for the future.’
It added that it would not be taking over the operation of the attraction or investing any more money into it, with the £51million debt considered ‘a financial disaster for the council’.
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.
Brighton’s financially troubled i360 tower has closed with immediate effect, with the owners confirming 109 job losses just days before Christmas
Owners Brighton I360 Ltd, failed to pay £51million of debt to the local council, which funded the tower’s construction using money from the government’s Public Works Loan Board in 2014
‘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.’
The council added that around £51million is still owed, with the last payment made by the owners in June 2023.
Brighton’s i360 was designed by architects David Marks and Julia Barfield, and built on the site that used to marked the entrance to Brighton’s ruined West Pier, before it burned down.
Local residents however were not surprised by the news of its closure and said the £18.50 adult ticket price was too hefty for what the attraction offered.
Debts accumulated when the attraction was hit by a fall in visitor numbers during the pandemic, while additional attractions such as a roller skate rink also affected ticket sales
Brighton & Hove City Council said it would not be taking over the operation of the attraction or investing any more money into it, with the £51million debt considered ‘a financial disaster for the council’
‘We never went up on it. It never occurred to me why we would,’ one told BBC News.
‘The view around is not particularly attractive. And it was quite expensive, so I could not understand the attraction.’