November 27th 2024.
The business world can be a tough one, and unfortunately, the cost of living crisis has taken its toll on one iconic seaside attraction on Britain's south coast. The beloved Brighton i360, known for its breathtaking views, is facing the possibility of closing its doors for good. It's a sad reality that the owners have had to announce their decision to enter administration due to numerous factors, including rising costs, unfavorable weather, and the overall struggle of keeping up with the cost of living.
While the tower's viewing deck will remain open during this difficult time, the business will be undergoing a financial process to review its options. This could potentially include seeking out a new buyer for the property. However, the news has been met with disappointment from Brighton and Hove City Council, who have a significant financial stake in the project. The council had initially invested millions into the project back in 2014, making them the largest creditor.
The council's leader, Bella Sankey, described the day of the announcement as a "day of shame" due to the hefty loss they are facing. She expressed her frustration at the decision to loan such a large sum of public money to a business that ultimately failed, leaving the residents of Brighton and Hove out of pocket. The council now has a debt of £51 million, with a loss of £32 million for the loan and interest repayable to the government. This will have a significant impact on the council's budget, which could have been used for essential services such as nurseries, play areas, public toilets, and preventing homelessness.
Julia Bartfield, the chairwoman of Brighton i360 Ltd, explained that the decision to seek administration was due to a significant decline in consumer spending in the country. She assured the public that they are working closely with the administrators to keep the business operating during this period and explore all possible options for restructuring. It's a tough blow for the landmark, which only opened its doors in 2016.
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