The group behind Brighton Pier has been awarded 1.4 million in business interruption payments in order to secure its liquidity on an ongoing basis.
The company, previously in the headlines for the strong views of chairman Luke Johnson, has received this sum as a result of insurance policies that have been challenged in both the high and supreme courts before this award.
Whilst this sum will not meet the entire amount they claim to need, the pay-out supports their ongoing cash flow situation which the company reports to be continuously strong.
The Brighton Pier Group is responsible for the Brighton Palace Pier, 12 bars and 8 mini golf establishments in the region with previously having needed to write off over £8 million due to the effects of the pandemic.
As a result, the company lost £10.2 million last year in stark contrast to the £2.9 made in profit from their 2019 period.
Full year revenues dipped 41% to 22.6 million in 2020 with net income down 48% to £2.5 million.
In response, CEO Anne Ackford said “ Whilst business interruption insurance is welcome, and the rollout of the vaccination provides a route back to normality, we are keen for the Government to announce of recovery roadmap for the tourism and hospitality sectors”.
“If businesses in the night-time economy sector continue to be subject to restrictions after the end of lockdown, the Government needs to recognise that further ongoing financial support will be required”
The night-time economy has become a significant worry for many businesses in the tourism and hospitality now that it has been an entire year since restrictions were put in place.
Nightclubs, bars and other industries are facing the same kinds of ongoing pressure yet without pay-outs such as this one and continued lack of government support, there is a very real fear that a significant amount of Brighton’s tourism led locations may not be able to reopen again once restrictions are lifted.
Photo Credit: Viktor Forgacs