Brighton’s famous i360 tower has missed its loan payment following the challenges it has faced due to the lockdown conditions implemented as a result of the Coronavirus outbreak.
The amount, believed to be around £1.2 million, is owed by the structure to Brighton and Hove City Council who lent £36.2 million to the company to help fund construction.
This is not the first time that the i360 has defaulted on its payment schedule, with more than £6 million having been missing due to a shortfall in visitors to the attraction leaving it in financial difficulties.
The original loan structure, drawn up upon its conception in 2014, was amended in 2019 to reduce future instalments, supporting the business by allowing it to pay less and give more opportunity to make payments possible.
However, due to outstanding arrears and interest rates levied on the loan, the debt now owed is over £41 million and set to grow without improvements in the forecasted attendance and profitability of the tower.
A member of the council has voiced that there is an obligation by the governing body to support the i360 in order to protect the residents from the cutbacks and expenses that would be necessary should they lose such a high value investment to bankruptcy.
Julia Barfield, head of Brighton i360 Ltd, stated: ‘The three lockdown closures of our operation for many months has, like so many leisure attractions, meant we faced a huge financial challenge.
‘With such a limited time to generate income during the last year and the ongoing costs, Brighton i360 does not have the funds available for a loan payment in June.’
The tower is expecting a strong summer performance however, with the lifting of lockdown and domestic holidays believed to be the preference for many British holidaymakers.
The council is expected to be slightly out of pocket as a result of the lost payment, however councillors were not simply letting it happen.
Due to the financial implications, working with the company on the repayment of such a crucial loan in tough situations is the only solution.
Photo Credit: Harry Winter
