Brighton i360’s chairwoman has blamed “escalating costs, unfavourable summer weather and the ongoing cost-of-living crisis” as reasons for filing for insolvency.

Julia Barfield confirmed the news that Brighton i360 Ltd had made the “difficult decision” to head towards administration after a “significant decline in consumer spending”.

The business will now work towards finding a buyer for the landmark but reassured employees and customers that it “remains fully operational”.

Ms Barfield, also one of the architects behind the landmark, said: “After careful consideration, we have made the difficult decision to file a notice of intention to appoint administrators.

"This decision is a direct result of escalating costs, unfavourable summer weather conditions, and the ongoing cost-of-living crisis, which have collectively led to a significant decline in consumer spending across the UK.

“We continue to work closely with the council maintaining ongoing communication and collaboration throughout this process.

“Additionally, we are working closely with the prospective administrators at Interpath to ensure the continued operation of the business during this period and to explore all potential avenues for restructuring.

“We would like to reassure both our valued employees and customers that we remain fully operational. We sincerely appreciate your ongoing support and are committed to keeping you informed with any important updates as soon as they become available.”

Brighton i360 Ltd filed a notice of intention to appoint administrators today, saddling Brighton and Hove City Council with over £51 million in debt.

The debt stems from a Public Loans Work Board loan of £36.2 million, agreed by a Green Party-led council in 2014.

The i360 was granted planning permission in 2006 and was designed by Ms Barfield and her husband David Marks, who also designed the London Eye.

Brighton i360 will now look for a buyer, but if one cannot be found the tower could be taken down.

Interpath are leading the sales process and it is understood they will be appointed as administrators.

Charlie Carter, from Interpath, said: “The Brighton i360 has become an iconic visitor attraction, welcoming hundreds of thousands of visitors each year, but unfortunately is now at real risk of closure unless a buyer can be found.”

Once administrators are appointed, Brighton and Hove City Council will rank as a secured creditor in the administration process.

Brighton and Hove City Council leader Bella Sankey said: “Today is a day of shame for the Green Party and a sad day for Brighton & Hove. Their calamitous decision to loan a vast sum of public money to this failed business venture has left the residents of Brighton & Hove £51 Million out of pocket.

“This will be their enduring legacy to the city – a huge debt that will be left to generations of residents to repay.

“Our council must now repay their folly amounting to over £2 million each year for the foreseeable future – money that could’ve been spent on nurseries, play areas, public toilets, preventing homelessness, road repairs, transitioning to Net Zero and dozens of other vital local services.”