The developers behind the Brighton Wheel ran a major tourist attraction which collapsed with thousands of pounds in debts.

Grahame Cleveley and Jeffrey Sanders were directors of London-based Coasta Ltd which operated the failed Treasure Island attraction in Royal Parade, Eastbourne.

The company went into voluntary liquidation in March owing Eastbourne Borough Council around £60,000.

According to Companies House the two men are now directors of Paramount Attractions, the firm which plans to build the big wheel on Brighton seafront.

Councillors have approved the £6 million proposals for the 45 metre high ride known as the Brighton Wheel, describing it as an “economic boost”

to the city.

Paramount Attractions now expects to set up the attraction in Madeira Drive, Brighton, in time for the summer school holidays in the third week of July.

A spokesman for Brighton and Hove City Council said officers were aware of the problems with the Treasure Island attraction.

He said: “The deal has measures in place to protect the council from the sort of problems Eastbourne council was left with.

“We intend getting a bond guaranteeing payment of rent and dismantling costs. If there is a default, the person putting up the bond must pay.

That would cover any insolvency too.”

Karen Howkins, a director at Paramount Attractions, said the Eastbourne attraction was a victim of the recession.

She said: “Paramount, the company behind the Brighton Wheel, is a completely different entity to Coasta Ltd. Paramount has secured full private funding of £6 million and Brighton and Hove City Council is satisfied that the funding is in place.

“The Brighton and Hove business and local community are overwhelmingly in support of this new attraction, which will create at least 30 new full-time jobs and provide a welcome boost to existing tourist related businesses.”

A spokesman for Eastbourne Borough Council said there had been a high level of interest in taking over the Treasure Island site from potential operators.

He said: “We are working closely with administrators Begbies Traynor to ensure the site is back in action as a leading regional tourist attraction as soon as possible.”