School to close over financial problems

Brantwood Independent School for Girls in Nether Edge will shut from next Friday after the Royal Bank of Scotland (RBS) pulled the plug on its finances.

The school had been struggling financially due to the recession and had loans with RBS, secured against the value of the school building and grounds – initially estimated at 1m.

However, RBS produced a valuation of 600,000, which it says is a "more realistic" figure, based on the property being sold for purposes other than as a school. The bank then offered the school a credit line for 100 per cent of that valuation.

Chairman of the governors, John Boyington, said: "Whilst we recognised the extent of the support we were seeking we were confident that RBS were working hard to help us try to secure a more managed closure package.

"However, at a meeting on Monday with new colleagues from RBS, we were unable to secure their support for a managed closure at the end of the summer term or indeed at the end of the spring term.

"The level of support that they were willing to extend left us with no option but to close the school in a pre-emptory manner. This is a bitter disappointment."

More than 30 staff are now facing redundancy and 128 girls aged between three and 16 have to find a new school.

Three private schools in the city – Ashdell School, Westbourne School and Sheffield Girls High School – have all said they will take former Brantwood students and not charge fees for the remainder of the spring term.

A spokesman for RBS stressed the decision to close Brantwood school had been made by the governors, not the bank.

"Everyone understands the school can't continue. Whilst this is deeply regrettable, it would be irresponsible to risk further losses to a business which isn't viable. Such losses would not be in the interests of the school, the governors, or the bank."