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| Howell's School at Denbigh announces its closure | |
| (35 minutes later) | |
| A private girls' school in north Wales says it is shutting down because of uncertainty about its finances. | A private girls' school in north Wales says it is shutting down because of uncertainty about its finances. |
| Howell's School in Denbigh has been in operation for over 150 years. | Howell's School in Denbigh has been in operation for over 150 years. |
| But in an email sent to parents on Friday, trustees said uncertainty about compensation arising from the dismissal of a former head teacher posed a risk of closure part way through the year. | But in an email sent to parents on Friday, trustees said uncertainty about compensation arising from the dismissal of a former head teacher posed a risk of closure part way through the year. |
| Steven Griffiths, vice-chairman of the parent teacher association, told BBC Wales he was "surprised" and "upset". | Steven Griffiths, vice-chairman of the parent teacher association, told BBC Wales he was "surprised" and "upset". |
| In an email sent to parents on Friday, school trustee Nicola Locke said: "Sadly and with great regret, we have made a decision to close Howells School Denbigh for full time students with effect from September 2013. | In an email sent to parents on Friday, school trustee Nicola Locke said: "Sadly and with great regret, we have made a decision to close Howells School Denbigh for full time students with effect from September 2013. |
| "We will continue to use the property for educational purposes but will not be operating the Junior or Senior school in its present form. | "We will continue to use the property for educational purposes but will not be operating the Junior or Senior school in its present form. |
| It added: "We apologise for the short notice but we consider it is not appropriate to continue as if there was no risk, and cause disruption mid-year to your daughter's education." | It added: "We apologise for the short notice but we consider it is not appropriate to continue as if there was no risk, and cause disruption mid-year to your daughter's education." |
| Compensation due | Compensation due |
| The trustees highlighted the outstanding claim against the school after it was found to have unfairly dismissed the former head teacher Bernie Routledge and his partner Helen Price. | The trustees highlighted the outstanding claim against the school after it was found to have unfairly dismissed the former head teacher Bernie Routledge and his partner Helen Price. |
| A tribunal in March ruled that the couple had been sacked without reason. | A tribunal in March ruled that the couple had been sacked without reason. |
| It had been claimed that Mr Routledge behaved inappropriately in conduct with pupils over the social network Facebook. | It had been claimed that Mr Routledge behaved inappropriately in conduct with pupils over the social network Facebook. |
| But the tribunal dismissed all the allegations against him and Ms Price, who was head of PE and pastoral care. | But the tribunal dismissed all the allegations against him and Ms Price, who was head of PE and pastoral care. |
| As yet, no compensation has been agreed. | As yet, no compensation has been agreed. |
| But in the trustees' letter to parents, Mrs Locke said the school had to accept that the award could be "large". | But in the trustees' letter to parents, Mrs Locke said the school had to accept that the award could be "large". |
| "It could be £50,000 or £500,000 but we have no way of knowing," she said. | "It could be £50,000 or £500,000 but we have no way of knowing," she said. |
| "If that award is unaffordable then our charity could face closure at short notice. We have expected a decision on the tribunal award 'any day' since May but none has been forthcoming. | "If that award is unaffordable then our charity could face closure at short notice. We have expected a decision on the tribunal award 'any day' since May but none has been forthcoming. |
| "Given that uncertainty we have decided that we should not commence the next academic year in September, rather than open as normal and risk a closure part way through the school year." | "Given that uncertainty we have decided that we should not commence the next academic year in September, rather than open as normal and risk a closure part way through the school year." |
| The letter to parents said that the school will be open from Monday to "work with you in every way possible to find a new school that is suitable for your daughter" and that re-enrollment deposits already paid would be refunded. | The letter to parents said that the school will be open from Monday to "work with you in every way possible to find a new school that is suitable for your daughter" and that re-enrollment deposits already paid would be refunded. |
| 'Material uncertainty' | 'Material uncertainty' |
| An independent auditor's report on the school finances, lodged with Companies House for the period to the end of August 2012, outlined some concerns. | An independent auditor's report on the school finances, lodged with Companies House for the period to the end of August 2012, outlined some concerns. |
| "The company made a loss during the year of £162,733 and the liabilities continue to exceed assets," the report said. | "The company made a loss during the year of £162,733 and the liabilities continue to exceed assets," the report said. |
| "There is also the potential outstanding liability with regards to the employment tribunal. | "There is also the potential outstanding liability with regards to the employment tribunal. |
| "These factors indicate the existence of a material uncertainty which may cast doubt on the Company's ability to continue as a going concern and therefore it may be unable to realise its assets and discharge its liabilities in the normal course of business." | "These factors indicate the existence of a material uncertainty which may cast doubt on the Company's ability to continue as a going concern and therefore it may be unable to realise its assets and discharge its liabilities in the normal course of business." |
| The accounts for the school, which employs 58 staff, showed it had debts of £481,135 at the end of August 2012. | The accounts for the school, which employs 58 staff, showed it had debts of £481,135 at the end of August 2012. |
| However, auditors stated in their report that bank borrowings and overdrafts amounting to some £237,000 were paid off in February this year. | However, auditors stated in their report that bank borrowings and overdrafts amounting to some £237,000 were paid off in February this year. |
| Howell's School is registered as a charitable company, with Mrs Locke and husband Robbie named as the directors. | Howell's School is registered as a charitable company, with Mrs Locke and husband Robbie named as the directors. |
| Originally called Howell's 2000 Ltd, the school's company name was officially changed to H2000 Ltd in January this year. | Originally called Howell's 2000 Ltd, the school's company name was officially changed to H2000 Ltd in January this year. |
| The school and its trustees have been unavailable for comment. | The school and its trustees have been unavailable for comment. |