Parents are urged to buy share in school to keep it operating

Published on Friday 18 June 2010 10:10

PARENTS are being urged to buy a share of a crisis-hit Edinburgh private school to keep it up and running if a takeover bid succeeds.

More than 300,000 has already been donated to help save St Margaret's School in Newington, which went into administration last week.

A consortium of parents needs to raise around 2.5 million to pay off the school's existing creditors, which would enable them to take ownership of the building and start afresh with no debts hanging over their heads.

As well as the donations which have been flooding in from former pupils, teachers and parents, those behind the takeover bid are asking other parents to buy a share in the school.

So far, at least 50,000 has been pledged by a handful of parents willing to invest in the shared equity scheme, with dozens more expected to follow suit over the next few days.

Parents who invest money will be rewarded with "loyalty points" which will see them get a reduction in school fees.

The school's Parents and Friends Association said that at a meeting on Wednesday night, which half the parents of the 397 pupils attended, the "vast majority" were in support of the ownership bid.

Vice-chair of the association, Lisa Ahmed, said: "The fantastic thing was that everybody believed we could do it.

"We are looking at the vast majority of parents who are on board.

"If we are successful in our plan, we will own the property with no lease, no mortgage, no debt.

"We are proposing to offer the parents equity in the building in return for loyalty points which are redeemed against the fees.

"We have had pledges from parents already so we know people are wanting to put up some cash

"There will be people who put in a lot because it will suit them to have their money invested but it's purely voluntary and parents have the choice not to invest."

She added: "We have raised more than 300,000 in donations and there are serious discussions going on with some companies and individuals, though we would prefer to be totally self-sufficient as far as possible.

"Some parents have walked away and that's their right to do that.

"That has been factored into the equation – we have made different business models based on different pupil numbers.

"Even with 50 per cent fewer pupils, it's still viable.

"We haven't been given an official deadline as such but we need to show that we have a substantial sum of money and we have pledges and confirmation of those pledges."

The nursery is being sold as a separate entity and the deadline for bids on that is Tuesday.

It is understood all the potential bidders plan to continue to run it as a nursery and keep it as part of the school.

Mrs Ahmed added: "It will be owned separately but will be run as part of the whole ethos of the school. It will suit business people coming into this because it is just ready to go."