CCS chairman Paul Nolan disputed the local authority's claim and warned that the closure would be a disaster for its 28 staff, 202 children and the deprived community of Craigmillar.
Director of education Roy Jobson had written to the Craigmillar Partnership, which distributed council money to the CCS, warning that the funding would be withdrawn. He said a council investigation into CCS had revealed 'concerns about the current financial position'.
The local authority said CCS had amassed debts of 105,000. A council spokesman said, 'Our auditors have advised us that the company is insolvent and that it would be inappropriate to give them public money.' The council was withholding 45,000 in grants - 25,000 awarded through the Craigmillar Partnership and 20,000 through Edinburgh Childcare Partnership.
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