One of Exeter's private schools is to close at the end of the academic year.
Governors at St Margaret’s School in Exeter took the decision after it became clear that projected attendance figures for 2013-14 meant the school was no longer financially viable.
All teaching staff will stay until August.
The head of the new 15 million pound school on the Isles of Scilly has resigned.
It comes on the day the Five Islands School is due to be officially opened by the Duke and Duchess of Cornwall.
The head, Bryce Wilby, was suspended in May over claims of financial irregularities.
The school is the biggest building project ever undertaken on the islands. It has 250 pupils, providing primary and secondary education on the main island of St Mary's.
The Education Secretary Michael Gove says he is investigating the pay of senior staff at the West Exe Academy school in Exeter. The school was recently granted academy status. His department is investigating complaints about the pay of the head and eight leading members of staff.
North Devon MP Nick Harvey says the Royal Bank of Scotland should let a community group buy St Michael's school at Tawstock, near Barnstaple rather than sell it to the highest bidder:
North Devon MP Nick Harvey is calling on The Royal Bank of Scotland to sell a failed private school to a community group rather than the highest bidder. Parents and former pupils have managed to re-open the nursery and are raising money to buy the whole site.