Leaders of the Delamere Forest special needs school in Manchester have admitted defeat in the fight against closure. But they have pledged that Delamere will continue as an advisory charity.

"The school has definitely closed but the charity will go on," said governors' chair Malcolm Joels, confirming that Delamere had failed to raise the £500,000 needed to secure its survival. The final classes were last week.

Most of the 17 pupils have found alternative schooling for September. Some will be absorbed into the Inscape House autistic school in Salford, where Delamere had relocated as a stand-alone Jewish facility a year ago.

The school's original premises will probably be sold to a green energy company for conversion into offices. Money remaining after debts are covered will be used to sustain Delamere's future charitable work.