BBC News - 6th March 2010
A campaign set up to raise £15m for the new Edinburgh Royal Hospital for Sick Children is to close amid an investigation into its management.
The Sick Kids Friends Foundation said the New Pyjamas campaign would be closed with immediate effect.
As a result, all 10 New Pyjamas staff will be made redundant.
The campaign was launched in September 2008, but Scotland's charity watchdog was brought in last month to investigate it.
The campaign's chairman, Graeme Millar, quit last month and its director, Elaine McGonigle, was suspended.
The trustees of the Sick Kids Friends Foundation recently entered a period of consultation with New Pyjamas staff due to concerns that, in its current form, the campaign would be unable to meet this target as costs were running far in excess of income.
New Pyjamas will now be consolidated into the main body of the Sick Kids Friends Foundation.
David Reith, Sick Kids Friends Foundation trustees chairman, said: "We want to thank the staff who worked on the New Pyjamas campaign for their dedication, effort and hard work.
"However, it became clear to the trustees that the New Pyjamas campaign would not, under its current structure, meet the targets initially set out.
"The trustees have a duty to act decisively and in the best interests of the New Pyjamas campaign and the Sick Kids Friends Foundation as a whole.
"Following our consultation with staff it has now been agreed that the best course of action for everyone involved is that New Pyjamas is closed.
"Regrettably, all staff will be made redundant and we wish them the best for the future."
The Royal Hospital for Sick Children is due to move from its current site in Sciennes in 2013.
See also:
Sick Kids fundraiser had secret second job for Rosslyn
Children's hospital charity in financial crisis
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