THE educational future of more than 500 students is in doubt after the Uniting Church announced it is closing Acacia College in Melbourne's north at the end of the year.
The church said on Wednesday night it was in discussions with a number of parties to sell the school and keep it open under a new provider.
Mounting debts have been cited for the reasons behind the school closure.
Synod Moderator Isabel Thomas Dobson said it was "a heart wrenching decision" to close the school.
"This is a decision the Uniting Church takes full responsibility for and in no way does it reflect the sustained efforts Acacia's professionals have made to build it into a reputable education provider," Ms Thomas Dobson said.
She said the closure places extreme pressure on staff, parents and students.
"We will endeavour to find a solution to keep the school operational and will do everything we can to support staff and parents during this difficult time," Ms Thomas Dobson said.
Acacia College, with students from Prep to Year 9, opened in February 2010 in the rapidly expanding northern growth corridor of Melbourne.
Ms Thomas Dobson said the Property Board of the Uniting Church had become aware in recent weeks of cost overruns and unanticipated financial obligations.
She said there had been substantial costs associated with the construction work of an over-committed developer who was unable to fulfil contractual obligations and had since died, as well as local council compliance-related costs and a consequent legal dispute with the deceased estate.
In June, Mowbray College, which had campuses in Melbourne's west offering prep to Year 12 classes, closed with debts totalling around $18 million.
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