Camila Batmanghelidjh, the founder and president of the children’s charity Kids Company, has confirmed that the charity has closed.
Speaking to BBC Radio 4’s The Report programme, an emotional Batmanghelidjh said the charity would close at 7pm on Wednesday and the charity would have to "abandon a lot of children".
In a short interview, she said: "That’s it, that’s the end of Kids Company. A bunch of rumour-mongering civil servants, ill-spirited ministers and the media, on the back of a range of rumours, put the nail in this organisation and shut it."
The charity, which employs 580 staff, has been subject to intense media scrutiny since it was claimed that a Cabinet Office condition for releasing a £3m grant was that Batmanghelidjh stand down as chief executive, which she did.
Ministers had awarded the grant against the advice of civil servants in the department.
BBC’s Newsnight last night claimed that the Cabinet Office was trying to recover the grant because conditions attached to its use had not been met. A spokesman for the Cabinet Office declined to comment on that claim this morning.
It emerged last week that police had begun an investigation into alleged child abuse at the charity.