Kilgraston, which was founded in 1930, had about 170 pupils and 116 staff.
It said that it faced a shortfall of about £860,000 for the forthcoming academic year.
A spokesperson for the school’s board of trustees said: “Last year was extremely difficult for the Kilgraston community, as we faced significant challenges to keep the school open.
“Education provider Achieve Education stepped in to financially support and manage the school in the short term and to buy the school in the longer term.”
Achieve Education had initially planned to purchase the school last month.
In a letter to parents, it said that the provider’s chairman was suffering from ill health, which had led him to reassess his commitment to the purchase.
The spokesperson added: “At this point, we have three priorities: the welfare of staff, the welfare of pupils; and assistance for parents in finding places for their children at other schools.
“We will do all we can to help ensure a smooth transition for all affected.
“We are very sorry not to be able to continue operating a school that is close to all our hearts.”
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