Twenty-three teachers are taking court action against an independent school, claiming they have not been paid for several months.
The private school in Paignton, formerly called Tower House School, is facing a hearing today (Tuesday 19 December)
Eighty-five pupils have reportedly left the school since the start of the Autumn term, with just 45 left.
Ashfords, the lawyers representing the teachers said: "On 11 December an administration application was issued against Element Schools Ltd by 23 members of staff who are owed wages.
"An application has been listed for a hearing on 19 December and until that time the company is not in administration and it will be business as usual, and staff members have continued to work despite not being paid."
Ms Clayton took over the school in May. She said: "I am absolutely committed to the future of the school and am therefore still working hard to resolve the current issues.
"We inherited some problems at the school as a result of several years of decline and underinvestment and so are also working hard to put in place a financial and strategic solution to ensure the school is put back on a stable and firm footing".
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