The Sick Kids Friends Foundation is to scrap the jobs of all ten staff that worked on the now-defunct New Pyjamas campaign which cost £500,000 over two years but only raised £60,000.

The New Pyjamas campaign was launched in September 2008 to raise £15m for the new Edinburgh Royal Hospital for Sick Children. However, it has been scrapped by trustees following disastrous financial mismanagement. The campaign’s director Elaine McGonigle is currently suspended and the charity is being investigated by OSCR.

The New Pyjamas campaign will now be consolidated into the main body of the Sick Kids Friends Foundation.

David Reith, chairman of the trustees of the Sick Kids Friends Foundation, said: “We want to thank the staff who worked on the New Pyjamas campaign for their dedication, effort and hard work.

“Regrettably, all staff will be made redundant and we wish them the best for the future.”