The Menorah Grammar School for Orthodox boys in Edgware has gone into liquidation for the second time in less than two years. But the 150-pupil school will remain open.
Former governor Stephen Goldberg said on Wednesday that the latest liquidation was the result of the school's new governors wanting to go through a "restructuring process.
"This was the method the new board decided to adopt. Times are hard and parents must be urged to pay their fees as much as possible, but we are still up and running with pupils."
In January 2009 Menorah Grammar School Limited had debts of £322,000 and just £1,200 in the bank. The company which owned the school changed its name to Menorah Grammar School 5769 Limited. There will now be another name change.
The school is mortgage-free as it owns its building and the land.
It also houses the Menorah Foundation Primary, which is believed to be unaffected by the financial difficulties.
Menorah Grammar was founded as a charity in 1978. It changed status to a limited company in 2002 so that trustees would not be personally liable for debts.
Ofsted reported last year that standards were good in every department.
School head Kevin Brown said: "The school went into liquidation on October 19.
"No staff have been asked to leave - we were all technically made redundant - but everyone is now back on board.
"I'm here as a headteacher to get the school in shape. I've handled three schools before this one in the same kind of situation.
"I wish we'd made the structural changes right at the beginning," he added. "We have made cuts to security and changes to the school day. We won't make cuts to teaching. We've kept parents informed all the way."