Galashiels Academy’s sponsorship deal with a tyre firm has hit the skids after advertising signs had to be pulled down.
Senior staff at the school agreed a financial package with the local company during the summer and boards were erected throughout the school grounds.
However, the day before pupils were due to return from the school holidays this week the controversial signs were removed.
Education chiefs at Scottish Borders Council took the decision to take the signs down until they come up with a firm policy for private sponsorship at schools in the region.
The erection of the boards in the past month had split opinions among staff and parents at the school.
One Galashiels Academy parent said: “On one hand it could be seen as an enterprising move by the school to raise much needed funds to help with the education of the pupils and improve the appearance of the school.
“But others felt it was a bit tacky and something a properly-funded school should not have to resort to.”
The school’s main entrance sign in the driveway featured the logo of Ostle’s Tyres with the phrase “A Local Company Supporting Local Education” and the message “Please Drive Carefully”.
The council’s Head of School Services Yvonne McCracken said: “We fully support the involvement of the community in the life of our schools.
“There are a number of excellent examples across the Borders where schools and the community, including local employers, have worked together to greatly enhance the opportunities for young people.
“However, in this case the process of agreeing sponsorship needed further consideration.
“We are grateful to Mr Ostle in agreeing to the removal of the signage and we are having further discussions about how his company can support the school in other ways.”
SBC’s executive member for education, Sandy Aitchison, said: “Negotiations are continuing and there is a need for some clarification whether we can have advertising within schools.
“There are legal issues which need to be addressed.
“We are grateful to Ostle’s Tyres for their involvement in the project and we will hopefully find an amicable solution to the problem in the coming weeks.”