This gives a clear description of what is happening there:
Microlight Forum (read the post this links to and next one).
This is the site of one of the companies which are continuing operating:
Specialist Flying School.
And finally an event taking place in June at Sandown - which looks like fun:
Spamfield 2010.
Please don't spread the rumour that Sandown is closing. IMHO the more people hear it the less visitors they will get and the more likely closure will become.
OC619