Owner Rachel Cartmell, who was not arrested, has now lost her business after being forced to put the nursery into liquidation in September, when its licence was suspended by Ofsted.
During the five-month investigation a 37-year-old woman, understood to be a member of staff, and 48 year-old man were arrested and bailed.
But last week, a spokesman for Wiltshire police said their bail had been cancelled, and the investigation concluded with no charges brought.
Police would not confirm who made the allegation but said it was about sexual abuse of more than one child.
The nursery gained a ‘good’ Ofsted rating in May, two months before the allegation was made.
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