Thanks for your help cancerinform, however I've found a really simple way of doing it:

Code:
function clearSlot(evt:MouseEvent):void {
	var spacer:int = 44.1;// set this to the height of each item
	evt.target.parent.parent.removeChild(evt.target.parent);
	for (var i:int = 0; i < checkoutSlotsArray.length; i++) {
		if (checkoutSlotsArray[i].name == evt.target.parent.name) {
			checkoutSlotsArray.splice(i, 1);
		}
	}
	for (var j:int = 0; j < checkoutSlotsArray.length; j++) {
		checkoutSlotsArray[j].y = j*spacer;
	}
}
It was the "if (checkoutSlotsArray[i].name == evt.target.parent.name)" that I was really looking for. Thanks again!