Eco shop closes due to cash woes

A shop selling environmentally-friendly products in Shropshire is to close because of financial pressures.

Andy Berry of the Shrewsbury Eco Shop said business had been good since it moved to Castle Gates in September, but he was unable get a loan for cash flow.

Mr Berry asked four banks for a £10,000 loan but said he was turned down for "four different reasons".

He claimed banks "just don't want to lend to small firms" during the current economic downturn.

The shop, which sells such items as organic clothes and local produce, will close on Friday.

Mr Berry said business had been good since it moved to a bigger and more visible premises from another town centre site.

'Find excuses'

"Sales have not been affected. I think the green market is very solid and people who buy green, buy green and are more likely to give up on other things to save money," he said.

He said the shop's prices for various cleaning products were similar to those of supermarkets and people economised by getting refills.

"There were varying reasons from banks why they wouldn't give us some funds. They were all very different and none of them really talked about our business.

"It seems more so, having spoken to a broker as well, they are just trying to find excuses not to lend to small businesses."

Mr Berry and his wife Jo began their business in 2004 by selling cloth nappies.

They planned to continue with the internet side of their work, he added.