STAFF at Lydney's Oxfam shop have been told that when the lease expires on their property at the end of the year, it will not be renewed as the shop is simply not making enough money.
As the credit crunch bites local people are turning more to the local charity shops and national charities are suffering, says manager Cheryl Jones.
The shop's target is to make £25,000 profit a year, but they rarely break the £15,000 mark, she says.
Mrs Jones who is the only one of the 23 staff who is paid said: "Since the word started to get out that we might be closing we haven't been getting many clothes brought in to sell.
"I used to get in at seven in the morning to sort the bags of clothes and get them ready for steaming. Now I don't think we have had any clothes for a week or ten days.
"People are losing their jobs and they only have so much to spend, so they choose to spend it in the more local charity shops like Cats Protection and the hospice."
She said that if people do not continue to support them the closure date could be brought forward.
The shop gives people on job schemes experience to help get them back into work and lots of customers have been coming to the shop for many years.
Volunteers Cissy Hopes, Nan Edney and Ann Wayman-Hill are the longest serving volunteers and have supported the shop since it opened 26 years ago.
Mrs Jones continued: "This is not just a shop, it is a social gathering. A lot of our friends have been customers for a very long time."
Donations, particularly of good quality women's clothes and books, will be welcomed.
Meanwhile in Cinderford, the Age Concern shop is expanding into the former Raffles premises to make a double fronted property and office space.
Alan Gore said the development was good news for Cinderford's economy as it meant buildings would not be left unused, and that older local people would profit from the proceeds made by the larger shop.