A HOSPICE has been forced to closed three retail branches including their shop in Chipping Norton.

Dwindling donations have forced Helen & Douglas House to 'grasp the nettle' by making at least 12 employees redundant.

Its chief executive officer Clare Periton said she hoped the 'tough' decisions would help to boost sustainability of the hospice, which was the world's first for children and young people.

The shop is based in Market Place.

She said: "We are future-proofing the charity. We are not in crisis: we still have at least £5m in reserves. But if we don't look at this now, we will hit the buffers. We had to grasp the nettle.

"When I became CEO [in 2015] I inherited a plush pot of reserves, a grant from the Department of Health to expand services and several large legacies (donations left in wills). It was a gift.

"Now, the money isn't coming in like it used to and we need to cut our cloth: if we carry on spending like this, we are going to run out of money."

According to Helen & Douglas House's most recent accounts, it made a loss of £1.65m in the financial year 2015-16.

The most recent accounts also show the charity received £1.7m less in donations and legacies in 2015-16, compared to the average sum received in the previous five years and £3m on 2014-15 when there was a high number of legacy cash - that left in wills.

Ms Periton suggested the decline was a combination of tighter purse strings, supporters 'assuming the charity is rich' because it is well-known, and competition from other charities.

She added: "We were the first [children's hospice] and used to have a fundraising footprint of the whole UK. Now there are 45 children's hospices in the UK."

She said many charities face those same struggle, and largely rely on legacies.

But Ms Periton: "We cannot rely on those. We need sustainable income.

"The most important thing is the children's care. In order to do that with excellence, we have to make sure money comes in.

"I'm absolutely aware that [job loss] is life-changing, but we did it as best as we possibly could."

She said she was grateful to the 1,000-strong team of 'integral' volunteers, and appealed to residents to help ensure the hospice still exists to support poorly children in the future.

The Chipping Norton store will close at the end of September.

Healthcare regulator the Care Quality Commission praised the hospice in a post-inspection report released at the end of July, for making 'significant improvements' since safety concerns were raised earlier this year.

To donate to the hospice, visit helenanddouglas.org.uk or call 01865 794749.