A fair trade business that has its roots in the church has admitted to supporters that it is in difficulty and risks closing its doors before the end of the year unless a new way forward can be found.

Traidcraft was established in Newcastle in 1979 with the vision of creating a fairer trade system and fairer prices for the people on the production end of the chain in developing countries.

However, after nearly 40 years, it has announced in an update on its website that it is exploring alternative models to prevent its business arm closing down.

The charity works with farmers, entrepreneurs, and manufacturers in developing countries to sell a range of products to British consumers, from tea and coffee, to clothes and homeware, . Many of their drink and snack products are staples at churches across the country and have even made their way into some supermarkets.

Although it generates £10 million a year in sales, Traidcraft said its recent trading figures had been 'poor' and that the UK's decision to leave the European Union had played into the current situation.

Chief executive Robin Roth said: 'We are the sort of business that pays up front – that's in our nature as an ethical business. So when the pound fell after the Brexit referendum, we took a hit. We also stand by our published prices, so unlike other retailers we stood by our customers, absorbed a lot of the additional cost, and kept price rises to a minimum.'

A 'disappointing' online relaunch failed to revive the trading figures, prompting the Traidcraft board to propose ceasing trade at the end of the year unless a sustainable alternative can be found.

Although the business side is facing closure, the charity arm, Traidcraft Exchange, will continue its work of campaigning for trade justice in the UK.

All 68 of the staff who work for the business division at Traidcraft HQ in Gateshead are facing redundancy.

Traidcraft has now launched a consultation into its future and is inviting supporters to get in touch with their ideas for a new model by emailing lovetraidcraft@traidcraft.co.uk

The charity also appealed to people to continue buying Traidcraft products as it admitted a good autumn season would be needed if it was to have a chance of surviving on a new footing.