A popular homeless shelter is in danger of closing after the credit crunch left its finances in crisis.

A massive reduction in donations combined with soaring demand for places has left Lorica St Patrick’s shelter in Hove reeling.

It needs to raise £100,000 in the coming weeks if it is to stave off the threat of closure.

Donations are down 43% on this time last year.

The charity has warned that demand for its beds is likely to remain high as the country lurches into recession.

A spokesman for the Hovebased charity said: “In spite of making cuts by reducing service provision earlier this year, the charity still needs to raise £100,000 to keep the night shelter open through the winter months.

“With an ever-increasing demand for services the charity has grave concerns as we enter the coldest months of the year.”

The charity has suffered a marked change in fortunes in the past 16 months.

It was on a high in June 2007 after Tory leader David Cameron visited the night shelter in Cambridge Road to welcome in its new MiPod beds, which cost £5,000 each.

Since then its founder and chairman Father Alan Sharpe has resigned after claims about his relationship with a drug addict.

He has been replaced by Caroline Mayhew, the former High Sheriff of East Sussex.

Sandie Foster, the charity’s income generation manager, urged people to donate to the charity again.

She said: “No one ever really thinks they’re going to end up on the streets. But without a support network of friends and family to turn to, things like redundancy, relationship breakdown, mental health issues or problems with drink or drugs can easily leave someone homeless.

“People could help in a very small way as we are all feeling the effects of the credit crunch.

“If 5% of residents of Brighton and Hove city considered donating £10 each, we will have raised the amount we need this year and be able to plan for next year.

“If the same number considered donating regularly at £5 a month we could start planning for the future and introduce more MiPods so that homelessness is a thing of the past.”

It is hoped that a sponsored sleepout in Hove Park on November 28 will kickstart St Patrick’s finances again.

To enter or for more details call 01273 733151 or visit www.lorica.org.uk.