AN independent jeans shop has been rescued by fresh investment – days after it closed.

Denim City, which has traded in Eld Lane, Colchester, for 38 years, shut last week.

However, owner Nick Moore says the closure is only temporary, because an investor has stepped in to rescue the business.

The shop will now undergo a revamp before reopening soon.

Mr Moore, who took over Denim City three years, blamed his financial struggles on unsupportive banks.

He said: “We have had trouble raising capital, simply because the banks have been useless.

“We now have a private investor about to come in.

“Within the next week or two we are having a refurbishment, and after that, we are putting in new stock and redeveloping the front of the building to a more modern standard.

“It has been a bit of a trial over the past year or so.

“The banks are completely belligerent. We have been to a number of banks for loans and they are just not willing to help us.”

Mr Moore said problems started soon after he took over the business in 2011 from founder David Blackwell.

He explained: “Our suppliers changed tack when we took over, which caused an issue, and the banks stopped supporting us. But we have pretty much got our finances sorted now.

“Fortunately, our suppliers are being very patient.

“We are resolving the issues and will be up and running as soon as we can.”

Nearby traders agreed it would have been a shame to see the shop, which employs two staff, close.

Jamie Milleare, owner of Darcy’s Traditional Sweet Shoppe said: “My dad is 64 and he used to go there when he was a kid. Unfortunately, people have access to jeans at the chain stores. Eld Lane should be like Brighton’s Lanes. There is something different in every single shop.”

Mr Milleare said he felt it was becoming increasingly difficult for independent businesses to survive in the town centre with the rise of out-oftown shops, particularly those at Stanway.

Jez Dixon, manager of Best Days Vintage, said: “A lot of our customers have come in and asked what’s happened to Denim City.

“It’s always a shame when a shop that is part of the furniture around here closes.”