A shop that was allegedly falsely trading under a children’s charity’s name for 18 years has taken down all signage after the council contacted police.

Second Chance Children’s Charity, based in Titchfield, Hampshire, was informed about the shop in Erith, south-east London, by a group of local residents.

The charity had permitted the opening of the shop in 2005, but this agreement ended in 2006 and the charity received no income from the shop since then.

But the shop continued trading under the charity’s name and was reported to Bexley Council’s trading standards department last month.

Doug Hulme, chief executive of Second Chance Children’s Charity, said the charity had “merely done what the Charity Commission has advised [it] to do”.

He said: “We are told the lady who had continued trading without us had a stroke two years ago and I am led to believe cannot now answer questions as she is too poorly. 

“Someone else in her family who carried the shop on for the past two years died two months ago, so also cannot be questioned, leaving lots of unanswered questions.

“We just don’t have enough information to form firm opinions ourselves and we continue to be guided by advice from the police and the Charity Commission.

“We await further developments and we are told the shop remains closed and all signage has been taken down.”

The regulator confirmed it had received the report.

A spokesperson for the Charity Commission said: “We can confirm that, in line with our guidance, Second Chance Children’s Charity filed a serious incident report relating to concerns of a charity shop trading under its name without its knowledge.”

Bexley Council said it visited the premises following reports received.

A spokesperson for the council said: “Council Officers attended the premises and also spoke to a relative of the former business owner. 

“The premises has since been instructed to remove any signage reflecting the name ‘Second Chance’ and any charity number.

“The council’s trading standards team and Metropolitan Police Service will continue to liaise with relevant bodies as investigations continue.”

A spokesperson for the Metropolitan Police said: “ A report has been made to police about a shop trading as a charity shop in Erith.

“Concerns have been made about the validity of this shop’s links to the charity it reports to raise money for.

“Trading standards is also aware and investigations are ongoing.

“There have been no arrests.”