CASH-STARVED Halton Food Co-op has shut down - because it's run out of money.

This community project had hoped to continue supplying schools, nurseries, residential homes and Halton Haven with fresh fruit and veg but has been forced to quit.

"We just can't carry on," said project manager Graham Crewe, who axed home deliveries to the disabled and housebound last month and took their mobile shop off the road to cut costs.

"We didn't have enough money to pay wages."

His dedicated team was supplying £4,000 worth of fresh fruit every week for salad bars in Halton's 63 schools. They also delivered fresh veg for homemade soup.

Now, he fears it will cost the council much more to use a commercial company.

"We were selling it cheap so kids could eat more," said Graham. "The schools loved us because we supplied it fresh every day. They knew they could ring up and they'd get top quality produce the next morning.

"What the council will be paying extra would keep us going."

He now hopes a Lottery bid, to be announced in September, could save the service.

"Everything seems to be going through OK," said Graham.

Chris Patino, Halton Council's head of hospitality and stadium services, said the council has a main contractor to supply fruit and veg.

He said: "Halton Food Co-op supplied us with produce for school salad bars, about four per cent of the total groceries we buy in.

"We decided to use the co-op to give them a helping hand financially and also by introducing them to the school meals market.

"The quality of the produce is excellent and slightly cheaper and we would still be happy to use them.

"Our main contractor will now supply the fruit and vegetables for the salad bars and we are happy that an excellent service will be provided for our schools."