A businesswoman wrongly accused of selling stolen goods is hoping to turn a financial corner by relaunching her shop.

Desperate in her battle to fight off bankruptcy, The Corner Shop owner Lorraine Nathan said she had no choice but to reopen on Monday this week after four months' closure.

She said: "Our lease runs until 2011, that's the only reason we're coming back. We also want to clear our names – we feel we've been victimised."

Last August all eyes were on The Corner Shop when police raided the premises, removed stock and cash and arrested its owners.

"Everyone saw what happened," explained Lorraine, "and people assumed we were guilty because of the goods we sell.

"People were saying they saw us handcuffed and led away, which was not true."

Police arrested Lorraine and her husband Chris on August 4, on suspicion of stolen goods and drugs charges.

They were held in a cell at Reigate Police Station for seven hours. Lorraine, a grandmother of two, said: "It was awful, I have never experienced anything like it in my life."

Three months later the charges were dropped and the money and items were returned. A Surrey Police spokesman confirmed: "A 52-year-old woman arrested on suspicion of handling stolen goods, copyright theft and possession of class B drugs with intent to supply has been released with no further action."

Regarding her husband Chris, the spokesman added: "A 46-year-old man was also arrested on suspicion of handling stolen goods, copyright theft and possession of class B drugs with intent to supply. He was cautioned for possession of class B drugs."

The caution related to a small amount of cannabis, which Mrs Nathan says was for medical use.

After closing the shop in October, Lorraine was nervous about reopening on Monday. She has decided to stock food items under £1 to recoup losses.

She said: "We had to shut, we had no money and we were struggling. We still had to pay our rates and rent – I nearly had a breakdown.

"I think people judge you on what they see. I've heard them say they won't come back after what happened.

"The funny thing is I used to do a lot for the police. When ShopWatch was launched I was always on my radio alerting other businesses of shoplifters – the police even told me I was doing a good job."

"I can't do this any more, when our lease is up we're going.

Lorraine, who has leased the premises for nine years, believes a shoplifter gave police the bogus tip-off which led to the raid.