max temp: 13°C

min temp: 10°C

ESTD 1874 Search

Retail/ Banking: Co-operative Group reports £2.5bn loss after ‘disastrous year’

09:22 17 April 2014

The Co-operative Group has reported an annual loss of £2.5bn.

The Co-operative Group has reported an annual loss of £2.5bn.

The Co-operative Group today confirmed an annual loss of £2.5billion amid the worst crisis in its history following the near-collapse of its banking arm.


Interim chief executive Richard Pennycook said: “2013 was a disastrous year for the Co-operative Group, the worst in our 150-year history.

“Today’s results demonstrate that but they also highlight fundamental failings in management and governance at the group over many years.

“These results should serve as a wake-up call to anyone who doubts just how serious the challenges we face are.”

The bulk of the losses relate to the crisis that engulfed the Co-op’s banking arm when a £1.5bn hole was discovered in its finances, following its ill-fated purchase of the Britannia building society and attempts to buy more than 600 Lloyds branches.

A rescue deal means the majority of the bank is now owned by bondholders though the Co-op group remains the largest single shareholder with 30%.

But this stake may be further diluted after it said in today’s statement that it had still not decided whether to take part in a £400million rights issue after the lender said it needed to find more cash than previously thought.

The group said the cash call was an “opportunity, not an obligation” and that it would “consider the full details of the issue in due course”.

It will add to speculation about the possibility of the size of the group’s holding in the bank falling to such a low level that it may not be able to continue operating under the Co-operative brand.

Today’s figures showed the Co-op’s vast debt pile, built up during an acquisition spree which included the Somerfield supermarket chain, stood at £1.4bn.

This was down from £1.7bn in 2012, but comes as lenders are reported to be increasingly troubled by the run of boardroom disputes hampering plans to shake up the group’s corporate structure.

Bitter resistance to the planned changes saw chief executive Euan Sutherland step down last month while former City minister Lord Myners, architect of the reforms, will also leave after putting them to a members’ vote in May.

Group chair Ursula Lidbetter used today’s results announcement to stress the urgent need for change.



  • only the leadership of the COOP was made responsible for adhering to its mutual principles, but they are not, they are taking the mickey and the money of the COOP whilst the steering group is not holding these hot shots to account. There is nothing wrong with their ethical policy.

    Report this comment

    ingo wagenknecht

    Thursday, April 17, 2014

  • Paul Flowers, Lord Myners, useless puppets put into `jobs` for a reason.

    Report this comment

    John Bridge

    Thursday, April 17, 2014

  • This does not surprise me after seeing their prices, the miserable faces behind the tills and the rudeness of the staff talking to each other whilst serving you, especially in the Bradwell one.

    Report this comment


    Thursday, April 17, 2014

The views expressed in the above comments do not necessarily reflect the views of this site

Alistair Ponder, Leanne Castle and Alex Till of Menta receive their trophy from Declan Curry at the National Enterprise Network annual awards.

Bury St Edmunds-based enterprise agency Menta has won an Enterprise Support Organisation of the Year accolade at the National Enterprise Network’s annual awards.

An artist's impression of the new Hampton by Hilton hotel to be built and Stansted Airport,alongside the existing Enterprise House office complex, right.

A new £45million hotel is to be built close to the main terminal at Stansted Airport, bringing the number of hotels on the airport site to five and creating around 60 new jobs.

Frank Brumby, eastern region chairman of R3.

“Zombie” businesses are on the march in the East of England, according to a survey by insolvency trade body R3.

Royal Bank of Scotland has passed the latest Bank of England stress test, but missed fulfilling one of the capital guidance criteria.
Photo: David Cheskin/PA Wire

All seven of the UK’s largest lenders have passed the Bank of England’s latest “stress test”.

Max Chmyshuk, founder and managing partner at Fleximize.

More than £25million-worth of credit applications by small and medium-sized enterprises (SMEs) in eastern England are being rejected by banks every month, according to alternative lender Fleximize, which is based Ipswich.

Most read

Most commented

Topic pages

Local business directory

Our trusted business finder

Property search

e.g. Oxford or NW3
Powered by Zoopla

Digital Edition

Read the East Anglian Daily Times e-edition today E-edition

Great British Life

Great British Life
MyDate24 MyPhotos24