max temp: 16°C

min temp: 15°C


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

Bea the cat is recovering well

A cat has been found collapsed on an Ipswich doorstep 10 days after suffering serious neck injuries caused by its own collar.

Crown Pools in Ipswich, where a man reportedly exposed himself on Saturday.

A man has reportedly twice exposed himself to girls in the changing rooms of an Ipswich swimming pool.

Heart FM DJ Dave Taylor during the charity busking session on the Cornhill in Ipswich where he was accompanied by his producer Nick mellamphy and students from Ipswich High School for Girls.

Heart FM breakfast DJ Dave Taylor took on a charity challenge with a difference this afternoon – learning to busk classic songs with the help of high school students.

Police have cordoned off an alleyway between Blanche Street and Christchurch Street in Ipswich after a man was stabbed.

Police are hunting for three men after a man was stabbed in the chest in Ipswich last night.

Abellio Greater Anglia

Trains running between Essex and Suffolk and the capital face delays, alterations and cancellations due to a defective piece of track at Harold Wood.

Dan Poulter with employees at B&Q

A Suffolk MP has said he will do what he can to try and prevent a B&Q store closing down with the potential loss of around 100 jobs.

Julian King and Ian Lea talk about custom bikes at the Copdock Motorcycle Show.

There was something for all motorcycle enthusiasts at Trinity Park over the weekend as a popular event returned for its 24th year.

Urban caterer chef, Simon Daniels cooking the goumet burger at K Bar and Grill, St Nicholas Street, Ipswich.

We all love a good burger, so we’ve picked out some of our favourites from across Suffolk.

Lord Nelson

You might wonder why the Lord Nelson in Fore Street has a glazed brick elevation to the ground floor when it is clearly a timber framed building of some considerable age, writes John Norman, of the Ipswich Society.

Olly Rofix drove a tractor the length of the country to raise money for the Teenage Cancer Trust 10 years after he was diagnosed with leukaemia

A Suffolk adventurer has returned from his latest expedition – from Lands End to John O’Groats on the back of a 1952 tractor.

Most read

Most commented

Topic pages