Richard Pennycock, the interim chief executive of Co-op, has issued a stark warning about the group’s future following annual losses of £2.5 billion.
The results were “a wake-up call” to the challenges faced by the group, said Pennycock.
The mutual needed to change course after having tried too hard to be “all things to all men,” he added.
Pennycock announced a £100 million cost-cutting initiative along with the disposal of the majority of sites following the takeover of Somerfield.
The poor performance for 2013 was dominated by problems related to the banking division of the group – a £1.5 billion deficit was found in its balance sheet.
“2013 was a disastrous year for the Co-operative Group, the worst in out 150-year history,” said Pennycock.
As well as demonstrating the bad performance, the results also highlighted “fundamental failings in management and governance at the group over many years.”
Debts at the close of last year amounted to £1.4 billion.
© 2014 - European Supermarket Magazine
