Southern Co-Op has warned that it could fall into administration, putting 300 stores across southern England at risk of closure. The regional retailer, which operates supermarkets, funeral homes, and coffee shops, has suffered three consecutive years of financial losses.
In a letter to members, chair Janet Paraskeva and chief executive Ben Stimson said the proposed merger with the national Co-Op Group is the company's best chance of survival. They stated that without the merger, the business would 'most likely' face administration, putting jobs and stores at risk.
The company has relied on support from banks and suppliers to continue operating, but that support cannot be increased. Executives revealed expected operating losses exceeding £20 million in the upcoming financial year, and cost-cutting measures such as a recruitment freeze have not generated sufficient savings.
Southern Co-Op has 13 stores in and around Bristol that could close. The announcement follows a 'malicious cyberattack' on the Co-Op Group last year, which has also affected the regional retailer.
