The Co-op Group has announced the departure of its chief executive, Shirine Khoury-Haq, effective 29 March, as the mutual reported a £125m underlying loss for the year. Khoury-Haq denied her exit was linked to recent allegations of a 'toxic' culture at the retailer and funeral services group, calling it a 'personal decision'.
Kate Allum, a board member and former boss of First Milk, will serve as interim CEO while a permanent successor is sought. The leadership change comes as the Co-op, which operates over 2,000 convenience stores and 800 funeral parlours, revealed a £107m profit hit from a cyber-attack last April that disrupted operations and knocked £285m off sales.
Sales fell 2.3% to £11bn in the year to 3 January, with the group citing a 'contracting convenience market' and £150m in cost headwinds from higher employer national insurance, pay, and packaging taxes. The Co-op has launched a £200m cost-cutting plan to stabilise the business and fund transformation.
Khoury-Haq, who led the Co-op for four years, said the organisation was 'ready to deliver on an ambitious strategy' but that it extended beyond her planned tenure. Her departure follows reports in February of a letter from senior managers complaining of a 'fear and alienation' culture, which the Co-op defended at the time.
