Southern Co-op has warned that its 300-plus outlets, including 13 in and around Bristol, face potential closure unless a merger with the national Co-op Group proceeds. The regional retailer, which operates supermarkets, funeral homes and coffee shops across southern England, has suffered three consecutive years of financial losses and is on the brink of insolvency.
In a letter to members, chair Janet Paraskeva and chief executive Ben Stimson said the proposed merger represents the company's best chance of survival. They stated that Southern Co-op has relied on support from banks and suppliers to continue trading, but that support cannot be increased within the time available.
If members reject the merger, the business will 'most likely' face administration, putting jobs at risk and leading to store closures. The executives said there is 'no solvent alternative' available that could be delivered in the required timeframe.
The warning follows a 'malicious cyberattack' on the Co-op Group last year, which has also affected the regional society. Southern Co-op expects operating losses exceeding £20 million in the upcoming financial year, and measures such as a recruitment freeze and office space reductions have failed to generate sufficient savings.
