Reuters - Video

EDITION: U.S. | U.K. | IN

9/11

Co-op crisis deepens with record losses

Thursday, Apr 17, 2014 - 02:05

Apr.17 - Britain's Co-operative Group has announced losses of 2.5 billion pounds in what the country's biggest mutual describes as a disaster. As Ciara Sutton reports 2013 was the worst 12 months in the Co-op's 150-year history.

▲ Hide Transcript

View Transcript

The most disastrous 12 months in its 150 year history - Britain's Co-operative Group's response to its 2013 results. It made a loss of 2.5 billion pounds after being hit by a 1.9 billion pound funding gap at its bank. That followed a drugs scandal involving a former chairman - Paul Flowers was charged this week with drug possession. And then came an exodus of top executives, including the CEO who only lasted 10 months. Interim Chief Executive Richard Pennycook. (SOUNDBITE) (English) COOP INTERIM CHIEF EXECUTIVE RICHARD PENNYCOOK, SAYING: "We need to recover from that. We need to make the changes necessary to once again become a proud organisation. But I don't want to underestimate that we have some hard yards ahead." The losses reflect the cost of recapitalising the bank last year and a decline in the value of stores it acquired five years ago. It's now selling off its farm business and - possibly its pharmacies - to help raise cash. Hargreaves Lansdown's Richard Hunter. (SOUNDBITE) (English) HEAD OF EQUITIES AT HARGREAVES LANSDOWN, RICHARD HUNTER, SAYING: "When you hear things like this it sometimes flies in the face of an economy which is obviously recovering. We've got the cost of living gap which is now being closed as of yesterday, unemployment looking good. Bank of England now needing to decide where we go next. And this really should be a time for bluer companies to be starting to reap the rewards of previous cost cutting and streamlining." Co-op is still considering whether to inject more cash into its bank. It needs an extra 400 million pounds to cover the cost of past misconduct. The group saw its stake in the bank fall to 30 percent last year following a capital raising, with bondholders including U.S. hedge funds taking control. So far Co-op customers are remaining loyal, with no clear evidence of savers switching to other banks. But the deepening crisis could impact consumer confidence at a critical time. One independent director - who's standing down in May - has warned the Co-op must reform or die.

Co-op crisis deepens with record losses

Thursday, Apr 17, 2014 - 02:05

Top News »

Money »

Finding meaning in the S&P 500 2000 mark Finding meaning in the S&P 500 2000 mark

Mon, Aug 25, 2014 - (2:35)

S&P falls back from record high S&P falls back from record high

Fri, Aug 22, 2014 - (1:35)

S&P 500 closes at new high S&P 500 closes at new high

Thu, Aug 21, 2014 - (1:24)

S&P 500 just shy of record S&P 500 just shy of record

Wed, Aug 20, 2014 - (2:23)

Apple hits $100 a share Apple hits $100 a share

Tue, Aug 19, 2014 - (2:06)

Nasdaq closes at 14-year high Nasdaq closes at 14-year high

Mon, Aug 18, 2014 - (2:23)

Putin puts Wall Street in buying mood Putin puts Wall Street in buying mood

Thu, Aug 14, 2014 - (2:10)

We've become a promotional culture-RetailMeNot's Bodge We've become a promotional...

Thu, Aug 14, 2014 - (4:39)

Dow back to positive territory for year Dow back to positive territory for year

Wed, Aug 13, 2014 - (2:18)

The Exchange »

The Exchange: Hot commodity The Exchange: Hot commodity

Wed, Jul 16, 2014 - (9:25)

The Exchange: Constitutional crusade The Exchange: Constitutional crusade

Wed, Jun 25, 2014 - (11:35)

The Exchange: The value of money The Exchange: The value of money

Mon, Jun 02, 2014 - (9:53)

The Exchange: China’s Second Continent The Exchange: China’s Second Continent

Tue, May 27, 2014 - (9:35)

The Exchange: A master of business arts The Exchange: A master of business arts

Thu, May 08, 2014 - (8:24)

The Exchange: America's bankrupt cities The Exchange: America's bankrupt cities

Mon, May 05, 2014 - (8:52)

The Exchange: Let the rocking commence The Exchange: Let the rocking commence

Tue, Apr 08, 2014 - (8:13)

The Exchange: The Moneyball fallacies The Exchange: The Moneyball fallacies

Mon, Mar 24, 2014 - (9:54)

Is doing good a good business? Is doing good a good business?

Mon, Mar 17, 2014 - (7:38)

Reuters Investigates »

Re-homing victim: "I could have been dead" Re-homing victim: "I could have been dead"

Wed, Feb 19, 2014 - (8:24)

Cops and loggers in the Amazon rainforest Cops and loggers in the Amazon rainforest

Fri, Jan 10, 2014 - (4:01)

"Passed around like a dog" "Passed around like a dog"

Thu, Aug 29, 2013 - (6:32)

Adopted, then abandoned online Adopted, then abandoned online

Thu, Aug 29, 2013 - (13:21)

How the DEA keeps its secrets secret How the DEA keeps its secrets secret

Mon, Aug 05, 2013 - (1:36)

How education lost its role as the great equalizer - Reuters Investigates How education lost its role as the great...

Mon, Dec 17, 2012 - (7:52)

Jihad Jane: From abused child to American jihadist - Reuters Investigates Jihad Jane: From abused child to American...

Sat, Dec 08, 2012 - (10:01)

Jihad Jane: The order to kill - Reuters Investigates Jihad Jane: The order to kill - Reuters...

Sun, Dec 09, 2012 - (10:39)

Moving Pictures »

Mending dolls, teddies and hearts Mending dolls, teddies and hearts

Fri, Aug 22, 2014 - (3:12)

"Old timers" sail the Chesapeake Bay "Old timers" sail the Chesapeake Bay

Mon, Aug 11, 2014 - (2:27)

Burned memories Burned memories

Fri, Aug 08, 2014 - (3:02)

Images of July Images of July

Thu, Jul 31, 2014 - (1:20)

World Cup: passion on the pitch World Cup: passion on the pitch

Fri, Jul 11, 2014 - (1:00)

A refugee in America gives back A refugee in America gives back

Wed, Jul 02, 2014 - (3:25)

A long search for refuge A long search for refuge

Fri, Jun 20, 2014 - (3:04)

World Cup: Around the globe in 50 goals World Cup: Around the globe in 50 goals

Fri, Jun 06, 2014 - (1:08)

VIVID – Sydney’s spectacle of light VIVID – Sydney’s spectacle of light

Fri, May 30, 2014 - (1:37)