A vote held this week saw 97.7% of Southern Co-op members back the plans, which would see 300 food, funeral and Starbucks coffee branches transferred to Co-op Group
Co-op Group is on track to take over hundreds of Southern Co-op food and funeral shops after a proposed merger passed an initial vote.
A vote held this week saw 97.7% of Southern Co-op members back the plans, which would see 300 food, funeral and Starbucks coffee branches transferred to Co-op Group.
Members must vote again on May 21 for the deal to go through. A Southern Co-op spokesman said: “This is the first step in the proposal to join forces with The Co-op Group and create a co-operative society with greater scale, resilience and impact for members, customers, colleagues and communities across the UK.
“While the outcome of the first vote is encouraging, the second resolution vote is equally critical and we welcome our members’ continued support and engagement.”
Southern Co-op had previously warned that the business will collapse if the proposal is not approved by members. In a letter to members prior to the ballots, bosses said “Southern Co-op has made losses for the past three years”.
The leadership team went on to warn that “if the merger does not go ahead, the most likely outcome is that Southern Co-op will enter insolvency through administration” and added that “this would put jobs at risk, lead to the loss of stores and negatively impact our suppliers”.
Southern Co-op was founded in Portsmouth in 1873 and operates mainly across the south of England, incorporating London, and under the Co-op Food and Welcome brands.
Co-op Group operates over 2,300 food stores, 800 funeral homes, a wholesale business, legal services and insurance business. The firms have not disclosed the price of the potential transaction.
Ben Stimson, Southern Co-op’s chief executive, said: “The Co-operative Group shares our values and our commitment to democratic membership, ethical sourcing and fair reward, as well as our dedication to supporting local communities.
“By coming together, we can secure the co-operative future of Southern Co-op as part of a stronger combined Co-op Group, whilst creating an even stronger voice nationally and internationally to advance the co-operative cause.”
Kate Allum, Co-op Group’s interim chief executive, said: “Joining forces across Co-op Group and Southern Co-op will create new opportunities for members to have access to a greater range of benefits across a wider society, with more trading opportunities, and in turn more benefits for them and their communities.”
Janet Paraskeva, Chair of Southern Co-op Board, said: “This proposal has been carefully considered, and we believe it represents the best path forward for Southern Co-op.
“We are now asking our members to consider the proposal and have their say. This is their decision, and we are committed to providing all the information they need to make an informed choice about the future of their co-operative.”
