In a letter to members, bosses said the business ‘has made losses for the past three years’
Southern Co-op this week warned it faces collapse if a merger with Co-op Group does not go ahead.
The Co-op Group is planning to take over Southern Co-op in a deal that would include 300 food, funeral and Starbucks coffee branches. But the proposals need to be approved by members to go ahead.
In a letter to members ahead of the upcoming 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.
Southern Co-op members will be given a vote on the proposals, which would go ahead in the final quarter of 2026 if approved.
Southern Co-op has roughly 300,000 members while Co-op Group has seven million. The firms have not disclosed the price of the potential transaction.
Co-op Group operates over 2,300 food stores, 800 funeral homes, a wholesale business, legal services and insurance business
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.”
