Co-op shutting up shop
The Co-op is in talks to sell two thirds of its loss-making department stores to Anglia Regional Co-operative Society as it prepares to exit the business.
The food to funerals business intends to dispose of its 36-strong regional department store division within two years. It will close the 10 worst performing stores in February with outlets in Gillingham, Kent and Hatfield, Hertfordshire among those earmarked for closure, resulting in the loss of nearly 150 jobs.
It hopes to sell the remaining 26 stores, which employ nearly 900 full and part-time staff, as going concerns.
Co-op deputy chief executive, Paul Hewitt, said the decision had been taken “with much regret” after a strategic review. The department store division has a history of underperformance, making a loss of more than £4m last year. “The review concluded that a complete exit from the sector, disposal of the stores and the re-investment of the proceeds into our core businesses was the only commercial option,” said Hewitt.
The Co-op is currently negotiating with Anglia over a parcel of stores with a decision expected later this month. Any stores that have not been disposed of by February 2007 will close. It is also selling its television rental arm. The Coop turned more than £4bn in the six months to 23 July. As well as department stores, it operates 1,800 grocery stores, including Alldays, the convenience store business, and 600 funeral parlours.