Southern Co-op is attempting to avoid insolvency

Stuart_W

Southern Co-op, the regional co-operative society that operates 300 or so stores in the South of England, have made losses for the past three years and have now run out of lending capacity to continue to make those losses. Their hastily propsed "merger" with Co-op Group is to prevent insolvency, and they are not hiding the fact. Heart of England society seem to have increased borrowing amid fairly flat sales (so they might be next) according to their last annual report - new one due very soon, all depends if the borrowing for investment has worked. It didn't for southern. The Central/Midcounties merger was two profitable societies merging to cut costs so that one may fair better. They have also continued to pay a dividend to members every year, something Co-op Group abandoned in 2013.