Co-op loses £559 million

Co-op loses millions Credit: PA

The Co-operative Group which was founded in Rochdale today plunged to £559 million first-half losses as heavy bad debts in its banking arm wiped out profits from its supermarkets.

The group said there will be "no quick fixes" as it embarks on a four-year turnaround plan, after reporting pre-tax losses of £709.4 million in the Co-operative Bank in the six months to the end of June.

City regulator the Prudential Regulation Authority (PRA) said the scale of the losses did not alter its demand that the Co-op must plug a £1.5 billion hole in its balance sheet.