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Co-operative Group's £2.5bn loss is worst in its history

The Co-operative Group has reported annual losses of £2.5 billion, the worst in the company's history.

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Co-op boss outlines cause of 'disastrous' 2013 results

The interim chief executive of the Co-operative said the group's losses arose principally from three causes.

Firstly, the continuing losses reported by the Bank as a result of the impairment of corporate loans, conduct issues and failed computer development projects.

Secondly, the write-off of our accumulated 115 year investment in the Bank following its emergency recapitalisation, in which we participated but in the process saw our shareholding fall from 100% to 30%.

And thirdly, a partial write-off of the goodwill created on the 2009 acquisition of the Somerfield food business following a strategic review of that business.

– Richard Pennycook chief executive of the Co-operative group

The final results for The Co-operative Group highlighted heavy losses that reflected:

  • Significant losses at The Co-operative Bank (“the Bank”)
  • Loss on reduction in Group’s shareholding in the Bank
  • Impairment of goodwill which arose on the Somerfield acquisition
  • Reduced sales in Food, impacted by disposal programme designed to focus business on its core convenience store chain
  • Increased central corporate costs

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