The chief executive of the Co-op, Shirine Khoury-Haq, has announced her resignation just weeks after the BBC highlighted allegations concerning a "toxic culture" within the organization.
A communication sent to the Co-op’s board included grievances regarding a prevailing atmosphere of "fear and alienation," particularly among senior staff who expressed apprehension about voicing concerns regarding the company’s strategic direction. The Co-op initially stated that it did not recognize these allegations.
Khoury-Haq's resignation follows the group’s announcement of a £126m annual loss, significantly attributed to a cyber-attack that severely impacted sales last year.
In her departure statement, Khoury-Haq expressed it had been an honor to lead the organization and extended her best wishes for its future. Her final day as chief executive will be 29 March. In the interim, Kate Allum, who is currently a member-nominated director on the Co-op board, has been designated as the acting group CEO.
Turbulent year
The past year has been especially tumultuous for the Co-op, a member-owned enterprise with a history spanning 180 years. Reports to the BBC from senior management indicated that many felt intimidated and reluctant to express their views in front of the top executives. One senior manager remarked: "You learn to look at your shoes. Nobody can speak their mind in this business - anyone who does has their card marked."
Multiple sources indicated a culture that discouraged dissent, ultimately leading to poor decision-making, diminished morale, abrupt exits, decreased profits, and increased food waste. In response to these allegations, legal representatives for the Co-op stated that they "do not believe that they represent the views of our broader leadership and colleagues."
Following the initial report, further employees reached out to the BBC, asserting that significant workplace culture issues persisted at the Co-op.
Additionally, in April 2025, the Co-op was among several retailers targeted in a cyber-attack. In response to hackers attempting to breach its systems, the group disabled certain IT components. Ultimately, it confirmed that all 6.5 million of its members had their personal data compromised in this breach.
In a recent trading update, the organization indicated that the cyber-attack and the requisite "protective action" undertaken incurred an estimated loss of £285m in sales.
Khoury-Haq stated: "Following last year's cyber attack, the organization is now ready to deliver on an ambitious strategy of stabilization and transformation. This extends beyond the timeframe I had planned for my CEO tenure, and now is the right moment to hand over to leadership that can commit to seeing the strategy through."
Co-op chair, Debbie White, commented: "We thank Shirine for her leadership and for the significant contribution she has made to our Co-op, to our communities, and to the co-operative movement during her tenure. The Board is grateful for her commitment and leadership, particularly during a challenging few years, and we wish her every success in the future."
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