Southern Co-op members back merger with Co-op Group

Southern Co-op members have voted in favour of the proposed merger with Co-op Group.

At a Special General Meeting (SGM) held earlier this week, members voted 12,969 in favour of the merger, with 292 voting against. There were 133 abstained votes.

The proposed merger, announced last month, would see 300,000 Southern Co-op members joining the seven million Co-op Group members as members of an enlarged Co-op Group.

According to both parties, it would “create a co-operative society with greater scale, resilience and impact for members, customers, colleagues and communities across the UK”.

CEO Ben Stimson and Chair Janet Paraskeva had previously warned that if the merger does not take place, the future of Southern Co-op was at risk.

In a letter to members in April, they said: “Southern Co-op has made losses for the past three years. Over the last year, trading has become more difficult, and we have relied on ongoing support from our banks and suppliers to continue operating. That support cannot now be increased within the time available. To continue trading without a merger, we would need a significant level of financial support and we have not received any offers of funding at that level.

“If the merger does not go ahead, the most likely outcome is that Southern Co-op will enter insolvency through administration. This would put jobs at risk, lead to the loss of stores and negatively impact our suppliers.”

Following the vote on 6 May, a second member vote will take place at another SGM on 21 May.

A spokesperson for Southern Coop said: “This is the first step in the proposal to join forces with The Co-op Group and create a co-operative society with greater scale, resilience and impact for members, customers, colleagues and communities across the UK.

“Members will now be asked to vote at a second Special General Meeting on 21st May on a resolution to confirm the transfer, as required under the relevant legislation.

“While the outcome of the first vote is encouraging, the second resolution vote is equally critical and we welcome our members’ continued support and engagement.”