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Shirine Khoury-Haq, who has served as chief executive of the Co-op since 2022, is set to step down from her role on 29 March. Her resignation follows recent reports highlighting concerns about a “toxic culture” within the leadership of the long-established food and services group. The Co-op has faced significant challenges over the past year, including an estimated £126 million annual loss largely attributed to a major cyber-attack in 2025, which severely impacted its sales.
The BBC had previously reported on internal complaints from senior staff who described an atmosphere of “fear and alienation” that inhibited open communication. A letter addressed to the Co-op board expressed that even high-ranking employees felt intimidated and reluctant to voice concerns about the company’s direction. One senior manager shared: “You learn to look at your shoes. Nobody can speak their mind in this business – anyone who does has their card marked.” Despite these criticisms, at the time, the Co-op’s legal representatives stated that these views did not reflect those of the wider leadership or workforce.
Over the past year, the Co-op has experienced a turbulent period marked by leadership challenges and operational setbacks. The cyber-attack forced the group to shut down parts of its IT infrastructure to prevent unauthorized access, an action that ultimately cost the business approximately £285 million in sales. These difficulties, coupled with a perceived culture that discouraged constructive questioning, have reportedly contributed to falling morale, significant staff turnover, a sharp decline in profits, and increased food waste.
In her statement announcing her departure, Khoury-Haq expressed that it had been “an honour to lead the organisation” and indicated that the Co-op is now prepared to embark on a phase of stabilisation and transformation, which extends beyond the timeframe she had originally envisioned for her tenure. Kate Allum, a member-nominated director on the Co-op board, will take over as interim CEO. Co-op chair Debbie White thanked Khoury-Haq for her dedication and leadership throughout a particularly challenging period, wishing her well in her future endeavours
Read the full article from The BBC here: Read More
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