By Isle of Wight Observer
Southern Co‑op, a familiar brand on the Island, where it operates 14 food stores and five funeralcare branches, has warned it is likely to enter administration if members do not approve a proposed merger with the national Co‑op Group. In a message this week to members, the society’s Chairman and CEO said they wanted to be “clear and open” about the seriousness of the situation, stressing that administration would put jobs at risk, lead to store closures, and have a significant impact on suppliers.
The leadership said they understood why members were discussing the merger on-line, but were concerned that “some of what is being shared does not reflect the full picture”. They confirmed that Southern Co‑op has made losses for the past three years and that trading conditions have worsened over the last 12 months. The business has been relying on support from banks and suppliers to continue operating, but that support “cannot now be increased within the time available”.
They added that the society had explored every possible alternative, including seeking major new funding, but “no offers of funding at that level” had been received. There is, they said, “no solvent alternative available” that could be delivered in time or without exposing the business to greater risk.
Calling the situation “not one we ever wanted to be in”, they said their responsibility now is to protect as much as possible for members, colleagues and communities. They are recommending the merger as the option that preserves the most jobs and services.
Members will have the opportunity to vote on the merger plans on May 6 and again on May 21, when it will be announced whether the merger will go ahead.
Mal Butler