Co-op: Myners rules out talks with objectors

“The Co-op Group now confronts profound financial and strategic challenges” said the peer. “It urgently needs governance that is fit for purpose. The consequences of not addressing this do not bear contemplation by those who care about the group or who depend on it, like our 90,000 colleagues.”

It will see the Co-op Group attempt to counter some of the damage caused by the series of crises that have engulfed the business, with figures suggesting customers are remaining loyal to the mutual brand.

Like-for-like sales have shown a modest 1.5pc growth during the turmoil, while underlying profits are said to be healthy.

But the trading performance will be overshadowed by the heavy losses resulting from the £1.3bn Co-operative Bank loss and the writedown of assets bought during the group’s heady and costly expansion period.

Richard Pennycook, chief executive, will make it clear that the financial crisis has reinforced the need for constitutional and governance changes to a mutual model that faces an uncertain future without widespread restructuring and change.

The financial strains and pressures have raised question marks over whether the group will be able to meet a commitment to pay the final instalment of a rescue bill for the Co-operative Bank, one of its business headaches, and retain its 30pc shareholding.

The group has to find £363m to honour undertakings given when debt and hedge funds moved in to take control of the bank after last year’s £1.5bn fundraising effort.

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