11 hours ago
Co-op secures £350m loan from six major banks after cyber attack
Co-op Group has secured a £350million funding agreement with six major banks in a deal the group says indicates 'strong market confidence' in its prospects and resilience.
It comes as Co-op confirmed it had finally overcome the impact of a crippling cyberattack, with its 2,300 food stores now trading as normal.
Co-Op's chief financial officer Rachel Izzard described the funding agreement as a 'powerful endorsement of strength' after the mutual returned to a pre-tax profit for the first time since 2020 last year.
The banks providing Co-op's cash injection are Barclays, HSBC, ING, Lloyds, NatWest and Rabobank.
Co-op's credit rating was upgraded by Standard & Poor's in late 2024, and the Group also successfully renewed and extended its backstop undrawn revolving credit facility by five years.
In April, the group revealed 35 per cent increase in annual operating profit for last year, with member numbers rising 22 per cent to 6.2million.
Nioami Reddington, senior relationship director at NatWest, said: 'Co-op continues to demonstrate strong trading results, a robust balance sheet, growing membership numbers and a resilient operating model.'
Co-op has more than 2,300 food stores, 800 funeral homes and a wholesale business supplying approximately 6,000 additional outlets.
It employs 54,000 staff and generates annual revenues of more than £11billion.
Izzard said: 'This funding arrangement is a powerful endorsement of strength - the renewed financial strength of our Co-op, the strength of our mutual model and the strength of the shared voice of our members.'
Co-op's £10 'thank you' giveaway
Co-op is offering its members £10 off a minimum £40 shop as a 'thank you' gesture following a major cyber attack that disrupted payments and left shelves bare.
The group's stock availability was affected due to the attack in May, and shoppers faced empty shelves because of the continued fallout.
Hackers also stole members' personal data, such as names and contact details.
Co-op was just one of a number of retailers and other firms to have been hit by a raft of cyber attacks striking the sector in recent months.
Marks & Spencer was forced to halt all online orders after a cyber incident in April, which bosses have said was likely to cost the business around £300million, while Harrods was also hit.
