Co-op boss quits after 'toxic culture' claims reported by BBC

The boss of the Co-op is stepping down weeks after the BBC reported on claims of a "toxic culture" at the top of the food and services group.

A letter sent to Co-op board members had complained of "fear and alienation" among even senior staff who felt scared to raise concerns about the direction of the business in front of the leadership team, claims the Co-op said it didn't recognise at the time.

Shirine Khoury-Haq's departure comes as the group reported a £126m annual loss, after its sales took a massive hit from a cyber-attack last year.

Khoury-Haq said it had been an honour to lead the organisation and wished it success in the future.

She will step down as chief executive on 29 March. Kate Allum, currently a member-nominated director on the Co-op board, has been appointed interim group CEO.

Khoury-Haq has been with the Co-op for seven years, including four at the helm.

The last year has been a particularly turbulent one for the 180-year-old member-owned group.

In February, the BBC heard from senior managers who said they personally had felt intimidated and afraid to speak up in front of the most senior executives.

One senior manager said: "You learn to look at your shoes. Nobody can speak their mind in this business - anyone who does has their card marked."

Several sources also said they felt a culture that discouraged any challenge had led to a series of poor decisions resulting in sinking morale, abrupt departures, as well as a "sharp drop in profits and a rocketing of food waste".

Responding to the comments at the time, lawyers for the Co-op said they "do not believe that they represent the views of our broader leadership and colleagues".

Following publication of the story, the BBC was contacted by more people claiming to work for the Co-op who said they also thought there was a bad culture at the top.

In April 2025, the Co-op was also one of several retailers to fall victim to a cyber-attack. The group shut down parts of its IT systems in response to hackers attempting to gain access.

In a trading update on Thursday, the group said the cyber-attack and the "protective action" it took in response cost it an estimated £285m in sales.

Khoury-Haq said in a statement: "Following last year's cyber attack, the organisation is now ready to deliver on an ambitious strategy of stabilisation and transformation. This extends beyond the timeframe I had planned for my CEO tenure, and now is the right moment to hand over to leadership that can commit to seeing the strategy through."

Co-op chair Debbie White said: "We thank Shirine for her leadership and for the significant contribution she has made to our Co-op, to our communities and to the co-operative movement during her tenure. The Board is grateful for her commitment and leadership, particularly during a challenging few years, and we wish her every success in the future."