I first noticed there was a problem with Southern Co-op when, in early March, I went into one of their stores, bought some goods and asked for the small 20p bag to carry them home. Staff told me they no longer supplied them. I thought this was odd, as convenience shopping was a vital part of the operation and the bag helped with that.
Then on my way home, the penny dropped: if you are cutting costs at the sharp end, there is a problem.
This was confirmed in early April when Southern gave notice of two special meetings to confirm the board’s wish to merge with the Co-op Group
I assumed the board had contacted other independent societies to explore options. I was surprised to find this was not the case. When I asked why they did not, I was told by Southern management that they considered that OurCoop, our nearest neighbour, did not have the financial resources to help.
It later transpired Southern had not contacted OurCoop to confirm this.
What is even more curious is that the merging with Co-op Group will mean heavy involvement from the CMA, lasting up to a year. Linking up with OurCoop would mean no CMA attention, because our operations do not overlap.
The haste by which these meetings have been called has raised some questions. One of which is the requirement of the 2014 Co-operative Act for societies wishing to “transfer engagements” to supply their members with adequate information enabling them to make a decision. This has not happened.
So it is not surprising some members of Southern Co-op have mounted a campaign to encourage fellow members to reject the board’s recommendation.
Why fly the flag for Southern Co-op? Because this co-op stretches across the south of England, visible proof that the theory of co-operation works. People coming together to own this business, serving their local community and putting resources back into that community.
Linking with OurCoop would enable Southern to continue. A merger with the Co-op Group would mean all this would be lost.
Tom Blair is a former director of Southern Co-op
No comments yet