The Co-operative Group is taking legal action against ICL to recover "several million pounds" relating to a dispute over the installation of a Globalstore IT package. The dispute dates back to the merger of CWS and CRS in April 2000. Nick Eyre, secretary of the Co-operative Group, said at that time it was clear CRS stores would need a till and back office system compatible with the one used by CWS. The society commissioned ICL to upgrade the IT in use in CRS stores by installing the Globalstore package with the capability to accept Dividend loyalty cards. "Over an 11-month period ICL failed to deliver the Dividend functionality or even a successful pilot," claimed Eyre. "In late January this year ICL was asked to commit to financial penalties should it default. It refused with the result that the society had little option other than to terminate its arrangements." As a result, supplier PCMS, already working with CWS, was commissioned to provide the required IT solution. Eyre said the society's claim related to costs as well as the loss of profit linked to the deferral of the rollout of the Dividend card. An ICL spokesman confirmed a writ had been issued but could not comment. {{NEWS }}

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