'Fear and alienation': Senior Co-op staff complain of 'toxic' culture at the top
Senior managers at the Co-op have raised alarming allegations of a "toxic culture" at the executive level, claiming that an environment of "fear and alienation" has taken hold of the 180-year-old member-owned group.
The controversy centers on a letter sent to the Co-op board and reported by the BBC on 11 February 2026. Senior staff allege that they are "scared" to raise concerns about the business's direction in front of leadership, including Chief Executive Shirine Khoury-Haq.
⚠️ Key Allegations and "Parsnips for Steak"
Whistleblowers suggest that a culture that discourages dissent led to a series of disastrous operational choices following a major cyberattack in April 2025.
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Operational Chaos: The 2025 cyberattack cost the group an estimated £206 million in lost sales. Staff claim the recovery was mishandled, with orders given to fill empty shelves with "whatever was available." This reportedly resulted in absurd situations, such as parsnips being stocked in the place of steaks, which caused food waste to skyrocket.
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The GCL Restructure: Despite internal warnings, the Co-op pushed through a merger of its retail, wholesale, and buying teams into a new unit called Group Commercial and Logistics (GCL). Senior managers say this has caused mass confusion among suppliers and further damaged performance.
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"Looking at Shoes": One manager told the BBC that anyone who speaks up has their "card marked," leading senior leaders to stay silent and "look at their shoes" during meetings.
📉 Financial Performance and Market Decline
The internal revolt comes as the Co-op struggles to keep pace in the highly competitive grocery market.
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Falling Sales: Recent data shows the Co-op has recorded declining monthly sales since July 2025.
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Market Share: Industry benchmarks from January 2026 indicate that while discounters like Aldi and Lidl reached record highs, the Co-op's market share has continued to slide toward historic lows.
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Executive Exodus: "Tens of colleagues" have reportedly left the company recently. Notable departures include:
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Jerome Saint-Marc (Managing Director, Food)
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Sinead Bell (Chief Commercial Officer)
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Adele Balmforth (Propositions Director)
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Rebecca Oliver-Mooney (Commercial Director, who resigned this week)
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🏛️ The Co-op’s Response
The Co-operative Group has strongly rejected the claims of a toxic environment.
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Defense of Culture: A spokesperson stated that the group does not recognize the critical remarks and believes they do not represent the views of the broader leadership team.
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Decision Making: The company maintains that as a co-operative, it listens to various views, but "not everybody will always agree with the final decisions and actions taken."
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Financial Position: The Co-op insists it remains in a "solid financial position" with significantly lower debt levels than five years ago and healthy cash reserves.
The Usdaw union, which represents shop floor and logistics workers, has also acknowledged the concerns, stating that its representatives continue to raise similar issues regarding business decisions with senior management.
