Senior Co-op staff complain of 'toxic' culture at the top

Senior executives at the Co-op, the longstanding member-owned food and services group, have voiced serious concerns regarding what they describe as a “toxic culture” permeating the organization’s leadership. Despite the Co-op’s reputation for upholding strong ethical principles across its 180 years of operation, some senior staff members expressed feelings of “fear and alienation,” fearing repercussions if they speak out against the company’s strategic direction, which is overseen by chief executive Shirine Khoury-Haq.

A letter addressed to the Co-op’s board, reviewed by the BBC, highlights these issues, reporting a leadership atmosphere where challenging decisions is met with resistance or hostility. Sources involved indicate that this atmosphere has led to a decline in morale, abrupt departures of key personnel, and operational missteps, including a notable drop in profits and a worrying increase in food waste. These internal critiques, however, have been publicly disputed by the Co-op’s legal representatives, who say the criticisms do not reflect the views of the majority of the leadership team or employees.

The letter also reflects on the company’s response to a severe cyber-attack that halted trading for three weeks and resulted in an estimated £206 million in lost revenue. The group’s rushed efforts to restock empty shelves with whatever products were available — even if unsuitable — reportedly contributed to decreased sales and increased waste. One insider described the situation bluntly: “We were sending parsnips, which we could get, to fill the shelf space of steak, which we couldn’t.” At the same time, the Co-op went ahead with a major reorganization, merging retail, wholesale, and third-party buying teams into a single division called Group Commercial and Logistics (GCL), despite strong warnings from experienced staff about the risks of confusion and disruption.

Following these changes, the firm has seen a steady decline in monthly sales since mid-2025, placing it among the weakest performers in the grocery sector and marking its market share near historic lows. Meanwhile, the exodus of senior figures — including managing director Jerome Saint-Marc, chief commercial officer Sinead Bell, and propositions director Adele Balmforth — has fueled further concerns over leadership decisions described as poorly communicated and made against internal advice. Even so, Co-op officials maintain that the business is financially sound with a strong cash position. Critics within the company, however, challenge this optimism, insisting that morale is at a nadir and accusing top management of dismissing or downplaying serious internal issues

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