Co-op secures £350m loan from six major banks after cyber attack

Co-op Group Secures £350 Million Funding Deal Amid Cyberattack Recovery

The Co-op Group has finalized a £350 million funding agreement with six major banks, a move the organization portrays as a ‘strong affirmation’ of its potential and durability. This financial boost coincides with the Co-op’s announcement that it has successfully navigated the aftermath of a severe cyberattack, restoring normal operations across its 2,300 food stores.

• Finance executive hails accord as ‘robust endorsement’
• Co-op rewards clients with £10 ‘thank you’ as operations normalize following breach

Rachel Izzard, the Co-op’s Chief Financial Officer, characterized the funding arrangement as a resounding ‘endorsement of strength’, particularly after the mutual achieved a pre-tax profit last year, marking the first such instance since 2020.

The consortium of banks providing the financial injection includes Barclays, HSBC, ING, Lloyds, NatWest, and Rabobank.

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In late 2024, Standard & Poor’s raised Co-op’s credit rating. Moreover, the Group effectively renewed and extended its backup revolving credit facility for a further five years, underpinning its financial stability.

Earlier in April, the group reported a 35 percent surge in annual operating profit for the preceding year, complemented by a 22 percent rise in membership, reaching 6.2 million.

Nioami Reddington, Senior Relationship Director at NatWest, remarked, ‘Co-op consistently demonstrates impressive trading performance, a solid financial position, increasing membership, and a resilient business strategy.’

With over 2,300 food stores, 800 funeral homes, and a wholesale division supplying approximately 6,000 additional outlets, the Co-op maintains a substantial presence across various sectors.

The organization employs 54,000 individuals and generates annual revenues exceeding £11 billion.

Izzard emphasized, “This funding arrangement powerfully demonstrates our resilience – the reinvigorated financial health of our Co-op, the viability of our mutual structure, and the collective voice of our members.”

Co-op’s Initiative: A £10 ‘Thank You’ to Customers

As a gesture of appreciation following a significant cyberattack that disrupted payment systems and led to supply shortages, the Co-op is offering its members a £10 discount on purchases of £40 or more.

The cyber incident in May impacted the group’s inventory, resulting in empty shelves and inconvenienced shoppers.

Data Breach and Impact

The cybercriminals also accessed members’ private information, including names and contact details, raising concerns about data security.

The Co-op was among several retailers and companies targeted in a series of cyberattacks in recent months, highlighting the growing threat landscape.

Marks & Spencer, for example, had to suspend all online operations after a cyber incident in April, an event that executives estimate could cost the business around £300 million. Harrods also experienced a similar attack.

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