Richard Pennycook steps down as Co-operative Group chief executive
Richard Pennycook, the chief executive of the Co-operative Group who was parachuted in when the company was in the worst phase of its crisis in 2013, has stepped down as chief executive, it said today.
In a statement today the company said Pennycook will be replaced by Steve Murrells, who currently heads up the company's food business.
The Co-op Group was plunged into crisis in 2013, after it emerged its banking arm had a £1.5bn capital hole in its balance sheet as a result of a botched merger with the Britannia Building Society.
That led to the resignation of chairman Paul Flowers, later nicknamed the "Crystal Methodist" after it emerged he had bought crystal meth from a rent boy, and the swift entry, and exit, of chief executive of Euan Sutherland, who was replaced by Pennycook, who joined on an interim basis and stayed on.
Today the Co-op said Pennycook's departure was part of "transition arrangements for the group as it prepares to move from the successful rebuild phase of its turnaround to the renewal phase".
Pennycook, who joined the Co-op on an interim basis having put on hold a planned portfolio career, has signalled that he now wishes to return to that plan.
Nick Crofts, president of the Co-op National Members Council, added: "Our Co-op survived the crisis of 2013 largely down to Richard Pennycook's leadership, and on behalf of our millions of members I thank him for that.
"Steve Murrells is Co-op through and through and a fantastic choice to lead our business into the future. I was delighted to have been part of the appointment process and look forward to working with Steve to strengthen and grow our membership."
In September the Co-op unveiled a 2.2 per cent rise in revenues, although profits fell from £95m to £72m in its first half – at the same time as admitting it had taken a 25 per cent hit to the value of its stake in its banking arm.
In October, the lender's former chief executive was fined £20,000 by the Financial Reporting Council over failure to exercise due skill, care and diligence in managing of the firm.