The Co-operative Group has said that its chief executive, Richard Pennycook will work as chief operating officer after the group finds a new chief executive.

The move is part of a major management shake-up following the resignation of the chief executive, Euan Sutherland recently. Sutherland had been working to garner support for the plans to revive business but announced his decision to leave the company in the previous week describing the business as ungovernable.

Mr Pennycook said, "I am pleased to be announcing these changes to our management team, which mean we are better positioned to tackle the complex issues we face. We are focused on the hard work needed to complete the development of our new strategy. This is the right team to deliver that strategy in the interests of all our stakeholders - customers, colleagues and members."

The bank needs £1.5 billion to fill the gap in its finances and the management is also considering cutting or cancelling income paid to the bond holders of the bank. Mr Pennycook also said that it will delay its full-year figures, which are expected to show that the group recorded a loss of more than £2 billion.