Rescue plan would allow Co-operative Bank to meet its responsibilities

Euan SutherlandEuan Sutherland, the group chief executive, has said that the new rescue plan for the bank will allow it to meet its obligations.

He said that the plan will allow the bank to raise necessary capital and help in protecting its ethics and values for the long term. He pointed out that the plan would remain only a plan if it is not backed by thousands of investors who hold preference shares and bonds in the bank. He said that the support from the investors is the key factor in ensuring the survival of the group.

Chief executive of the embattled mutual, Euan Sutherland said that food retail business was the core of the group. The redevelopment will include revamping stores and training staff on customer service.

Richard Pennycook, the group's finance director indicated that the food unit will get new investment every year under the investment programme planned for the next few years.

"We are disposing of more stores than we are putting down, so the market share is going to be in a negative position for a period of time. But we are very much focusing on being Britain's best convenience food retailer. We're focusing on product innovation, we're putting in new ranges, and

new takeaway ranges, which are strongly performing with like-for-likes."

Mr Pennycook also said that the group will have a London office located next to the bank. Its recently opened Manchester head office will remain its headquarters. Mr Sutherland, who took control of the mutual from May 1, said that the group requires improvements in productivity, efficiency, and selling some of its assets.