Co-op set to post losses exceeding £2bn

The Co-operative Group is expected to announce pre-tax losses of between £2bn-£2.5bn this week as its financial woes continue.

The mutual's annual results, due for release on Thursday, will see it post by far the biggest loss in its 170-year history, according to the FT. Of most concern is the Co-operative Bank's £1.3bn capital shortfall. The Co-op Group has just a 30% stake in the bank following the latter's December recapitalisation. he loss means the firm is unlikely to find £120m needed to participate in the bank's £400m rights issue, and it could be forced to sell more of its stake, according to the paper. Co-op is also under pressure to buy back its £1.2bn debt to lenders including Barclays, Royal Ba...