The Co-operative beefs up management team

5 June 2013

Under-fire banking and retail giant the Co-operative Group has recruited the former finance director of Morrisons and the chairman of Britain's nationalised banks in a bid to beef up its management team.

The customer-owned group said Morrisons former FD Richard Pennycook will become group finance director, while Richard Pym, chairman of UK Asset Resolution (UKAR), will chair the Co-operative Banking Group, which has been under pressure over its capital strength.

The Co-op Bank was recently forced to reassure customers it does not need a Government bailout after being downgraded to junk by ratings agency Moody's amid fears over its capital reserves.

Last month it stopped lending to new corporate customers as it seeks to repair a major hole in its finances.

Mr Pennycook was finance director of Bradford-based supermarket chain Morrisons for eight years and joins next month, initially on an interim basis.

Mr Pym, the former boss of Alliance & Leicester, joins immediately and will continue as chairman of UKAR, which holds almost £70 billion of loans made by failed lenders Bradford & Bingley and Northern Rock.

The Co-op has been under intense scrutiny after pulling out of a deal to buy more than 600 branches from Lloyds Banking Group.

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