Shirine Khoury-Haq is resigning as the chief executive of the Co-op, stepping down just weeks after damaging allegations of a "toxic culture" at the highest levels of the organization surfaced.
She will officially leave her post on March 29. Kate Allum, currently serving as a member-nominated director, will step in as interim CEO while the 180-year-old member-owned retailer navigates a highly turbulent transition.
The leadership shake-up coincides with the revelation of a staggering £126 million annual loss for the group. Much of this financial turmoil stems from a severe cyber-attack in April 2025. The breach forced the Co-op to deliberately shut down parts of its IT infrastructure to block hackers, ultimately costing an estimated £285 million in lost sales and resulting in the theft of personal data from all 6.5 million members.
Beyond the financial and digital fallout, Khoury-Haq's departure follows a damning media exposé regarding the company's internal working environment. A leaked letter sent to the board recently highlighted profound feelings of "fear and alienation" among high-ranking staff, who reportedly felt terrified to question the leadership's strategic decisions.
Insiders described a stifling workplace where challenging the status quo led to plummeting morale, sudden staff departures, increased food waste, and declining profits.
"You learn to look at your shoes. Nobody can speak their mind in this business - anyone who does has their card marked," one senior manager previously disclosed.
At the time, the Co-op’s legal representatives dismissed the claims, stating they did not reflect the broader sentiment of the leadership team. However, the initial reports prompted a wave of additional employees to come forward with similar complaints about the toxic environment at the top.
In her parting remarks, Khoury-Haq—who has been with the company for seven years and served as CEO since 2022—framed her exit around the company's long-term recovery plans.
"Following last year's cyber attack, the organisation is now ready to deliver on an ambitious strategy of stabilisation and transformation," Khoury-Haq said. "This extends beyond the timeframe I had planned for my CEO tenure, and now is the right moment to hand over to leadership that can commit to seeing the strategy through."
Co-op Chair Debbie White expressed gratitude for Khoury-Haq's dedication "during a challenging few years" and thanked her for her significant contributions to the broader co-operative movement.