Was the Co-op’s CEO Driven Out By a Toxic Working Culture?

Shirine Khoury-Haq will be stepping down from her role as Co-op’s CEO after four years at the company’s helm.

Khoury-Haq’s decision comes after a difficult year for the Co-op, marred by a cyber-attack and allegations of a "toxic" culture.

In recent months, reports have surfaced of senior-level employees stating they felt too “afraid” and “intimidated” to speak up in front of other senior executives in the business. 

One senior manager told the BBC: "You learn to look at your shoes. Nobody can speak their mind in this business – anyone who does has their card marked."

However, Khoury-Haq has denied any allegations that her resignation was linked to a toxic culture, as she said: “My decision to leave was very much a personal decision. The reason is I want to go and do something else.”

Co-op is still in the process of finding a permanent replacement for Khoury-Haq, who will depart on 29 March. Until that replacement is found, Co-op Board Member and former boss of dairy group First Milk, Kate Allum, will take the interim position.

Workplace culture discrepancies 

After allegations of hostile work cultures circulated in February 2026, the Co-op defended its senior leaders after complaints were made about a “toxic” environment within the business. According to the BBC, the Co-op’s chair and another board member were sent a letter from senior figures at the Co-op to convey the views of a sizeable group of managers.

The grocery and services chain said it did not believe the criticisms “represent the views of our broader leadership and colleagues”.

The document alleged that some senior employees felt unable to challenge decisions and described an environment marked by “fear and alienation”. At the time, the Co-op rejected the characterisation and said its leadership operated within a healthy and supportive culture.

Co-op chair Debbie White added: “We thank Shirine for her leadership and for the significant contribution she has made to our Co-op, to our communities and to the co-operative movement during her tenure. 

“The Board is grateful for her commitment and leadership, particularly during a challenging few years, and we wish her every success in the future.”

The cyber impact on Co-op

News of Khoury-Haq’s exit came shortly after the company reported an underlying loss of £125m. Co-op operates more than 800 funeral parlours alongside insurance and legal services businesses, and runs over 2,000 convenience stores.

The result marks a sharp reversal from the £45m profit recorded the previous year. The company said the downturn was largely driven by a £107m hit to profits following an IT hack that forced parts of its systems to be taken offline.

The Co-op disclosed that it had been targeted in a cyber incident in April 2025, one of several retailers affected at the time. As a precaution, the organisation disabled parts of its IT network after detecting unauthorised attempts to breach its systems.

Subsequent investigations confirmed that information relating to all 6.5 million members had been taken during the attack.

However, the grocery and services chain giant said that recovering from the cyber attack had caused the business to “lose trading momentum,” and that it was also affected by a “contracting convenience market” as a result of tightening household budgets.

Speaking of her departure from Co-op, Khoury-Haq said in a statement: “Following last year's cyber attack, the organisation is now ready to deliver on an ambitious strategy of stabilisation and transformation. 

“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.”