Co-op Chief Khoury-Haq Resigns After Cyber Attack and Culture Claims

After a tumultuous year marked by a costly cyber-security attack and claims of a toxic workplace culture, the Co-op Group has announced that its Chief Executive Officer, Shirine Khoury-Haq, will be stepping down from her position this weekend.

Khoury-Haq's resignation, effective March 29th, comes on the heels of the Co-op Group reporting a £125 million loss, which the company attributed in part to the impact of the cyber-attack that disrupted its operations and sales. In addition, recent reports have emerged alleging a problematic and dysfunctional corporate culture at the retail and services cooperative.

Stepping in as interim CEO while the Co-op searches for a permanent replacement is Kate Allum, a current board member and former CEO of dairy cooperative First Milk. Allum's experience in leading cooperative organizations will likely prove valuable as the Co-op navigates this transitional period.

The cyber-attack that hit the Co-op in 2022 had a significant financial impact, contributing to the overall £125 million loss reported by the group. The attack disrupted the company's operations and sales, underscoring the growing threat of cybersecurity breaches that businesses of all sizes must contend with.

In addition to the financial challenges, the Co-op has also faced scrutiny over its corporate culture, with claims of a toxic and dysfunctional work environment emerging in recent months. These reports have added to the pressure on the company's leadership and likely contributed to Khoury-Haq's decision to step down.

As the Co-op Group moves forward, the incoming interim CEO, Kate Allum, will be tasked with steadying the ship and addressing the lingering issues around cybersecurity and corporate culture. The search for a permanent CEO will be a critical process, as the next leader will need to navigate the Co-op through this turbulent period and position the organization for long-term success.