Southern Co-op has reported three consecutive years of financial losses. It now stands on the brink of administration. Operating losses may exceed £20 million in the next financial year.

The company operates supermarkets, funeral homes, and coffee branches across southern England. A merger with the national Co-op Group is considered its best option for survival.

Members will vote on the proposed merger on May 6 and May 21. If they reject the merger, Southern Co-op will likely enter insolvency through administration.

“Southern Co-op has made losses for the past three years,” said company leadership. They emphasized that if the merger does not go ahead, insolvency is the most likely outcome.

The company has relied heavily on ongoing support from banks and suppliers to continue operating. Yet, that support cannot now be increased within the time available.

A cyberattack last year added strain to operations. This incident compounded existing financial challenges.

What happens next remains uncertain. The outcome of member votes on the proposed merger could change everything.

If approved, the merger could lead to combined sales of £11.5 billion and a total of 2,500 stores nationwide.

For now, Southern Co-op faces a critical decision point that could determine its future.

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