Lord Myners: Co-op is “manifestly dysfunctional” and “stuck in denial”

Lord Myners, the former City minister, has called for radical overhaul of the Co-operative Group, which he says is “manifestly dysfunctional” and “stuck in denial”.

Myners’ review of the 150-year old organisation calls for major reforms to the group’s current board. His recommendations include replacing the existing board with a smaller board made up of board members with business experience.

Myners resigned from his position on the Co-op board in April after his plans for reform were dismissed by supporters of the group’s existing model.

Speaking to the BBC, Myners said: “Radical decisions on governance structure need to be taken very soon.

“The group has lost half of its net worth over the past four years, circa £3.5bn of erosion of wealth. It is one of the great national business calamities and it is being led by a board totally unable - because of a lack of experience - to hold them to account.”

Talking on the Today programme, Myners added that though the Co-op’s troubled former chairman Paul Flowers had been removed, the organisation’s board has remained largely the same throughout its problems.

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