Past mismanagement is to blame for the problems at the Co-operative Group, according to chief executive Richard Pennycook.
Mr Pennycook told BBC Radio 5 Live that the groups former management had “let down” the company, but that changes to its management structure and cost cutting would improve profitability and allow it to compete with larger rivals.
As the company comes out of a two-year crisis, Mr Pennycook added that it would focus on its grocery shops and funeral services.
He told the BBC: “Over the last two years there's been a very significant crisis that we had to work our way through. And I think in terms of any reflection of that recent past, everyone found that shocking and disappointing. "We let the co-operative movement down in a fairly significant way. After 150 proud years where the Co-op had a reputation for doing the right thing.
"But today as we look forward to rebuilding the movement I think the Rochdale Pioneers (the group’s founders) would be excited by the potential that we have to do that."
