Co-op writes off its bank

THE Co-op Group is braced for a £140m hit as it re-values its stake in the beleaguered bank it used to run.

Bosses lost control of the Co-op Bank in 2013 after an accounting scandal. They retained a 20pc stake valued at £140m. The rest was bought by US hedge funds.

It is understood the Coop Group will mark down the value of its shares to zero in annual accounts on Thursday, pushing it into an overall loss. The decision will fuel fresh speculation about the bank’s future.

It was put up for sale in February amid a debate over its financial health.

But insiders insisted the write-off did not mean the lender was worthless.