Manchester-headquartered Co-Op Bank goes up for sale

Just four years after almost collapsing, the Co-Operative Bank has announced plans to put itself up for sale.

The Manchester-headquartered company this morning (February 13) said it is inviting offers to acquire all of its shares.

Putting itself up for sale, the firm said, has always been a “potential outcome” of its turnaround strategy.

At present, 20% of the Co-Operative Bank is owned by the wider Co-Operative Group.

The banks believes its “customer-led ethical position, attractive product set, multi-channel approach and four million customers” make it a “strong franchise” offering “significant potential” to prospective buyers.

The sale would help the bank build its capital base and meet longer term UK bank regulatory capital requirements. Co-Op Bank said it has so far struggled to do so due to the continuing impact of low interest rates.

According to BBC News, bank chairman Dennis Holt said: “Customers value the Co-operative Bank and our ethical brand is a point of difference that sets us apart in the market.

“While our plan has been impacted by lower for longer interest rates, the costs associated with the sheer scale of the transformation and the legacy issues we faced in 2013, there is considerable potential to build the bank’s retail franchise further using the strength of the brand, its reputation for strong customer service and distinctive ethical position.”