(edit title) Coop Sweden could go bankrupt One billion kronor debt Options

[eurobloke]

I am surprised that the Local hasn't picked this up at all this week, the news that Kooperativa förbundet could go bankrupt due to the companies joint debt hit one billion kroner.

[Beavis]

no shock there.. a bit of elementary stock rotation would fix about half that debt. Buy 1000 items of the same product when you only sell 30 is not sustainable long term. Its bad for the customer, its bad for business. Most of their real estate space is taken up with rotting stock. The shops could easily be half the size with 10 times the product choice. Yes they will take a small amount of extra time to restock shelves and cost a little more as regards staffing, but consider the savings made on real estate, customer satisfaction, product choice, better competition etc etc. Wake up coop (and the others!)

[Essingen]

Interesting article. Do the members have any liability for the debts?

[Hisingen]

I'd be inclined to think that the Management would be first in line, but that is definitely an interesting point with regards to the members.
Many of the smaller stores do not have the same open spaces as do the Forum type, and shelf replenishment - at least in my local store - is pretty prompt, including the removal of exceeded-best-before dated foodstuffs.
I have read somehwere that in actual fact some of the big losses amount from pilfering and shoplifting. That sort of thing is very prevalent, and seemingly on the increase for whatever reason, and is applicable in all forms of trade. Storekeepers everywhere experience the loss of goods in this way, a trend that results in increased prices and in consequence more shoplifting since it gets even more profitable, resulting in a lower turnover, but higher intake of goods to cover it. An evil circle. It applies not just to the Co-op - or Coop as it is here.

[Yorkshireman]

A little bit of an over-reaction! ...Coop is in the middle of restructuring, it's 2012 result included 1.2 Billion of 1-off costs ... they have 3 Billion in cash at the bank, and 18.8 Billion in assets. Food is only part of their business within the group.