The Co-operative Group is selling its crematoria to funeral services group Dignity and will plough the proceeds into improving its funeral homes business.
The Co-op will receive £43m for the five crematoria. All staff will transfer to the new owner, which has more than 725 funeral homes and 39 crematoria.
The crematoria are in Craighton, Glasgow; Emstrey, Shropshire; Grenoside, South Yorkshire; Lichfield, Staffordshire; and Stockport, Greater Manchester. These are areas where Dignity does not have crematoria at present.
Richard Lancaster, the managing director of Co-op Funeralcare, said: “This agreement is key in allowing us to further invest in providing essential funeral services to our members and customers in communities across the UK as we have done for over 100 years.”
The sale proceeds will be reinvested in the Co-op’s funeral parlours, to fund the rollout of new products and services. This forms part of a £1.3bn investment over three years to breathe fresh life into the 172-year-old mutual. There are plans to refurbish the funeral homes and supermarkets and to install new systems in its insurance business, as well as improving products and services.
As part of its revamp, the Co-op is adopting a new blue logo with a cloverleaf-like design that is reminiscent of its 1960s logo. The group traces its roots back to the Rochdale Society of Equitable Pioneers in 1844, but came close to collapse three years ago when a £1.5bn black hole was discovered at its banking business.
The bank’s former chairman, Methodist minister Paul Flowers, was engulfed in a sex and drugs scandal, and the Co-op group’s chief executive resigned after the size of his pay package – £6.6m – was revealed by the Observer.
Since then, new bosses have been brought in as part of a radical shake-up of the board, several businesses have been sold off, and the Co-op group’s stake in the bank has been reduced to 20%.
