Mon, 03 Jun 2013 | DIVISION SALE
The Co-operative Group is considering selling off its business division that has responsibility for handling travel.
The firm's travel arm is a joint venture with Thomas Cook and has more than 1,000 stores across the country. It looks likely that it would be just be the Co-op's stake in the travel business that could be on the market.
Selling the travel division of the business is part of the Co-op's plan to shore up its finances. The firm is also considering selling its electrical goods online store and a number of properties in order to stem the shortfall in its capital buffers, which is estimated to be in the region of £1 billion to £1.8 billion.
A further £500 million could also be generated by the sale of the mutual's motor and general insurance arm, while selling its life assurance business to Royal London is expected to raise £219 million. A further £240 million could also be generated from the sale of its general insurance business.
The bank held a board meeting last week in which directors were updated on progress in this area. Reports have stated that officials from the Bank of England are looking to get a solid plan in place to secure the Co-op's future and implement an effective survival strategy by the end of June at the latest.
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