Store closures update: Major supermarket chain at risk of shutting 34 sites in blow to shoppers

Shoppers were devastated to hear a significant number of Co-op branches are at risk of closing.

Around 34 Co-op supermarkets and nine funeral homes across Essex could shut their doors if a proposed merger between Chelmsford Star Co-operative and Central Co-op fails to gain member approval.

The member-owned society has warned it could cease to exist without the merger.

The society manages stores in Braintree, Chelmsford, Basildon, Thurrock and Southend, alongside two travel agencies and nine Co-op funeral directors. It also runs Quadrant department stores in George Yard Shopping Centre in Braintree and Moulsham Street in Chelmsford.

Chelmsford Star Co-op has confirmed that all stores, travel agents and funeral homes would be at risk if the society closes.

The proposed "transfer of engagements" would see all assets and liabilities transferred to Central Co-op, one of the UK's largest co-operative societies.

The society is "struggling financially" and requires the merger to survive in what it describes as a "changing" trading environment. Bosses have blamed their difficulties on increases in National Insurance contributions and the living wage.

The two Quadrant department stores will close in October regardless of the merger outcome, citing "long-term and increasing financial loss". Neither store has turned a profit since 2008.

Members must approve the transfer at two special meetings scheduled for July 16 and August 5. The proposal must pass at both meetings to proceed.

An anonymous Chelmsford Star Co-op member expressed concerns about the merger, warning that "non-profitable stores will be closed quite quickly once the transfer has occurred".

They predicted this would particularly affect "smaller shops in villages and housing estates", resulting in "loss of services and jobs in the local community".

The member also suggested alternatives to the merger, stating: "I believe that there are other options, including the disposal of department stores, the sale of the quadrant department stores building in Chelmsford and the use of that to reinvest in the business."

They feared the merger would bring "disadvantages to members" and claimed executives would receive "vast sums of money in severance packages".

Despite these concerns, Chelmsford Star and Central Co-op executives have championed the proposal. Chief executives Barry Wood and Debbie Robinson called it "an incredibly exciting moment for co-operation".

"In an increasingly competitive marketplace, we believe that by harnessing our shared values, we will build a stronger and more secure society," they said.

Presidents Tony Price and Elaine Dean added: "The transfer will ensure that all members continue to have an important voice as part of a stronger, more secure Society - ready to serve them for many more years to come."

Chelmsford Star Co-op has insisted there are "no planned closures of Chelmsford Star food stores, funeral homes or travel agencies as part of the proposed transfer".

A spokesman acknowledged that "some support functions may evolve over time" but said this would be done "with care, transparency and engagement with colleagues, members and unions".

The spokesman emphasised that "the focus of both Societies is to safeguard as many roles and services as possible".

They added that current members' capital is safe and highlighted benefits of joining Central Co-op, including "increased financial stability, job security, a pay increase, plus more wellbeing and financial support".

The merger decision rests with members at the upcoming July and August meetings. Without approval at both gatherings, the society has warned that all 34 stores and nine funeral homes face an uncertain future.