Major supermarket chain at risk of closing 34 stores after ‘serious financial hardship

By JANE DENTON

Updated: 12:12 BST, 1 July 2025

More than 30 Co-op supermarket stores and nine funeral homes could be closed in Essex if a planned merger deal does not go ahead, Chelmsford Star Co-operative has warned. 

Among other locations, Co-op supermarket shops it manages in Braintree, Chelmsford, Basildon, Thurrock and Southend could be at risk. 

This week, Chelmsford Star Co-op admitted it was ‘struggling financially’ and could be forced to close if the merger does not go ahead. 

Last month, Lichfield-based Central Co-op opened discussions with Chelmsford Star Co-op in Essex about a possible tie-up.

If it goes ahead, the deal would see a transfer of Chelmsford Star Co-op into the larger Central Co-op, which would create a society with an estimated £1billion turnover.

According to Chelmsford Star Co-op, if members do not approve the deal, a string of local Cop-op shops and funeral homes could be at risk of closure. 

Warning: A string of Co-op shops in Essex could close if a merger does not go ahead, Chelmsford Co-op said

Chelmsford Star Co-op also runs two travel agencies in Essex, as well as the the Quadrant department stores in George Yard Shopping Centre in Braintree and Moulsham Street in Chelmsford.

According to Essex Live, separate to the merger plans, the two Quadrant stores will close in October this year, with the society citing ‘long-term and increasing financial loss’, with neither store making a profit since 2008. 

The member-owned society which has been operating stores in Essex since the 1800s, said it could cease to exist if it does not merge with the Central Co-op. 

Chelmsford Star Co-op and Central Co-op have been trading for more than 320 years in total and offer services such as funerals, property investment and holidays, while running a number of Co-op convenience stores. 

The proposed deal requires approval by members of Chelmsford Star Co-op at two special members’ meetings, due to be held on 16 July and 5 August. 

The deal plans must be approved by members in both meetings in order to enable the merger to go ahead. 

Chelmsford Star Co-op said it required the size and scale of Central Co-op’s resources in order to tackle a ‘changing’ trading environment, which they claimed has been ‘exacerbated’ by changes announced by Rachel Reeves in the Autumn Budget. 

Swathes of firms across Britain are struggling after Reeves upped employer national insurance contribution and the minimum wage. 

This is Money contacted Chelmsford Star Co-op for comment.  

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Major supermarket chain at risk of closing 34 stores after ‘serious financial hardship

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