Business
Co-op expected to reveal financial hit from cyber attack
The Co-operative Group is expected to shed light on the impact of a damaging cyber attack in its first financial update since being targeted by hackers.
Shoppers were faced with empty shelves and issues with payments during the fallout from the cyber incident in April, as a raft of retailers were hit.
On Thursday, the retail and funerals specialist will reveal its results for the first half of 2025, covering the period when it was hit hard by the cyber attack.
The company shut off parts of its IT systems after the attack, in which hackers accessed and extracted members’ personal data.
In July, the company confirmed that all 6.5 million members of the Co-op had their data stolen in the incident.
Chief executive Shirine Khoury-Haq said she was “devastated” by the impact of the incident on workers and members.
She told the BBC that “names, addresses and contact information” for all of its members were accessed.
The boss said the hackers created a copy of one of the firm’s files but were unable to attack its platforms further and install planned ransomware.
However, the company has not yet revealed the full financial impact of the crime, which affected store transactions and product availability.
The cyber attack was one of several against UK retailers, with both Marks & Spencer and Harrods also significantly impacted.
Marks & Spencer, which stopped all online sales for six weeks following its hack, said it faced a £300 million financial hit.
The Co-op’s cyber incident came amid a challenging period for the retailer, which is facing higher costs and pressure on consumer confidence from the rising cost of living.
Last year, the company reported improved profits but warned in April it would face more than £200 million in costs and spending pressures in 2025.
The retail group warned cost hits would include another £80 million from the impact of shoplifting across its retail estate, following a similar bill in 2024, and £50 million from the increase in national insurance contributions.
The group saw revenues grow by 1.5% on a pro-forma 52-week basis to £11.3 billion for last year.
Recent statistics from industry experts at Worldpanel have pointed to weaker sales in recent months.
Figures from earlier this week, indicated that the Co-op saw sales slip by around 2% over the 12 weeks to September 7, compared with the same period a year earlier.
The data also indicated that the retailer has lost market share in the UK grocery sector over the past year as a result.
Nevertheless, the data focuses purely on the group’s grocery business and compares the retailer directly with much larger supermarket stores from rivals including Tesco.
Liv McMahon and
Chris Vallance,Technology reporters
Getty ImagesGrand Theft Auto (GTA) maker Rockstar Games has been accused by a trade union of sacking staff in the UK to stop them from unionising.
The Independent Workers’ Union of Great Britain (IWGB), which represents people working in the gaming sector, said 31 workers were fired from Rockstar’s UK studios on 30 October.
The union led rallies outside the company’s offices in Edinburgh and London on Thursday to protest what it described as “the most blatant and ruthless act of union busting in the history of the games industry”.
The BBC has approached Rockstar’s parent company, Take-Two Interactive, for comment, which has reportedly claimed staff were sacked for sharing confidential information.
IWGB“Last week, we took action against a small number of individuals who were found to be distributing and discussing confidential information in a public forum, a violation of our company policies,” a Rockstar spokesperson told Bloomberg in a statement.
“This was in no way related to people’s right to join a union or engage in union activities.”
At large video game studios, information about game development is tightly controlled – with employees often signing agreements not to share confidential information.
Rockstar’s upcoming GTA 6 is expected to be one of the best-selling games of all time, with fans clamouring for any news ahead of its May 2026 release date – meaning security around any information will be heightened at the studio.
But union president Alex Marshall accused Rockstar of deflecting from the “real reason” for firing staff – which the IWGB believes is their union involvement.
“They are afraid of hard working staff privately discussing exercising their rights for a fairer workplace and a collective voice,” he said.
“Management are showing they don’t care about delays to GTA 6, and that they’re prioritising union busting by targeting the very people who make the game.”
According to the IWGB, the UK workers fired at the end of October were part of a group discussing forming a union at the company.
Mr Marshall said its only non-Rockstar employees were union organisers.
“We refute that confidential information was shared publicly,” IWGB said in a statement.
Dr Paolo Ruffino, senior lecturer in digital curation and computational creativity at Kings College London, said it was a “textbook” case of non-disclosure agreements (NDAs) being used by gaming firms.
“They’re used at every level in gaming, creating a culture of secrecy that makes investigating working conditions nearly impossible,” he said.
“The real question is whether these dismissals were about leaked information or protected union activity – a distinction UK employment law requires but which NDA allegations make difficult to prove.”
‘Equalising the scales’
Speaking to the BBC at a picket outside the Rockstar North office in Edinburgh, organiser Fred Carter said he was standing alongside staff who had been sacked “without warning” and “without reason”.
“They’ve been fired, we believe, because they’re union members – which is a protected activity in the UK,” he said.
“We’re asking people to come out and support us, to demand their jobs back and demand accountability from Rockstar.”
A former employee speaking at the Edinburgh rally said there was a “power imbalance” at play in conversations with management.
“Not everyone is comfortable speaking up, and even when you do you can get shut down because you’re just one person,” they said.
Workers at BAE Systems in Lancashire have been cleared to proceed with planned industrial action after the High Court dismissed the company’s last-minute bid to block strikes.
The aerospace giant had sought an injunction against Unite the Union members at its Warton and Samlesbury sites, arguing their planned walkout was unlawful.
However, Mr Justice Soole refused to grant the injunction on Thursday, stating: “Having considered the evidence, the application is dismissed. I will give my reasons later.”
The ruling paves the way for strikes, which the union said were due to begin on Wednesday and continue until 25 November, following the rejection of a 2025 pay offer.
In written submissions, Bruce Carr KC, representing BAE, contended that Unite had invalidated the strike’s lawfulness by instructing members not to train managers in aircraft testing after giving notice to ballot on 24 September.
The barrister added: “It is the claimant’s case that the evidence clearly demonstrates that at that meeting and thereafter, Unite called on its members employed as quality professionals, to take industrial action in the form of refusing to undertake the training of managers employed by the claimant.”
Mr Carr said that in mid-September BAE wanted the training after “a number of absences” and while it was “considering business continuity plans in the event of possible industrial action”.
This training occurred between 22 September and 10 October, after which the quality professionals refused to continue following instructions from the union, Mr Carr said.
These workers breached their duty to BAE because they are “required to act in the best interests of the company to carry out such duties in respect of their appointment as they may reasonably be called upon to undertake”, the barrister added.
Oliver Segal KC, for Unite, said the training was a “request”, not an “instruction” and therefore workers who refused were not in breach of their contract.
He described managers being trained for the testing role as “unprecedented” and that union representatives had asked workers to get the “request” in writing while they seek legal advice.
In written submissions, he said: “The evidence in this case is that the defendant never even suggested, let alone ‘called’ on, its members who are quality professionals to refuse to comply with a management instruction to provide training to management executives.”
Mr Segal said BAE was “ludicrously interpreting” emails between union representatives discussing the training as instructions for union members not to comply.
The barrister also said there was no refusal to train the managers after 10 October and that one of the quality professionals gave a statement saying his team never stopped providing training.
He continued: “The reality is that this application is a last-minute, desperate attempt by the claimant to neuter the industrial action, which is both factually mis-premised and legally misconceived.”
Mr Carr said on Thursday that BAE is considering an appeal.
A BAE spokesperson said: “We note the ruling by the High Court. We believe we had good grounds for the legal challenge and will consider the court’s judgment.
“We respect the right of employees to engage in industrial action and remain committed to a partnership approach with all our trade union groups.”
The PA news agency understands that less than 70 employees out of 12,000 are involved in the strike action while production lines are continuing to operate.
Speaking after the decision, Unite general secretary Sharon Graham said: “This unsuccessful attempt by BAE to prevent a lawful strike will have severely damaged the goodwill it has with its workforce.
“BAE is a multibillion-pound company making record profits.
“It now needs to come back to the negotiating table with an acceptable offer for striking workers in its Air division, rather than wasting money on pointless legal threats.
“Otherwise, our members will be taking strike action throughout November in their fight for fair pay.”
Rachel Halliday of Thompsons Solicitors, which represented Unite, added: “This is a clear win for Unite and for workers everywhere.
“The High Court has confirmed that the union acted lawfully at every stage, and that BAE’s attempt to block strike action had no basis.
“Today’s decision will send a strong message to employers that the courts cannot be used to silence workers standing up for fair pay and respect.
“Unite acted responsibly throughout, adhering to all statutory requirements, and this important decision reinforces the union’s members’ right to strike.
“Thompsons is proud to have stood with Unite in defending this principle. Working people have the right to be heard – and to take lawful industrial action when negotiations fail.”
Workers at BAE Systems in Lancashire can continue to strike following the dismissal of a bid for a High Court injunction aimed at blocking industrial action.
The company asked a judge to order Unite the Union members at the Warton and Samlesbury sites to cease their planned action in a last-minute hearing on Tuesday.
Strikes were due to start on Wednesday and last until November 25, according to the union.
But Mr Justice Soole refused to grant the injunction on Thursday.
He said: “Having considered the evidence, the application is dismissed. I will give my reasons later.”
Bruce Carr KC, for BAE, said in written submissions for the hearing on Tuesday that Unite had given notice to ballot on September 24 after rejecting the 2025 pay offer.
He said that following this, union representatives told members not to train managers in aircraft testing and that this amounted to a call to industrial action, therefore invalidating the lawfulness of the upcoming strike.
The barrister added: “It is the claimant’s case that the evidence clearly demonstrates that at that meeting and thereafter, Unite called on its members employed as quality professionals, to take industrial action in the form of refusing to undertake the training of managers employed by the claimant.”
Mr Carr said that in mid-September BAE wanted the training after “a number of absences” and while it was “considering business continuity plans in the event of possible industrial action”.
This training occurred between September 22 and October 10, after which the quality professionals refused to continue following instructions from the union, Mr Carr said.
These workers breached their duty to BAE because they are “required to act in the best interests of the company to carry out such duties in respect of their appointment as they may reasonably be called upon to undertake”, the barrister added.
Oliver Segal KC, for Unite, said the training was a “request”, not an “instruction” and therefore workers who refused were not in breach of their contract.
He described managers being trained for the testing role as “unprecedented” and that union representatives had asked workers to get the “request” in writing while they seek legal advice.
In written submissions, he said: “The evidence in this case is that the defendant never even suggested, let alone ‘called’ on, its members who are quality professionals to refuse to comply with a management instruction to provide training to management executives.”
Mr Segal said BAE was “ludicrously interpreting” emails between union representatives discussing the training as instructions for union members not to comply.
The barrister also said there was no refusal to train the managers after October 10 and that one of the quality professionals gave a statement saying his team never stopped providing training.
He continued: “The reality is that this application is a last-minute, desperate attempt by the claimant to neuter the industrial action, which is both factually mis-premised and legally misconceived.”
Mr Carr said on Thursday that BAE is considering an appeal.
A BAE spokesperson said: “We note the ruling by the High Court. We believe we had good grounds for the legal challenge and will consider the court’s judgment.
“We respect the right of employees to engage in industrial action and remain committed to a partnership approach with all our trade union groups.”
The PA news agency understands that less than 70 employees out of 12,000 are involved in the strike action while production lines are continuing to operate.
Speaking after the decision, Unite general secretary Sharon Graham said: “This unsuccessful attempt by BAE to prevent a lawful strike will have severely damaged the goodwill it has with its workforce.
“BAE is a multibillion-pound company making record profits.
“It now needs to come back to the negotiating table with an acceptable offer for striking workers in its Air division, rather than wasting money on pointless legal threats.
“Otherwise, our members will be taking strike action throughout November in their fight for fair pay.”
Rachel Halliday of Thompsons Solicitors, which represented Unite, added: “This is a clear win for Unite and for workers everywhere.
“The High Court has confirmed that the union acted lawfully at every stage, and that BAE’s attempt to block strike action had no basis.
“Today’s decision will send a strong message to employers that the courts cannot be used to silence workers standing up for fair pay and respect.
“Unite acted responsibly throughout, adhering to all statutory requirements, and this important decision reinforces the union’s members’ right to strike.
“Thompsons is proud to have stood with Unite in defending this principle. Working people have the right to be heard – and to take lawful industrial action when negotiations fail.”
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