Co-ops in link-up

The link-up could take place as early as November.

Ilkeston's major retail operations are travel and motor sales, both of which have suffered in recent years. Last year group sales fell £3.4 million to £148.5 million, leaving it with a pre-tax deficit of £61,000.

As well as one of the largest independent travel companies in the UK, Derbyshire-based Ilkeston Co-op employs around 800 people in 42 branches.

Lichfield's Midlands Co-op currently trades across ten different counties and runs successful retail, travel, funeral and transport businesses with gross sales in excess of £749 million and 7,600 employees.

Midlands Co-op chief executive, John Fitzgerald said: "We are delighted to be in discussion with our neighbour, Ilkeston Co-op, and the prospect of trading co-operatively is logical in the current economic climate."

Ilkeston group ehief executive, Tony Teatum, said: "A merger with Midlands Co-op makes strategic sense, although understandably there is a sense that we have reached the end of an era.

"Midlands Co-op is a very large, financially sound neighbouring co-op, whose plans and aspirations meet with the long-term interests of Ilkeston Co-op."

The board of Ilkeston Co-op will make a recommendation to its members that the merger should go ahead at a special meeting to be held on September 6. This will be followed by a second confirmatory meeting, on September 27.

If, as expected, members vote in favour of the merger, completion of the transfer of engagements could be completed in early November.