The Co-operative Group has confirmed that it will hand control of its troubled banking arm to a group of powerful investors through a new rescue plan.

The Co-Operative Group Ltd has agreed to cede control of its banking unit to creditors after 141 years, part of a deal to allow the lender to plug a £1.5bn (€1.77) capital shortfall.

Lads’ mags will not be sold in thousands of Co-operative stores in the UK from today after the company said publishers refused to meet requests to put them in sealed “modesty” bags.

The Co-operative in the UK has given publishers of lads’ magazines an ultimatum to cover them up in “modesty bags” or face having them removed from shelves across 4,000 stores.

The Co-operative Group today unveiled a deal with regulators that will see the mutual plug a £1.5 billion shortfall in the balance sheet of its banking arm.

“Traditional capitalist models” were not working and an alternative is needed, members of the UK's Co-operative Group were told today at its AGM.

Lloyds Banking Group reduced its exposure to struggling Spain today by agreeing to sell its retail banking operations in the country.

A return to dividends at Lloyds Banking Group could be on the cards after its chief executive said the state-backed bank’s improving health increases the possibility of payouts.

First quarter figures from Lloyds Banking Group and Royal Bank of Scotland come amid intense scrutiny on the taxpayer-backed players after Lloyds revealed the collapse of its planned sale of 632 branches.

Britain's Co-operative Group is to recruit 15 young people to join a new advisory board to help shape future policies.

Agriculture Minister Simon Coveney will brief a parliamentary committee on the horse meat controversy today after a second processing plant tested positive for equine DNA.

A second Irish meat processing plant has tested positive for traces of horse meat.

The company which supplied halal food found to contain traces of pork DNA was named today.

Major food retailers and suppliers are being summoned to an urgent meeting following a spate of mis-labelled or contaminated food products reaching the UK public.

The value of contracts lost by Larry Goodman’s Silvercrest beef plant has topped €50m after Burger King cancelled its deal with the Monaghan factory.

The retail sector was firmly in the spotlight on the London market today after a raft of weather-hit updates from leading high street chains.

Lloyds Banking Group has reached agreement to sell 632 branches to the Co-operative Group in a deal worth up to £750m (€955m).

Shares in commodities giant Glencore fell nearly 4% today amid fears a mega-merger with Xstrata will collapse.

Taxpayer-backed Lloyds Banking Group announced 500 new jobs today at a business it is being forced to spin off by European regulators.

The Co-operative Group has said it will put in a renewed bid for 632 branches being sold by Lloyds Banking Group.

CORK-BASED retail lighting company Nualight has acquired Dutch firm Lumoluce for €11 million.

The banking arm of the Co-operative Group will today offer everyday-banking services from an additional 250 high street branches as it completes the integration of Britannia Building Society.

Fears over the health of the UK retail sector were fuelled today as a flooring firm fell into administration and confidence on the high street hit a two-year low.

A RAFT of companies are pulling advertising from the News of the World in the wake of phone-hacking allegations.

RUPERT Murdoch said phone hacking at one of his flagship newspapers was “deplorable and unacceptable” as David Cameron ordered a public inquiry into the scandal.

The proposed takeover by holiday giant Thomas Cook of two British travel businesses was referred to UK competition authorities by EU regulators today.

The Co-operative Group today reported a 17% rise in half-year profits, but warned trading conditions would remain challenging until at least the end of next year.

The UK competition watchdog today hit 10 retailers and two tobacco manufacturers with fines totalling £225m (€255.9m) for "unlawful practices" in pricing of cigarettes, cigars and rolling tobacco.

The Co-operative’s £100m (€147m) brand overhaul today looked to have paid dividends as the group unveiled its biggest annual rise in membership in its 160-year history.

The UK's two biggest co-operatives have agreed the terms of a merger to form the world's largest consumer co-operative group.

Co-operative Group became the UK’s fourth largest pharmacy chain today after announcing deals to buy two regional chemist busineses.

The Co-operative Group expanded its funeralcare operations today after securing majority control of the UK’s fourth-largest player.

The largest consumer co-operative group in the UK announced the closure of 10 department stores today as part of plans to get out of the loss-making sector.

Ian Guider

THE Musgrave Group bid for Britain's Londis outlets looks almost certain to be successful after a potential rival yesterday pulled out of the race.

Tesco is to move into the holiday market with services including accommodation and flights to be made available on their UK website.