Struggling Co-op sells security arm for £41.5m in battle to balance books

Bradford-based Sunwin, which employs 1,500 staff and guards cash in transit and provides ATM support, is being sold to American ATM management firm Cardtronics.

The transaction is expected to be completed in November, following the separation of Sunwin from The Co-operative Group.

All 1,500 Sunwin staff will transfer to Cardtronics, which will also take on the head office in Bradford and 14 regional depots.

The Co-op has given Cardtronics a contract to operate the ATM estate within its Co-operative Food stores, which will start no later than January next year.

Richard Pennycook, interim group chief executive, said: “Cardtronics is a world-leader in managing ATMs and the sale to this organisation will result in continued excellent service levels to those businesses and individuals that use their products and services.

“Sunwin Services Group and its employees have delivered an excellent level of service, and I have no doubt the business will continue to develop further.”

Pinsent Mason is acting as legal adviser to the Co-op.

The Co-op, which employs about 7,600 people in Yorkshire, will report half-year results tomorrow. Members will be looking for signs that management has finally got a grip on problems which brought it to its knees. It slumped to a £2.5bn loss for 2013 after being dragged down by the near-collapse of its banking arm.