A YORK businessman has been named as the new chief executive of the Co-operative Group.

Richard Pennycook, former finance chief at Yorkshire supermarket group Morrisons, has been interim chief since the departure of Euan Sutherland earler this year.

The formal appointment of Mr Pennycock, who lives on the outskirts of York, comes as the Co-operative Group reported its highest-ever loss – £2.5 billion for 2013 – following the near-collapse of its banking arm.​

Mr Pennycook, who describes himself as an ​adopted Yorkshireman, became Morrisons’ finance director in 2005, leaving the Bradford-based company in 2013.​ Before joining Morrisons he was the finance director of motoring organisation RAC following on from being finance director of cider group HP Bulmer, homewares chain Laura Ashley and pubs group JD Wetherspoon.

He is a senior independent director at York-based housebuilder Persimmon and was awarded FTSE 100 Finance Director of the Year in 2011 at the FDs’ Excellence Awards​.

​Mr Pennycook​, who will be paid a basic salary of £1.3 million, said the Co-op is now ready to rebuild its shattered reputation.

He said: “The businesses are all underperforming and we make no bones about that, but they all fit very well with the purpose of the Co-op to serve our members and be at the heart of our communities.”

H​e said there was still a lot of work to be done, with an estimated three year turnaround, and admitted this ​i​s likely to mean further job cuts.”