THE former chief executive of the Co-op has told the JEP of the “sadness” he felt over taking his former employer to the Royal Court after being awarded more than £3m in damages and lost earnings – a ruling the retailer has pledged to appeal.
Colin Sinclair MacLeod (55) brought a psychological injury claim against the Society after he was dismissed in 2020 following a period of sickness, leading to a weeks-long trial earlier this year to establish whether members of the board had worked to oust him.
Handing down the court’s judgment late on Tuesday, Commissioner Matthew Thompson said three directors of the Co-op – Paula Williams, Jennifer Carnegie and Carol Champion – had acted “in bad faith” towards Mr Macleod.
“The Co-op failed in its duty of care to Mr MacLeod and caused him psychiatric injury,” he said. “That injury was reasonably foreseeable.”
He told the JEP that doing so felt “almost like prosecuting one of my children”, and that, while he felt relief at the result, he was also saddened by it.
In an statement to shareholders issued 20 minutes after the full judgment of the Royal Court was published at 9am on Wednesday morning, correct chief executive Mark Cox issued a statement to shareholders saying it did not accept the findings.
“Whilst we acknowledge the judgment, with respect, we do not agree with the findings, and after liaising closely with our insurers and legal advisers, consider there are substantial grounds for appeal,” it said.
“We therefore intend to challenge the decision through the appeal process.”
Mr MacLeod was signed off from work from May 2019 and was dismissed in 2020. He hadn’t fully recovered at that stage, Mr Thompson said, and this caused a relapse.
The court awarded Mr MacLeod £3,515,407 – a combination of earnings he lost in the past and future, and damages.
Mr MacLeod joined the Co-op aged 20 as a trainee, and became Chief Executive in 2010, at the age of 40.
Represented by Advocate Michael O’Connell, Mr MacLeod alleged that the three directors had a “secret agreement” to oust him.
His advocate argued that there had been a “bullying and a smear campaign”. The court was also told of “dysfunctional” board meetings, including one in which Ms Carnegie was reported to have “shouted aggressively” at Mr Macleod while he was unwell.
Evidence considered over the course of the case included WhatsApp chats in which directors described gathering “evidence” and making somebody “squirm”.
During the trial, Mr MacLeod said the stress he felt was such that he drank more alcohol, gained weight, suffered from insomnia and would sometimes “shake violently” at the mention of work.
He said he was eventually signed off because of hostility, criticism, and an increasing workload, managing 12 direct reports. He was dismissed in March 2020, as he was preparing to return to work.
Advocate Jeremy Heywood, defending the Co-op, argued that there was no evidence of a psychiatric condition.
He also said that there was no “secret agreement” to oust Mr Macleod, instead pointing to the Society’s difficult financial situation.
The court awarded Mr MacLeod £40,000 in general damages, including £40,000 in loss of congeniality for the loss of a job he enjoyed.
He was also awarded loss of earnings up until the age of 60, at a rate of £75,000 going into the future.
The Society must file the grounds for its appeal by 30 January 2026, with discussions ongoing over when any payment would be due.
“Relieved and happy – and a bit sad”
Speaking to the JEP following the verdict, Mr MacLeod said he felt “relieved and happy – and a bit sad”.
“The key point for me is that I retain huge fondness and affection for the co-operative movement and ideals,” he continued.
“I lived my life by those ideals and was imbued with them for the past 30 years.
“So it is with great sadness that I was compelled to take a stand against the business that I grew up in.”
Taking the Co-op to court, he said, felt “almost like prosecuting one of my children”, and said the ensuing legal battle was “torture at times”.
Mr Macleod added: “Co-op values are founded on principles like honesty, openness, recognition and taking responsibility.
“I’m clear that those principles have not been lived by the Society and I sincerely hope that this lesson can be learnt and that those values can be brought back to the forefront of how the Society operates.”
He said he was “proud” to have prevailed and was pleased to be able to “finally tell my story” after what he described as “six years of dignified silence”.
Asked what will come next for him, he said his immediate plan was to enjoy “the first Christmas that I will have enjoyed for six years”, and that he was “open-minded about what the future might hold”.
