Quick answer
Co-operative Group completed its takeover of The Southern Co-operative on 26 July 2026. The Competition and Markets Authority found the deal could reduce competition for attended funerals in two local areas, and on 12 October 2026 it began consulting on the Co-op’s offer to sell two funeral homes: The Co-operative Funeralcare in Alton, Hampshire, and JB Hall Funeral Directors, the larger of Southern’s two sites in the area around the Co-op’s Earley funeral home. Comments close on 27 October. Any buyer must be independent of the Co-op, approved by the CMA and able to run the business, so an independent funeral director needs its funding lined up before making an offer.
Which funeral homes is the Co-op selling, and why?
Co-operative Group completed its acquisition of The Southern Co-operative on 26 July 2026. On 29 September the CMA said the merger could reduce competition for convenience store shoppers and for people arranging attended funerals in several local areas, and that it provisionally believed the Co-op’s offer to sell 15 convenience stores and two funeral homes could resolve those concerns (CMA press release).
The CMA’s notice of consultation, published on 12 October, names the two funeral homes:
- The Co-operative Funeralcare, Alton (GU34). Selling this Southern site removes the overlap between the two businesses in the area around Alton.
- JB Hall Funeral Directors (RG41). The larger of Southern’s two sites in the area around the Co-op’s Earley funeral home. The Co-op first offered a different Southern site there, which the CMA found would not be enough.
Comments on the proposals close on 27 October 2026. The CMA will then decide whether to accept them.
Who can buy them, and when?
The proposed undertakings set the rules for a sale. The buyer must be independent of and unconnected to the Co-op, must be approved in advance by the CMA in writing, and must have the financial resources, expertise, incentive and intention to keep each business running as a viable and active provider of attended and pre-paid funeral services. Employees working only at those sites, and the property associated with them, form part of what is sold.
The Co-op must complete the sales within seven months of the CMA accepting the undertakings, and must tell the CMA about offers within five working days of receiving them. The documents do not say whether the premises are freehold or leasehold, or what the businesses might sell for.
How do independent funeral directors fund buying a funeral home?
Buying an established funeral home usually means paying for goodwill (the local name and the trade it brings), the premises or the lease, vehicles, mortuary and refrigeration equipment, and enough cash to run the business from day one. Lenders tend to fund each part in a different way:
- Acquisition finance and goodwill finance for the purchase price.
- Premises finance if the property is included and you are buying it.
- Vehicle finance for hearses, limousines and private ambulances.
- Working capital for the first months after completion.
Lenders usually want to see the buyer’s own track record, the branch’s funeral numbers and accounts, and how much the buyer is putting in. Our guide to buying a professional practice sets out every cost to budget for, and our guide to preparing a finance application covers what lenders ask for.
What should a buyer check before making an offer?
- Pricing. Under the CMA’s Funerals Market Investigation Order 2021, funeral directors must display a Standardised Price List in branches and online (CMA guidance for funeral directors). Compare the branch’s prices and volumes with your own.
- Pre-paid plans. Ask how pre-paid funerals linked to the branch will be handled after the sale.
- Staff. Check who transfers with the business and on what terms.
- Premises and equipment. Check the lease or title, and the condition of the mortuary, refrigeration and vehicles. Equipment finance can spread the cost of any upgrades.
The government also plans to regulate the funeral sector in England and Wales, so it is worth costing any improvements before you buy. Our news on funeral regulation explains what has been announced.
What does it mean for your funding, and what should you do next?
Two branches is a small sale, but established funeral homes rarely come to market this openly, and the CMA must be satisfied that a buyer has the resources to run them. If you operate near Alton or Earley, or want to grow by buying branches, talk to lenders before you talk to the seller.
- Follow the CMA’s decision on the undertakings after 27 October.
- Work out what you could afford, based on your current accounts.
- Prepare a short business plan for the branch.
- Agree in principle how you would fund goodwill, premises and vehicles.
Our pages on succession finance and growing a practice cover other ways funeral businesses change hands. We search the market across 300+ lenders and approach those that understand funeral directors. Instant Quotes shows your matches in minutes, with no credit check.
Common questions
Which funeral homes is the Co-op selling?
The Co-operative Funeralcare in Alton, Hampshire, and JB Hall Funeral Directors in the area around the Co-op’s Earley funeral home, as proposed in the CMA’s consultation of 12 October 2026.
Can I get a loan to buy a funeral director’s business?
Yes, subject to status and lender criteria. Lenders often fund goodwill, premises and vehicles separately and look at both your own accounts and the business you are buying. See acquisition finance.
How long does the Co-op have to sell the funeral homes?
Under the proposed undertakings, the sales must complete within seven months of the CMA accepting them. The consultation closes on 27 October 2026.
Does checking my options affect my credit file?
No. Instant Quotes involves no credit search. A lender only runs its own checks, with your permission, if you choose to apply.
Official sources
Published 22 October 2026. Figures and dates are taken from the sources named and were correct on that date. This article is for general information only and should not be treated as legal, tax, accounting or financial advice. Funding availability and lender requirements depend on individual circumstances.
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