Co-operatives under threat

The Preston Labour Party website reports that 'Preston Labour members met recently to discuss the [...] Labour Conference,' and outlines a couple of their views and concerns. Chief amongst the latter is a worry about co-operatives.

A fringe meeting, hosted by the Cooperative group, examined some of the possible responses to the cut backs being planned by the Tories and Liberal Democrats.  Concern was raised by some members about the tactics of the Tories, who had begun to de-mutualise public co-operatives in some areas, turning them into private shareholdings.

Jack Davenport, who chairs the Preston Labour Local Forum, also wrote into The Guardian, saying:

At the recent Labour conference, I attended a fringe meeting about co-ops and the opportunities to protect services in the face of the cuts. One member from a Tory heartland piped up about the local Tories' enthusiastic adoption of co-op principles in her area for local council and community services, only to see them exploit loopholes and demutualise them into private shareholdings.

Does anyone have examples of cooperatives that are under threat? I'm going to try and find out more about these 'loopholes', but a quick search doesn't reveal anything obvious on the Co-operative Group website.