The Co-operative’s rescue plan for its bank will result in shedding 15% of its branches and cutting its share to 30%.

The rescue deal will leave creditors to the group – led by a six hedge funds – with 70% of shares in the bank.

The Co-op Bank has been battling to fill a £1.5bn hole in its balance sheet caused by bad loans and its merger with Britannia building society.

The crisis has rocked the group, which operates thousands of convenience stores through its Co-op Food business.

“We have taken a major step forward towards achieving our plan to secure the future of the bank,” said group chief executive Euan Sutherland. “We are optimistic about the future.”

Last month Co-operative Group chairman Len Wardle revealed he is to step down from the company next year after six years in the position.