Dozens of Post Office branches inside former WH Smith stores could shut under major restructuring plans, sparking fears some communities will be left without vital postal services.
Union leaders have warned parts of the UK risk becoming “postal deserts” if the closures go ahead.
Up to 60 Post Office counters operating within TGJones stores face potential closure as part of plans put forward by private equity owner Modella Capital.
The former WHSmith high street chain, which was rebranded after being acquired by Modella last year, currently hosts 180 Post Office branches across its store network.
Under proposals sent to creditors, Modella is seeking to change its agreement with the Post Office by reducing the notice period for branch closures from six months to 56 days in cases where stores lose their leases.
Creditors are due to vote on the restructuring plan next month. The proposed changes could affect stores where landlords reject rent reduction requests and move to take back properties.
Seven of the eight TG Jones stores already confirmed for closure contain Post Office branches, affecting communities across England, Scotland and Wales.
The shuttered outlets will include two in the capital — East Ham and Waltham Cross — alongside branches in the Devon seaside town of Torquay and the East Yorkshire city of Hull.
The Post Office operates 11,684 branches nationwide | GETTY
Scottish customers in Ayr will lose their local counter
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POST OFFICEScottish customers in Ayr will lose their local counter, while Middleton in Greater Manchester and Solihull in the West Midlands complete the list of confirmed Post Office closures.
Should any TG Jones shop housing a postal counter shut its doors, the state-owned service would need to secure an alternative premises nearby or withdraw entirely from that area.
Modella is reportedly exploring options to relocate affected counters to other businesses in its portfolio, including the Hobbycraft chain.
The Communications Workers Union condemned the proposals, with executive council member Mole Meade warning that affected areas would “become postal deserts in a modern world.”
The union has long expressed concerns about the privatisation of essential services, with Meade stating: “We have been warning governments of all colours for nearly 35 years that outsourcing important social services like the Post Office to companies will put shareholders before communities we serve. All they will do is end up closing down community and crown post offices.”
When Modella completed its takeover of the high street business, the CWU demanded “cast-iron guarantees” protecting workers’ terms and conditions, voicing fears the private equity firm could be “carpet baggers looking to asset strip it.”
A Post Office spokesperson acknowledged the difficult trading environment, describing the closures as “regrettable” while confirming efforts to identify nearby alternative locations for affected services.
“We have a longstanding partnership with TG Jones and we know that post offices drive significant footfall to the high street,” the spokesperson added.
These modified notice periods and compensation terms would remain in effect throughout the three-year restructuring period until June 2029
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GETTYModella defended its approach, stating the restructuring was “designed to protect the substantial core of the store estate and create a stronger, more sustainable business that can continue to serve customers for years to come.”
Under the proposed compensation arrangements, the Post Office would receive a payment worth 170 per cent of estimated profits from each closure, with a minimum floor of £500.
These modified notice periods and compensation terms would remain in effect throughout the three-year restructuring period until June 2029.