Major update on future of 108 Post Offices as some face closure

[TrueBlueTerrier]

https://www.birminghammail.co.uk/news/m ... t-31377078

The company will switch the big city branches, sometimes called "Crown Post Offices" to a franchise model.

A major update has been issued over 108 Post Offices as some face closure with a former BBC Dragons’ Den businessman in the running to take over. The company will switch the big city branches, sometimes called "Crown Post Offices" to a franchise model.

It hopes to strike a deal with new owners by the end of September. The 108 branches are currently losing £40million a year, despite only accounting for 1% of the business.

However, the Post Office said that the franchise plan will mean towns "that currently have a Directly Managed Branch in their area will continue to be able to access Post Office services".

Nigel Railton, Post Office chairman, said that the £40million of savings will be funnelled into increasing postmasters' pay by 10% as promised last November.

Mr Railton said: "Moving to a fully franchised network is one part of enabling the Post Office to deliver a 'New Deal for Postmasters', helping to create a long-term, sustainable future for the Post Office.

"By franchising these branches, we are protecting access to our services for communities right across the UK and realising £40million worth of savings that will enable us to uplift postmasters' remuneration by up to 10%."

The Post Office plans to hand over its remaining directly-owned branches to franchisees by the autumn. It confirmed that it is offloading 108 crown branches which are currently directly owned and run by the company.

The process could see the sites taken over by other businesses, while others could face closure as franchises are moved to different premises. The Communication Workers Union (CWU) had previously condemned the potential closure of these sites as "tone deaf as it is immoral."

Last October, Conservative shadow business secretary Kevin Hollinrake proposed that the entire Post Office could be transformed into a mutual organisation similar to John Lewis, where customers or shareholders hold the majority of shares.

A representative from the Post Office told Sky News: "We are fully committed to engaging openly and transparently with MPs regarding any potential plans related to our Directly Managed Branch (DMB) network.

"Since inviting expressions of interest for 108 Post Offices that we currently operate, we have received interest from retail partners and independent postmasters in the hundreds.

"We remain committed to engaging with our trade unions over the potential future ownership of our Directly Managed Branches, which are loss-making for us, into March before updating our colleagues who work in these branches on any potential next steps."