Post Office to promote all 108 directly-owned branches – is yours on the record?
- It says it will offload the branches to franchisees
The Post Office is flogging 108 crown branches which are currently directly owned and run by the company.
It will hand over the 108 remaining directly-owned branches to franchisees by the autumn.
Around 1,000 staff working in these branches will be offered a choice to move to work for any new owner or take voluntary redundancy, the Post Office said.
Post Office chairman Nigel Railton said the 108 branches will either stay in the same location or be relocated nearby so customers continue to have access to the services.
He said moving to a fully franchised network was one element of enabling the Post Office to deliver a new deal for postmasters.
Railton said on Wednesday: ‘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 per cent.’

Sell-off: The Post Office will hand over 108 directly-owned branches to franchisees
Reports suggest the Post Office has received interest from potential retail partners including Tesco and Ryman, as well as sub-postmasters, to take on the loss-making branches.
The Communication Workers Union called for the government to intervene and help examine alternative options.
CWU general secretary Dave Ward said: ‘The Post Office’s claim that these community services will be maintained by their failed franchising model is laughable to anyone who has seen their local Post Office services reduced to the back of a shop.
‘The sell-off of WH Smith last week shows just how fragile and ill-thought out this model is.
‘This is the full privatisation of the Post Office via the back door.’
Railton said: ‘Over the coming months, we will continue to work with our unions to ensure that we treat our staff working in these 108 branches with care and respect through this transition, consulting with them on proposed changes.
‘The 108 Post Offices will either stay in the same location where possible or be located close to the existing location, meaning customers will continue to have access to a full suite of products and services.’
The Post Office said it ‘remains committed’ to meeting the current requirement to have a minimum of 11,500 branches across the UK and to meet the six ‘access criteria’ set by the government.
It said it would work with franchise partners ‘with a clear track record of successfully running Post Office services or similar customer-focused retail to ensure communities in these 108 locations will continue to receive a high quality of service once their Directly Managed branch is franchised.’
In November, the Post Office announced that the future of its directly managed branch network was under review.
On Thursday, it said directly managed branches generated a loss of over £40million each year.
The Post Office faces numerous challenges, including competition from rival parcel operators and fewer people sending letters, with revenues for its branches being hit as a result.
The Post Office’s strategic shake-up, bosses claim, aims to put the business on a firmer financial footing, but it comes as the long-running inquiry into the Horizon IT scandal heads into its final stages.
Between 1999 and 2015, hundreds of sub-postmasters were wrongly prosecuted after faulty computer software made it appear as though money was missing from their accounts.
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