More than 100 Post Office branches across the UK are at risk of closing down as dozens of jobs could be slashed, it has been claimed.
The Post Office is reportedly looking at options including alternative franchise arrangements, where third parties could take on branches.
It could mean that 115 loss-making branches that are owned by the Post Office wholly could be shut down, the BBC reports.
It comes after post Office sub-postmasters are still reporting unexplained problems with the flawed Horizon IT system, research has revealed.
Post Office chairman Nigel Railton is said to have scheduled a meeting with postmasters and Post Office staff at 9am tomorrow morning to detail his plans.
More than 100 Post Office branches across the UK are said to be at risk of closing down (stock image)
The Post Office is reportedly looking at options including alternative franchise arrangements (stock image)
The Sun has also claimed that the Post Office is switching to a franchise model.
The troubled organisation is currently in the midst of a long-running inquiry into the Horizon IT scandal, where hundreds of sub-postmasters were wrongly prosecuted after faulty software made it appear money was missing from their accounts.
Despite this, in September it was revealed that the Post Office had handled a record amount of cash as customers continue to flock to its branches following the closure of thousands of Britain’s high street banks.
Customers have been forced to use the Post Office in many cases because it is the only option available to them after 6,000 bank branches shut their doors since 2015.
The rate of closure has been around 50 branches a month, and it shows no sign of slowing down as customers continue to gravitate to online banking.
However a sizeable portion of the population continues to need access to brick and mortar banking, causing them to use the Post Offices basic cash handling services.
It is said that 115 loss-making branches that are owned by the Post Office wholly could be shut down (stock image)
Post Office sub-postmasters are still reporting unexplained problems with the flawed Horizon IT system, research has revealed
The wrongful prosecution of more than 900 people was the biggest miscarriage of justice in British legal history (pictured: Alan Bates, former sub-postmaster and founder of Justice for Subpostmasters Alliance leaving Portcullis House in London)
In July customers deposited or withdrew more than £3.7bn, which beats previous record highs set in May, April and December.
Regarding the potential closures, a Post Office spokesperson told the BBC that the organisation would be setting out a ‘new deal’ for postmasters and for ‘the future of the Post Office as an organisation’.
‘It will dramatically increase postmasters’ share of revenues, strengthen our branch network and make it work better for local communities, independent postmasters and our partners who own and operate branches,’ the spokesperson added.
MailOnline has contacted the Post Office for comment.