240 post offices face the axe

ROYAL Mail may close or sell almost half its High Street post offices to help it cut huge losses, it has emerged. Bosses have told unions that between only 320 and 390 of the 560 main post offices in Britain are sustainable.

That means the company will have to close up to 240 'Crown' post offices or sell them to franchise holders.

Such a move would leave hundreds of thousands of people without easy access to postal services, passport applications, pension and benefits payments, car tax and a host of other services.

The drastic action has come as the group struggles to turn round a £70m loss made by High Street post offices last year.

A year ago Royal Mail announced plans to close 3,000 of the 9,000 urban sub-offices by March next year. Rural post offices have also been decimated by widespread closures in the last few years.

A Royal Mail spokesman refused to say how many main post offices would be affected but confirmed that closures were being considered. An announcment would be made in the next few weeks.

He said: 'We've never hidden the fact that they made a £70m loss last year. We cannot sustain that amount.

'We've reached no decision on the future of the 560 main post offices. It is a bit premature to talk about numbers yet. But something is going to have to be done. A decision is going to be made very shortly.'

Andy Furey, of the Communications Workers Union, said Royal Mail had told him only 320 to 390 post offices were viable. He said it was not known what would happen to the remaining branches but most would either be closed or sold. The union is worried that standards of service could fall at the branches that are sold.

'This is a complete travesty,' he said. 'The Royal Mail has has one of the biggest networks of retail outlets with the most incredible potential and now they are closing them or selling them off. It's absurd. It's a terrible waste of a national asset.'

Unions have accused Royal Mail of asset-stripping because it is selling sites which have very good redevelopment potential.

Managers have yet to identify which post offices would have to close. Among those being looked at are Trafalgar Square, Spring Gardens in Manchester and Bank Street in Bradford. All are popular with customers but have high overheads.

The main post office in George Square, Glasgow, has already closed, to be sold off for redevelopment as a luxury hotel.

Like those in rural areas, where villagers across the country have mounted numerous campaigns, any closures are likely to run into major opposition.

Customers of the Bank Street post office in Bradford have already started a petition saying they are appalled by the possibility of closure.

Royal Mail will face questions about the future of Crown offices this month from MPs on the parliamentary Trade and Industry Select Committee.

The Department of Trade and Industry said it was a matter for the Royal Mail's Post Office Ltd subsidiary.

A spokesman said: 'Decisions on the future of Crown offices, after public consultation, are an operational and commercial matter for Post Office Ltd. The Government does not have a role and does not intervene.'

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