Fears for Post Office jobs amid WH Smith successor’s plans

The Guardian has reported that as many as 60 Post Offices within TG Jones stores could be closed if plans from the high street chain’s owner, Modella Capital, go through.

Responding to the claims, a TG Jones spokesperson said it is making the business fit for the future and that some stores may be closed and jobs lost.

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The successor brand to WH Smith operates around 180 post offices, with Modella’s proposals to slash rents on its outlets expected to see landlords recall the leases and cause many of its approximately 480 stores to close.

The Guardian added that the private equity firm is looking to amend contracts with Post Offices so they can be closed in just 56 days when leases end, a much-reduced waiting period than is currently set.

These proposals are set to be voted on next month.

TGJones in Cornmarket Street, Oxford (Image: Google)

TG Jones has a number of Oxfordshire-based premises, including in Oxford, Didcot, Wantage, Abingdon, Witney and Chipping Norton.

The Oxford based store in Cornmarket Street is one that has been earmarked as ‘at risk’ according to Retail Gazette as well as shops in Swindon, Chippenham, Hampshire and North Wales.

If a store containing a Post Office were to close, then that would mean the service would be forced to try to find another local site or shut down in that area all together.

Modella has been clear on the challenges TG Jones is facing, citing weak consumer spending, cost-of-living pressures, rising operating costs and its name change as reasons for its struggles.

TG Jones in Chippenham (Image: Newsquest)

The spokesperson added: “The Restructuring Plan is 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.

“We are extremely grateful to the many stakeholders who have pledged their support, including the Post Office and Toys R Us.

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“The survival of this iconic 234-year-old business is our imperative.

“No decisions have yet been taken on how this will impact roles, but we will aim to preserve as many jobs as possible.

“Any potential store closures or role reductions will be subject to appropriate consultation, and we are committed to engaging openly and constructively with colleagues and their representatives.”

The business has since stated that failure to gain approval for the restructuring would face it being put into administration if the plan is not in place by July 31.