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Business
May 15, 2026
Analyzed by GPT OSS 120B

Fears of ‘postal deserts’ as TG Jones plans mass Post Office closures

AI Summary
TG Jones, now owned by private‑equity group Modella, is seeking to amend Post Office contracts to allow rapid closures of up to 60 counters, sparking concerns about emerging “postal deserts” on the UK high street. The proposal, which would cut notice periods to 56 days and reduce compensation, must be approved by creditors next month.

Executive Summary: Threat of Post Office Closures in Former WH Smith Stores

The owner of the former WH Smith high‑street chain, TG Jones, is pushing a restructuring plan that would let the Post Office shut up to 60 counters inside its stores with just 56 days’ notice. Critics warn the move could create “postal deserts” and jeopardise thousands of jobs.

Modella’s Restructuring Plan Targets Up to 60 Post Office Contracts

After acquiring the WH Smith business last year, private‑equity firm Modella has written to creditors proposing to amend existing Post Office contracts. The amendment would allow outlets that lose their leases to be closed with a 56‑day notice—less than a third of the current six‑month period—if the plan is approved. Eight stores are already slated for closure, seven of which house Post Offices, in locations such as East Ham, Waltham Cross, Torquay, Hull, Ayr, Middleton and Solihull.

Numbers Behind the Plan: Store Count, Potential Closures and Compensation

  • 180 Post Offices are currently operated by TG Jones.
  • Modella estimates that as many as 60 of these could be closed under the restructuring.
  • Up to 150 of the 450 TG Jones stores could be shut, putting thousands of jobs at risk.
  • Compensation for lost Post Office sites would be set at 170 % of estimated profits from the closure, with a minimum payment of £500.
  • The reduced notice period and compensation terms would apply for the three‑year plan, running to June 2029.

Community Impact: Rise of Postal Deserts Across the UK High Street

The proposed closures would strip many neighbourhoods of essential services—stamps, banking and parcel handling—forcing customers to travel farther for basic postal functions. The Communications Workers Union (CWU) has condemned the plan, warning that affected communities would become “postal deserts in a modern world”. The Post Office itself acknowledges the risk to footfall, noting that its branches drive significant traffic to high‑street retailers.

What Comes Next: Creditors’ Vote, Potential Regulatory Response and Long‑Term Outlook

Creditors are scheduled to vote on Modella’s restructuring plan next month. If approved, the 56‑day notice clause will be activated, and TG Jones will seek to re‑house displaced Post Office counters in other owned businesses, such as the Hobbycraft chain. Stakeholders—including the Post Office, landlords and trade unions—are expected to monitor the outcome closely, with possible regulatory scrutiny over the reduction of service obligations on high‑street retail spaces.