London — The relentless drive for profit by private equity firm Modella is endangering crucial Post Office services, threatening to create “postal deserts” across the UK. Modella, which acquired WH Smith's high street business last year and rebranded it as TG Jones, is attempting to strong-arm the Post Office into accepting contract changes that would allow for the rapid closure of Post Office counters within its stores.

This restructuring plan, driven by Modella's desire to slash rents and maximize returns, could result in the closure of up to 60 Post Office locations currently operating within TG Jones stores. Landlords, faced with unsustainable rent cuts, are likely to terminate leases, leading to widespread store closures and job losses. The human cost of this corporate maneuvering will be borne by vulnerable communities and dedicated postal workers.

Under Modella's proposed changes, the notice period for closing Post Office outlets would be slashed from six months to a mere 56 days. This drastically reduced timeframe would leave the Post Office scrambling to find alternative locations, potentially leaving communities without access to essential postal and banking services. This is a clear example of profit being prioritized over the needs of the public.

Already, eight stores are slated for closure, seven of which house Post Office counters. These closures will disproportionately impact communities in East Ham, Waltham Cross, Torquay, Hull, Ayr, Middleton, and Solihull, exacerbating existing inequalities and further marginalizing those who rely on these services the most.

The Communications Workers Union (CWU) has rightly condemned Modella's actions, warning of the creation of “postal deserts.” The CWU has long cautioned against the dangers of outsourcing essential public services to private companies driven by profit motives. Their concerns have been validated by Modella's actions.

Adding insult to injury, Modella is also attempting to waive compensation rights for stores affected by the restructuring. Instead, the Post Office would receive a paltry payment equivalent to 170% of the estimated profits derived from the closure of a site, with a minimum payment of just £500. This is a blatant attempt to minimize costs and maximize profits at the expense of the public good.

Modella's defense of its actions, citing weak consumer spending and rising operating costs, rings hollow. The company's pursuit of short-term profits will have long-term consequences for communities and workers. The forced name change from WH Smith, while cited as a negative factor, is ultimately a distraction from the core issue: Modella's exploitative business practices.