Tesco mulls takeover of Crown Post Office branches
It comes as the directly managed branches have come under review amid reports the state-owned company is looking to shift to a franchise model
Tesco is reportedly eyeing a potential takeover of more than 100 Crown Post Office branches across the UK, in a move that could save the branches from potential closure. It comes as the directly managed branches have come under review amid reports the state-owned company is looking to shift to a franchise model.
According to Sky News, Post Office chairman Nigel Railton reportedly told a group of more than 20 MPs this week that Tesco had informed the company of its potential interest in acquiring the sites.
One MP who was in attendance told Sky that Railton had given the impression that Tesco was among a small number of potential buyers for the branches.
A wider strategic review launched by Railton last autumn has called into question the future of the 108-strong Crown Post Office network. The review is designed to bolster sub-postmasters’ pay “substantially”, and comes amid ongoing controversy over the Horizon IT scandal.
The branches employ around 1,000 people, with many of those jobs likely to be safeguarded in the event of an acquisition of the whole network by a single retailer, according to Sky.
A Post Office spokesperson told Retail Sector: “We are fully committed to engaging openly and transparently with MPs regarding any potential plans related to our Directly Managed Branch (DMB) network. Since inviting expressions of interest for 108 Post Offices that we currently operate, we have received interest from retail partners and independent postmasters in the hundreds.
“We remain committed to engaging with our trade unions over the potential future ownership of our Directly Managed Branches, which are loss-making, before updating our colleagues who work in these branches on any potential next steps.”
Tesco has also been contacted for further comment.
