Communities will become postal deserts in a modern world
A private equity firm's restructuring of a beloved British high street retailer has placed the quiet infrastructure of daily civic life — the Post Office counter — under sudden threat. Modella, which acquired WH Smith's high street stores and rebranded them as TG Jones, now seeks to accelerate the closure of up to 60 postal outlets by dramatically shortening notice periods, leaving communities — particularly those already underserved — to reckon with the slow erosion of essential services. This is not merely a commercial reorganisation; it is a test of whether the social contract embedded in public-facing institutions can survive the logic of private capital.
- Modella wants to cut closure notice periods from six months to just 56 days, giving communities almost no time to find alternatives before postal services disappear.
- Up to 150 TG Jones stores may shut entirely as landlords reject proposed rent cuts, putting thousands of jobs at risk and stripping seven confirmed Post Office locations from the map.
- The Post Office's standard compensation protections have been quietly waived — replaced by a minimum payout of just £500 per closed site, locking in these reduced terms until 2029.
- The Communications Workers Union warns that affected areas will become 'postal deserts,' echoing decades of concern that privatising social infrastructure ultimately abandons the most vulnerable.
- The Post Office has endorsed the plan while scrambling to rehouse displaced counters in other Modella-owned businesses, but there is no guarantee alternative locations can be found in time.
Modella, the private equity firm that rebranded WH Smith's high street stores as TG Jones last year, is seeking to rewrite its contracts with the Post Office in ways that could accelerate the closure of up to 60 postal counters across Britain. Under the proposed terms, outlets could shut with just 56 days' notice — a fraction of the current six-month requirement — as the company restructures to survive weak consumer spending and rising costs.
The restructuring hinges on rent reductions across dozens of TG Jones locations. Landlords unwilling to accept lower payments are expected to recall their leases, potentially closing up to 150 of the company's 450 stores and putting thousands of jobs at risk. Eight stores are already confirmed for closure, seven of which contain Post Office counters, in locations ranging from East Ham and Torquay to Hull and Ayr.
For the communities affected, the stakes extend well beyond retail. Post Office counters serve as access points for banking, parcel services, and everyday transactions that have no easy digital substitute for many residents. When a counter closes without a replacement nearby, the result is not inconvenience but genuine exclusion.
The financial terms negotiated by Modella compound the concern. Standard compensation rights have been waived, replaced by a flat payment of 170 percent of estimated profits per closure — with a minimum of just £500 per site — a arrangement that holds until June 2029.
The Communications Workers Union has been forthright in its alarm, warning of 'postal deserts' and noting that its fears about Modella's intentions, voiced when the firm took over, now appear well-founded. The Post Office, for its part, has endorsed the plan while exploring whether displaced counters might be rehoused in other Modella-owned businesses such as Hobbycraft. Creditors vote next month, and if the plan passes, the first closures could follow within weeks.
Modella, the private equity firm that acquired WH Smith's high street business and rebranded it as TG Jones last year, is moving to reshape its relationship with the Post Office in ways that could hollow out postal services across Britain. The company has written to creditors proposing to amend contracts governing the 180 Post Office counters operating inside TG Jones stores, making it far simpler to shut them down. Under the new terms, outlets could close with just 56 days' notice—less than a third of the current six-month requirement. As many as 60 of those 180 counters could disappear if creditors approve the restructuring plan they are set to vote on next month.
The broader context is a retailer in distress. Modella's restructuring plan involves slashing rents across dozens of TG Jones locations. Landlords, unwilling to accept the cuts, are expected to recall their leases. The result: up to 150 of the company's 450 stores could close entirely, putting thousands of jobs at risk. Eight stores have already been marked for definite closure, seven of which house Post Office counters. Those seven are scattered across the country—East Ham and Waltham Cross in London, Torquay in Devon, Hull, Ayr, Middleton in Greater Manchester, and Solihull in the West Midlands.
What makes this arrangement particularly troubling is what happens when a TG Jones store closes and takes its Post Office counter with it. The postal service doesn't simply vanish; it has to scramble to find another nearby location or, failing that, abandon the area entirely. For communities already struggling with retail decline, the loss of a Post Office is not a minor inconvenience. It is the loss of a place to buy stamps, send parcels, access banking services, and conduct other transactions that have no obvious digital alternative for those without reliable internet or the confidence to use it.
Modella has also negotiated away most of the Post Office's usual protections. Compensation rights that would normally apply have been waived. Instead, the Post Office will receive a flat payment equivalent to 170 percent of estimated profits from each closure—with a floor of just £500 per site. This arrangement holds for three years, until June 2029, after which standard terms revert. The company has framed the restructuring as necessary medicine. In a statement last week, Modella said the 234-year-old business faced weak consumer spending, rising operating costs, and damage from the forced name change from WH Smith, which it said hurt trade.
The Communications Workers Union, which represents postal workers, has been unsparing in its criticism. Mole Meade, a member of the CWU executive council, said communities affected by these closures would "become postal deserts in a modern world." The union has spent nearly 35 years warning successive governments that outsourcing social services to private companies prioritizes shareholders over communities. When Modella took over last year, the CWU demanded "cast-iron guarantees" that worker protections would hold, fearing the firm might prove to be what it called "carpet baggers looking to asset strip it." Those fears now look prescient.
The Post Office itself has given its blessing to the plan, saying it is working to find alternative locations for displaced counters and that it recognizes the difficult trading conditions retailers face. The organization is also understood to be exploring whether it can rehouse Post Offices in other businesses Modella owns, such as Hobbycraft. This partnership stance is notable given the Post Office's own recent history: the organization is still recovering from the Horizon IT scandal, and it announced the closure of more than 100 branches in late 2024. Creditors will vote on Modella's restructuring plan next month. If approved, the first closures could begin within weeks.
Citações Notáveis
Communities served by Post Offices that would close under TG Jones's plans would become postal deserts in a modern world.— Mole Meade, Communications Workers Union executive council member
We are working hard to find locations nearby to continue offering Post Office services.— Post Office spokesperson
A Conversa do Hearth Outra perspectiva sobre a história
Why does the notice period matter so much? Fifty-six days versus six months—is that really the difference between a community keeping its Post Office and losing it?
It's the difference between having time to plan and having almost no time at all. Six months gives the Post Office, local councils, and community groups a chance to organize, to find alternative locations, to make noise if they need to. Fifty-six days is barely enough time to notify people. It's a mechanism designed to move fast and avoid friction.
And Modella gets what out of this? Why push for faster closures?
Speed means less liability, less negotiation, less public pressure. If you can close a store and its Post Office counter in two months, you're past the point where anyone can effectively organize resistance. It's about control and momentum.
The Post Office says it's working to find alternative locations. Should we believe that?
The Post Office is in a weak position. It's already closing branches, it's recovering from a massive scandal, and it needs retail partners. Modella is offering to house Post Offices in Hobbycraft stores instead. But Hobbycraft isn't on every high street. For some communities, there may be no alternative at all.
What does "postal desert" actually mean in practice?
It means an elderly person can't walk to their Post Office to collect their pension or send a parcel. It means a small business can't access postal banking services. It means the infrastructure of everyday life gets thinner. And it happens quietly, store by store, until you realize there's nowhere left to go.
Is there any way to stop this?
Creditors vote next month. If enough of them vote no, the plan fails. But Modella controls the narrative—it's framing this as necessary survival. The union is fighting it, but they have limited leverage. Once the vote passes, the closures will likely follow.