Tesco is eyeing Crown Post Office branches in a potential deal

According to reports from Sky News, Post Office chairman Nigel Railton disclosed to MPs this week that the grocer had expressed interest in acquiring the locations which are currenty under direct management. 

During discussions, Railton reportedly suggested to MPs that Tesco could be one of a select few potential buyers interested in taking over all 108 sites.

The Crown Post Office network employs approximately 1,000 staff members, and many of these positions would likely be protected if a single retail company takes over the entire network.

Over 20 MPs attended the meeting with Railton to discuss what lies ahead for the directly managed locations, which represent a small fraction of the overall Post Office network. Labour unions have voiced their apprehension about the company’s proposed changes.

Tesco refused to comment on the story, while a Post Office spokesperson said: “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 for us, into March before updating our colleagues who work in these branches on any potential next steps.”