The network is currently losing Consignia 拢3m a week, but this could rise next April after the government phases out the payment of benefits through post offices. Consignia estimates that this could reduce revenues by as much as 拢400m a year.
Since 2000, Consignia has closed over 550 rural post offices, generating criticism that it is hurting villages and small towns.
In June, the company said it had posted a lost of 拢1.1bn for the year. It has brought in former Asda boss Allan Leighton as chairman as it seeks to turn its fortunes around -- especially with competition in the UK postal market opening up.
Consignia again becomes the Royal Mail Group this week, after a 拢2m rebranding two years ago that was widely ridiculed in the media.
However, the company claims the return to the Royal Mail name is not because the rebranding was a failure. According to the Consignia website: "The decision to change the name to Royal Mail Group is just one example of the ways this business is refocusing on delivering a better business for our people and better service for our customers, whilst aiming to get back in to profit."
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