Is Closure Threat The End Of Royal Mail?

ROYAL Mail was on the brink of collapse last night as bosses threatened administration amid record losses.

- Giles Sheldrick

The company - shedding £1million a day - said if a deal could not be struck with striking unions its duty to deliver to every address in Britain was in peril.

Royal Mail blames the impact of strikes by postmen and women and the continuing decline of its core business for the need to make swingeing cuts. It expects to report an annual operating loss of £350million-plus in days.

The Communication Workers Union, which represents 115,000 postal workers, is poised to announce multiple strike dates next month which could cause huge disruption over Easter.

A formal announcement is expected this week. It said: "It is clear Royal Mail Group is in a serious financial situation. This is as a direct result of mismanagement and recklessness at the most senior level of the company."