A Newcastle licensed post office that fought to keep its doors open has entered liquidation, as Australia Post champions reforms it says will make its services more efficient and financially sustainable.
TNT Family Pty Ltd, which traded as Lambton Post Office and Lambton Nextra Newsagency, entered liquidation on Friday, according to the Australian Securities and Investments Commission (ASIC).
The business’ closure caps off a campaign from owner-operator Trish Firth, who argued the licensed post office (LPO) should remain operational after Australia Post decided not to renew its fixed-term contract.
Firth said Australia Post’s decision, which came earlier this year, came as a surprise to herself and customers of the Elder Street facility.
To show the business case for continued LPO services in the district, Firth and supporters led a petition that gained 4,000 signatures.
In February, that petition was championed in Federal Parliament by Member for Newcastle, Sharon Claydon MP.
But efforts to extend its operations did not succeed, with Lambton Post Office formally announcing plans to close late last month.
“While we must bid farewell, please know that this decision comes not from any fault of our own,” the business told customers on Facebook.
“Circumstances beyond our control have led us to this point.
“However, our memories of serving our community will always hold a special place in our hearts.”
The saga is one of the highest-profile examples of community opposition to LPO closures, which Australia Post itself argues are necessary to effectively meet the needs of today’s postal customers.
While the end of everyday letter delivery has dominated headlines, Australia Post is also pursuing the closure of excess LPOs to curtail what it sees as the costly oversupply of postal services.
There are currently 4,271 Australia Post outlets, of which roughly 2,900 are LPOs, which operate in conjunction with small businesses like news agencies and convenience stores.
“The number of post offices in our major cities is not sustainable or sensible,” Australia Post CEO Paul Graham told a Senate estimates hearing in October last year, arguing the modern appetite for postal services has changed.
The New Lambton LPO, which is some 1.7 kilometres from the shuttered Lambton LPO, remains open.
Addressing the Australian Financial Reviewin March, Graham said the sunsetting of outlets like Lambton was appropriate.
“Neighbourhoods get upset when things change [but] it is not sustainable,” he told the paper.
“It’s the smart thing to do business-wise, but it is not an easy task.”
As Australia Post reshapes its network, some industry representatives are concerned about the future of its small business operators.
The LPO Group, which represents the community post office network, used a submission to the Postal Services Modernisation Inquiry to argue a “sensible reduction” makes sense in areas “where there is ample evidence of outlet over-servicing.”
However, LPO Group is worried their potential replacement by unmanned parcel locker services might miss community needs.
“There is no solution to rescue these small business operators from this appalling prospect other than their replacement with a parcel locker installation,” it said.
“Putting aside the personal tragedy befalling these Licensees, where is the plan to continue servicing their communities when their Post Office closes?”
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Senior Business Journalist
Focused on the small business sector, David’s work covers the political, regulatory, and economic issues facing Australian entrepreneurs. Prior to joining SmartCompany, he was a reporter for Business Insider Australia. You can follow him on LinkedIn.
