The Nottingham building society has announced plans to close 17 branches by the end of the year.
The mutual – which made a pre-tax profit of £11.3 million in the first half of 2022, up from £5.7 million a year earlier – said it reacting after the branches had seen a drop in use as more and more people did their banking at home.
Management are talking to staff working in the affected branches about relocating them if possible or offering “enhanced” redundancy pay which could see those leaving the business paid “well into the first quarter” of 2023 and longer in some cases. The building society has been asked to say how many jobs are at risk. It is known that 18 roles are affected across Leicestershire.
The affected branches cover much of central England and following the closures, which will leave 31 branches open across seven counties.
Kathryn Kitson, head of The Nottinghan’s branch network said: “Following a thorough review of how our members are using our network, it became clear that we have too many branches for the size of building society that we are.
“Since Covid, whilst some members have returned, many have not, leaving a number of our branches with very low levels of transactions and usage.
“Therefore, we’ve made the hugely difficult decision to close 17 branches in locations where the level of activity in the branch has reached a point where it is no longer sustainable.
“We appreciate this is disappointing news for both the members who use one of the affected branches, and our colleagues who work there.
“However, we have been thorough and considered when making decisions on which branches to close, trying to ensure there are options in place for more vulnerable members and also taking into account the impact on the communities our branches serve.
“The decision to close branches is never one that is taken lightly so our absolute priority is doing all we can to provide the best possible support for all those impacted by these changes.”
In a statement the mutual added: “As well as the pro-active outreach programme to support members, The Nottingham will also be focused on doing the right thing by colleagues over the coming weeks.
“In addition to a redeployment programme offering impacted team members suitable roles elsewhere across the branch network or in the wider business, enhanced redundancy pay will be offered to those leaving the business that will see them paid well into the first quarter of 2023 and longer in some cases.”
The statement said the society was talking to customers impacted by the closures about alternative ways of managing their money.
It said: “Although many branches have an alternative branch close-by allowing members to manage their savings, there are some instances where this is not possible, and the society has committed to working with these customers to try and find alternative support, including other suitable savings options elsewhere.”
