250 jobs go at Portman

The landmark building on the ring road will be closed this year. The group, which swallowed up the Staffordshire Building Society in 2003, has also announced plans to close branches in Dudley, Brierley Hill and Stourbridge.

They will be moving to neighbouring branches of the Nationwide as part of a merger deal.

In Wolverhampton, Kidderminster and Cannock both building society branches in the towns will be closed and replaced by newer bigger branches.

Bournemouth-based Portman has blamed the expense of renovating and repairing the 30-year-old Wolverhampton office block for its closure.

Originally called Jubilee House, after its opening in the Queen's Silver Jubilee year 1977. It was the headquarters of the Staffordshire Building Society but after the merger with Portman it became a regional administration office and base of the Portman Direct internet and phone operation.

Robert Sharpe, chief executive of Portman, said today: "The cost of refurbishing it would be around £8 million. It is very sad because the staff are a fantastic bunch of people, but there is no need for a Portman Direct operation to exist as it will all transfer to Nationwide Direct.

"Because of the quality of the people in Wolverhampton, Nationwide spent an awful lot of time to see if we could do anything else out of the offices but that option was ruled out. It will be sold in due course."

Portman also said today it had drawn up a hit list of 108 sites around the country where both societies have branches.

The building society said today it would create more jobs in Bournemouth over the coming months and will encourage Wolverhampton staff to apply for those jobs, offering relocation assistance.