Harrods mulls the disposal of its banking unit as it meets with prospective advisers

Courtney Goldsmith
Follow Courtney
Harrods Summer Sale
Harrods Bank was established more than 120 years ago (Source: Getty)

Harrods Group is mulling ditching its loss-making banking unit, according to reports.

The famous department store is interviewing potential advisers about handling a disposal of its banking unit, according to Sky News' Mark Kleinman. The bank made pre-tax losses of more than £13m over its last two financial years.

The appointment of advisers will lead to a review of options, one being selling the business, sources said.

Harrods declined to comment on the reports.

Read more: Harrods posts a profit despite tough trading conditions

Harrods Bank's value will be tricky to calculate because of its losses and uncertainty over whether the group's Qatari owners would allow the store's brand name to be licensed to a new owner.

The bank, which provides savings accounts and mortgages as well as first-of-its-kind gold bullion services, was established in 1893.

Related articles