Harrods reports £ 68million loss as restaurant staff vote on strike action

Luxury department store Harrods reported a loss of £ 68million for the 52-week period ending January 30, 2021.

According to its latest set of accounts published on Companies House, it comes after its gross transaction value fell 51% to £ 1.09bn and its revenue also fell 50% to £ 429m. pounds sterling compared to £ 870 million the previous year.

He attributed the loss to the impact of Covid-19 with the pandemic closures and a sharp reduction in the number of international travelers visiting the department store.

He also revealed that his costs had increased by £ 500million due to an increase in the administration of imports and taxes.

However, despite the impact of the pandemic, the company said growth remained “strong” and its cash reserves also remained healthy. He also extended the terms of a £ 620million loan and a £ 200million credit facility due to be repaid in April next year for 18 months.

The news comes after it was revealed that the department store could be on strike by a number of its restaurant workers. United Voices of the World, a campaigning union run by its members, confirmed on Twitter that it had written to the bosses of the luxury department store to inform them that a dispute had started which could lead to a Christmas strike.

He told the Guardian he was voting members over a Christmas week strike after calling for wages to be raised to a minimum of £ 12 per hour, from just over £ 9 per hour. time at the moment.

A spokesperson for Harrods told the newspaper: “Along with the hospitality industry as a whole, Harrods has faced an extremely difficult 18 months, with long shutdowns that have completely suppressed our ability to function normally. However, throughout this our top priority has been the well-being of our staff and the safeguarding of as many jobs as possible.

“We are constantly reviewing our compensation policies to ensure they are in line with industry best practices and along with base salary, Harrods employees receive generous overtime, 100% service fees ( less minor administration costs) and fringe benefits. “

Harrods has been contacted for comment.

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