Marks & Spencer is scrapping all M&S Bank customers’ current account and closing all in-store branches as it dramatically scales back its financial arm.
M&S, which launched its banking service in 1985 and has been running it as a joint partnership with HSBC since 2004, has informed all its customers that their current accounts will soon be closed.
The embattled high street giant also announced that it will close all 29 in-store M&S Bank branches this summer, The Telegraph reported.
While M&S says its plans to keep all of its in-store travel money desks open, its banking arm will now focus largely on credit cards and store rewards, having scrapped new home loans last March.
It comes amid an indepth overhaul of M&S wider operations, as it looks to cut costs and transition to a more digital model in the wake of waning sales, even before the pandemic.
Last month M&S chief executive Steve Rowe warned that he would be forced to let thousands more staff go if the government did not reform the UK’s business rates system.
Speaking to the Daily Mail, he said “seismic upheaval” caused by the Covid-19 pandemic would lead to doom and gloom on the high street unless the “unbearable yoke” of business rates undergoes a “fundamental review”.