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Waterstone's concession in Harrods is to close, with the last day of trading understood to be 17th September.
Around 25 members of staff currently work at the store. Waterstone's is currently in talks with staff and a spokesperson said it would find positions for those who wished to stay with the company.
The space will be taken by W H Smith, with Waterstone's to be completely out of Harrods by 27th September.
Waterstone's has been trading in the central London retail institution for around 20 years.