Harrods is planning to transform the basement space currently occupied by its fine wine department into a late-night restaurant.

The luxury Knightsbridge store opened its basement drinks department in 2013 with 2,000 wines, 200 champagnes and 500 spirits on offer.

But now it is seeking planning permission to transform the 7,000sq ft space in to a 225-cover restaurant, bar and lounge area.

All nine of Harrods’ existing restaurants and cafes close by 9pm, but the store is requesting an extension to allow the proposed site to offer a full dinner service outside of retail trading hours.

Under the plans the restaurant will stay open until 12am Monday to Friday and 11.30pm on Sundays and Bank Holidays.

It will also offer a fourth floor smoking area, where guests will be escorted from the basement dining area by a host.

A report by the project’s architects Woods Hardwick said the plans would provide a ‘highly desirable restaurant destination within an already iconic building’.

“The aspiration of the Basement Restaurant is to provide the Harrods guest with the opportunity to experience a high quality evening dining service outside of store trading hours,” the report said.

The restaurant also plans to operate a ‘no show’ policy where guests who do not arrive within 30 minutes of their reservation will have it cancelled.

In a statement Harrods said it would not be getting rid of its fine wine department as part of the move, but it would move elsewhere.

“Whilst we have submitted a planning request to redevelop the space in the lower ground floor to make way for a restaurant, we are not closing down the department. We will continue to host a fine wine department in the store, providing the same range of high quality products and brands to customers,” it said.

The luxury department store was founded in London’s East End by Charles Henry Harrod in 1834 and has occupied its current building since 1912.

Kensington and Chelsea Council will make a ruling on the application later this year.