Mohamed Fayed’s casual relationship with the truth held back his business achievements
Little has been heard from Mohamed Fayed during the last decade.
He sold Harrods to Qatar Holdings as long ago as May 2010 and his other main trophy asset in the UK, Fulham FC, was offloaded to the US businessman Shahid Khan in July 2013.
That latter deal brought down the curtain on a controversial – to say the least – career during which he had been a prominent figure in British business for nearly 30 years.
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Fayed’s death announced aged 94
Fayed (he added the honorific ‘al’ to his name, despite having no right to, after he arrived in the UK in the 1960s) remains best known to the general public for the relationship his late son, Dodi, enjoyed with Diana, Princess of Wales and for the corrupt payments he made to MPs to ask questions on his behalf in parliament.
Before that, though, the Egyptian tycoon had become a notorious figure in the City and in British business circles for his unorthodox approach and his somewhat casual relationship with the truth.
Many people, including some who should have known better, bought the story that this son of a primary school teacher was, in fact, the expensively educated scion of one of Egypt’s richest shipping families – although he did, in the end, accumulate a fortune the size of which was never entirely clear.
Founding his fortune
That fortune was founded on his early dealings with Adnan Khashoggi, a wealthy Saudi arms dealer, whose sister he married and later divorced.
After working for Khashoggi, his ability as a deal-maker drew him to the attention of the Sultan of Brunei, for whom he worked for a while and under whom he accumulated sufficient wealth to acquire a shipping agency.
He later sought to establish an oil production business in Haiti, posing as a Kuwaiti sheikh, before the samples he had hoped might be crude oil turned out to be molasses.
He eventually had to flee the island after falling out with its monstrous dictator ‘Papa Doc’ Duvalier.
After acting as a middleman in more deals in the Middle East, Fayed pitched up in London, again posing as an Arab sheikh and setting himself up in an apartment on Park Lane.
Many were taken in by him. He and his brother, Ali, had sufficient funds or backing by 1978 to buy the Ritz hotel in Paris for $30m.
The nastiest and dirtiest takeover battles in history
What really put him on the map though, so far as the City was concerned, was the saga which began in November 1984 and which turned into one of the nastiest and dirtiest takeover battles in history.
The mining conglomerate Lonrho, which owned a sprawling portfolio of assets across the world but primarily in Africa, had for years been trying to buy Harrods – then owned by the House of Fraser department store chain.
Its chief executive, Roland “Tiny” Rowland, had built a 29.9% stake in House of Fraser as a prelude to a takeover bid for the company – which was referred to the old Monopolies & Mergers Commission by Margaret Thatcher’s government.
Mr Rowland, who had been famously dubbed “the unacceptable face of capitalism” by the former prime minister Edward Heath, knew the referral could be tricky.
So he hit on the wheeze of “parking” the stake with the Fayed brothers.
Unfortunately for him, he was double-crossed by Mohamed who, backed by the Sultan of Brunei, used the stake to launch a £615m takeover bid of his own.
He acquired the business and, in the process, deprived Mr Rowland of a treasured asset he had been stalking for the best part of a decade.
An enraged Mr Rowland waged a campaign against him thereafter to obtain revenge on the ‘”phoney pharaoh”.
The Department of Trade & Industry investigated the takeover and, when Mr Rowland obtained a leaked copy of its report, he published it in March 1989 in a special midweek edition of The Observer, the world’s oldest Sunday newspaper, which was at the time owned by Lonrho.
The DTI report pulled no punches.
A ruined reputation
In their most damning line, the DTI inspectors said the Fayeds had “dishonestly misrepresented their origins, their wealth, their business interests and their resources to the secretary of state, the Office of Fair Trading, the press, the House of Fraser board, House of Fraser shareholders and their own advisers”.
It forever ruined Fayed’s reputation and, arguably, ensured that he was never given the British passport he craved for so many years.
Two years later, in an unprecedented move, the Bank of England forced the Fayed brothers to relinquish control of Harrods Bank after deciding they were not fit and proper people to run a deposit-taking institution.
However, despite Mr Rowland’s best efforts, Mr Fayed retained control of Harrods.
He gave up his fight in 1993 when, just before Christmas, he and Fayed publicly embraced in the Harrods food hall.
Months later, Mr Fayed floated House of Fraser on the stock market, but kept Harrods.
Harrods
Troubled time at Harrods
The first two decades of his ownership of the department store were troubled.
Profits fell and Fayed was variously accused of electronically eavesdropping on employees and of firing minority employees with no cause.
Mr Rowland also alleged that papers he had kept in a security box at Harrods had been stolen and, while the police never charged anyone, damages were ultimately paid to Mr Rowland’s widow.
By the turn of the century, the business was in a bad way, with Mr Fayed’s management style ensuring a vast turnover of top management.
Between 2000 and 2002, Harrods lost no fewer than 12 directors, while between 2000 and 2005 it got through five managing directors.
Meanwhile the store itself, in the eyes of critics, degenerated into a “vulgar Egyptian theme park”.
Fayed finally got it right when, in March 2006, he poached Michael Ward, a retailer-turned-private equity executive, from Apax to fill the vacant post of Harrods managing director.
It was a fine and shrewd appointment.
During his first year in charge, Mr Ward increased annual profits at the business by 152% and, crucially, found a way of working with the owner.
Shortly after the Qatari takeover, in 2010, Mr Ward – who stayed with Harrods under its Qatari owners and propelled it to record annual sales and profits several times since – explained to the Sunday Times: “Once trust was established he was a very good person to work with. The problem, historically, was that nobody managed to cross that barrier.”
Interestingly, while Fayed sold both Harrods and Fulham, he never relinquished control of the Paris Ritz, the trophy asset he held on to longer than any other despite the fact that, for long periods of his ownership, it was heavily loss-making.
It will be interesting to see whether his heirs choose to cash in on this most valuable of properties after his death.
Former world champion boxer Ricky Hatton has died aged 46.
During his career between 1997 and 2012, the British fighter – nicknamed “The Hitman” – won titles in the light welterweight and welterweight divisions.
As it happened: Tributes paid to former boxing world champion
In July this year, he announced he was coming out of retirement for a December bout in Dubai, 13 years on from his last professional match.
The Manchester boxer had been set to fight Eisa Al Dah on 2 December.
In 2023, Sky broadcast a documentary exploring the boxer’s life in the ring, his fractured personal life and his continuing mental health battles.
Greater Manchester Police said on Sunday: “Officers were called by a member of the public to attend Bowlacre Road, Hyde, Tameside, at 6.45am today where they found the body of a 46-year-old man.
“There are not currently believed to be any suspicious circumstances.”
Sky News sport correspondent Rob Harris called Hatton “one of the great personalities of British boxing,” crediting him with “galvanising the sport”.
He said: “As he would travel around the world, winning fights, he would bring that huge fan base with him… To have the career he had, with 45 victories and three defeats, was impressive…
Hatton in his last professional fight against Vyacheslav Senchenko in 2012. Pic: Reuters
“This will be devastating to many boxing fans and particularly his family, given it was just weeks before he was due to make his comeback… So many people will be reflecting on just what a contribution and what an icon he was to British boxing and just how he could seem so ordinary as well, while still achieving great sporting heights”.
During his 15-year professional career, Hatton held multiple world championships at light-welterweight and one at welterweight class.
In his prime, Hatton secured victories over the likes of Kostya Tszyu and Jose Luis Castillo, before going on to suffer brutal knockout losses to Floyd Mayweather Jr in 2007 and Manny Pacquiao in 2009.
Hatton last fought professionally in November 2012, suffering a knockout loss to Ukraine’s Vyacheslav Senchenko.
He once more returned to the ring for a non-scoring exhibition bout with Marco Antonio Barrera in 2022.
Ricky Hatton’s WBC welterweight fight with Floyd Mayweather Jr in 2007. Pic: Reuters
Messages from those in the sports world poured in following news of his death, with boxers including Amir Khan, Tyson Fury, Chris Eubank Jr and Barry McGuigan, and footballers Michael Owen and Wayne Rooney all paying tribute.
As one of Manchester City’s most famous fans, the team announced there would be a minute’s appreciation ahead of the Manchester derby on Sunday afternoon.
City and England midfielder Phil Foden scored in the 3-0 victory and dedicated the win to Hatton.
“It was for him and his family. It was all for him and we are delighted with the result.”
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Manchester City, the football team Ricky Hatton supported throughout his life, held a minute’s applause for the late boxer ahead of their derby game against Manchester United.
Born Richard John Hatton in Stockport, Cheshire, in October 1978, he rose through amateur and domestic levels to become one of the most popular fighters in the first decade of the new century.
But he had suffered a series of well-publicised issues in his private life since his 2009 defeat against Pacquiao in their IBO light-welterweight title fight in Las Vegas.
Hatton said at the time he did not want to see those demons tarnish his legacy in the sport, and had another world title belt in his sights.
In 2010, he was admitted to rehab, struggling with drink and depression.
Hatton overcame a fallout with his family and a court case with his former trainer Billy Graham to become a successful trainer, coaching Zhanat Zhakiyanov to a world bantamweight title win in 2017.
Hatton with professional ice-skater Robin Johnstone on Dancing On Ice in 2024. Pic: PA
His down-to-earth attitude endeared him to fans around the world and, in 2024, he joined ITV reality show Dancing On Ice, but was the first celebrity to leave the competition.
His professional skating partner, Robin Johnstone, paid tribute on Instagram, saying she was “beyond sad” at the “devastating news,” adding, “You were a true friend.”
Everybody wanted a piece of Ricky Hatton
There are few sporting stars who cross from the newspaper back pages to become front page news… but Ricky Hatton always was one of them.
Aside from his boxing brilliance, it was his personality and humour which made people pay attention.
In recent years, his happy-go-lucky character saw him cast on reality shows like Dancing on Ice.
But what’s more interesting is how and why the public came to have such great affection for him back in the day.
Putting it kindly, sports stars aren’t always known for their sparkling personalities.
It was Ricky’s lack of interest in the trappings of fame which accompanied his epic run of victories that made him all the more cool.
He was the working class hero who seemed unstoppable. It was a story that everyone wanted to follow.
Celebrities wanted to be seen alongside him. Piggy-backing off his popularity the likes of Brad Pitt, Angelina Jolie, Denzel Washington and David Beckham were all pictured ringside at one time or another, drawn to his fan-friendly style and impressive winning streak.
At the same time as the Gallagher brothers were flying the flag for music from Manchester, Hatton was doing the same for boxing.
During his 2008 fight against Paulie Malignaggi, he infamously had Liam and Noel escort him to the ring.
In an interview he said he thought all three of them might be killed when Liam held up Hatton’s IBO belt inches from Malignaggi’s face and with a swagger said ‘what do you think about that you d*** head?’.
Stories like that are why his appeal extended beyond sport. He was an ordinary bloke who’d done extraordinary things. He never lost sight of who he was and fans loved him for it.
Speaking ahead of his final professional fight in 2012, Hatton, who was a father of three, told reporters: “I don’t want people telling my kids that I blew it. I want my kids to be able to say, ‘He was a world champion, he had his problems, but my did he bounce back’.
“I want people to be proud of me again. I want British sport, my kids and my fans and my friends to be proud of me.”
Hatton leaves behind his three children, daughters Millie and Fearne and son Campbell.
Anyone feeling emotionally distressed or suicidal can call Samaritans for help on 116 123 or email jo@samaritans.org in the UK. In the US, call the Samaritans branch in your area or 1 (800) 273-TALK.
UK
Mandelson appointment was ‘worth the risk’ despite ‘strong relationship’ with Epstein, says minister
Appointing Lord Mandelson as the UK’s ambassador to the US was “worth the risk”, a minister has told Sky News.
Peter Kyle said the government put the Labour peer forward for the Washington role, despite knowing he had a “strong relationship” with convicted sex offender Jeffrey Epstein.
It is this relationship that led to Peter Mandelson being fired on Thursday by the prime minister.
Lord Mandelson and Jeffrey Epstein. File pic
But explaining the decision to appoint Lord Mandelson, Business Secretary Mr Kyle said: “The risk of appointing [him] knowing what was already public was worth the risk.
“Now, of course, we’ve seen the emails which were not published at the time, were not public and not even known about. And that has changed this situation.”
Speaking to Sunday Morning with Trevor Phillips, he rejected the suggestion that Lord Mandelson was appointed to Washington before security checks were completed.
He explained there was a two-stage vetting process for Lord Mandelson before he took on the ambassador role.
The first was done by the Cabinet Office, while the second was a “political process where there were political conversations done in Number 10 about all the other aspects of an appointment”, he said.
This is an apparent reference to Sir Keir Starmer asking follow-up questions based on the information provided by the vetting.
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‘We knew it was a strong relationship’
These are believed to have included why Lord Mandelson continued contact with Epstein after he was convicted and why he was reported to have stayed in one of the paedophile financier’s homes while he was in prison.
Mr Kyle said: “Both of these things turned up information that was already public, and a decision was made based on Peter’s singular talents in this area, that the risk of appointing knowing what was already public was worth the risk.”
Mr Kyle also pointed to some of the government’s achievements under Lord Mandelson, such as the UK becoming the first country to sign a trade deal with the US, and President Donald Trump’s state visit next week.
Mr Kyle also admitted that the government knew that Lord Mandelson and Epstein had “a strong relationship”.
“We knew that there were risks involved,” he concluded.
PM had only ‘extracts of emails’ ahead of defence of Mandelson at PMQs – as Tories accuse him of ‘lying’
Speaking to Sky News, Kyle also sought to clarify the timeline of what Sir Keir Starmer knew about Lord Mandelson’s relationship with Epstein, and when he found this out.
It follows Conservative Party leader Kemi Badenoch accusing the prime minister of “lying to the whole country” about his knowledge of the then US ambassador’s relationship with the paedophile.
Allegations about Lord Mandelson began to emerge in the newspapers on Tuesday, while more serious allegations – that the Labour peer had suggested Epstein’s first conviction for sexual offences was wrongful and should be challenged – were sent to the Foreign Office on the same day by Bloomberg, which was seeking a response from the government.
But the following day, Sir Keir went into the House of Commons and publicly backed Britain’s man in Washington, giving him his full confidence. Only the next morning – on Thursday – did the PM then sack Lord Mandelson, a decision Downing Street has insisted was made based on “new information”.
Read more:
Witch-hunt vibe in Labour on who approved appointment
Senior Labour MP demands answers over Mandelson vetting
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Vetting ‘is very thorough’
Speaking to Sunday Morning with Trevor Phillips, Mr Kyle said: “Number 10 had what was publicly available on Tuesday, which was extracts of emails which were not in context, and they weren’t the full email.
“Immediately upon having being alerted to extracts of emails, the Foreign Office contacted Peter Mandelson and asked for his account of the emails and asked for them to be put into context and for his response. That response did not come before PMQs [on Wednesday].
“Then after PMQs, the full emails were released by Bloomberg in the evening.
“By the first thing the next morning when the prime minister had time to read the emails in full, having had them in full and reading them almost immediately of having them – Peter was withdrawn as ambassador.”
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Government deeming Mandelson to be ‘worth the risk’ is unlikely to calm Labour MPs
The Conservatives have claimed Sir Keir is lying about what he knew, with Laura Trott telling Sky News there are “grave questions about the prime minister’s judgement”.
The shadow education secretary called for “transparency”, and told Sunday Morning with Trevor Phillips: “We need to understand what was known and when.”
Laura Trott says there are ‘grave questions about the prime minister’s judgement’
They believe that Sir Keir was in possession of the full emails on Tuesday, because the Foreign Office passed these to Number 10. This is despite the PM backing Mandelson the following day.
Ms Trott explained: “We are calling for transparency because, if what we have outlined is correct, then the prime minister did lie and that is an extremely, extremely serious thing to have happened.”
She added: “This was a prime minister who stood on the steps of Downing Street and said that he was going to restore political integrity and look where we are now. We’ve had two senior resignations in the space of the number of weeks.
“The prime minister’s authority is completely shot.”
But Ms Trott refused to be drawn on whether she thinks Sir Keir should resign, only stating that he is “a rudderless, a weak prime minister whose authority is shot at a time we can least afford it as a country”.
UK
‘Minority’ who attacked police at ‘Unite the Kingdom’ rally ‘will pay a price’, minister says as up to 150,000 people march in London
People who attacked and injured police officers at a march organised by far-right activist Tommy Robinson “should and will pay a price” for their violence, the business secretary has said.
Peter Kyle condemned the bad behaviour at the “Unite the Kingdom” event in London on Saturday, which saw up to 150,000 take part in the rally.
Appearing on Sunday Morning With Trevor Phillips, Mr Kyle said the number of people who turned up showed that free speech is “alive and well” in the UK.
He said: “It doesn’t disturb me, because it’s actually proof that we live in a country where free speech, free association, is alive and well.
“The bit that disturbs me is that when a minority go to an extreme and end up perpetrating violence against the police – that is unacceptable and those people should and will pay a price for it.”
Home Secretary Shabana Mahmood vowed that anyone found to have taken part in criminal activity would “face the full force of the law” – as police said at least 25 people were arrested and 26 officers were injured – including four who were seriously hurt.
Prime Minister Sir Keir Starmer posted on X: “People have a right to peaceful protest. It is core to our country’s values.
“But we will not stand for assaults on police officers doing their job or for people feeling intimidated on our streets because of their background or the colour of their skin.
“Britain is a nation proudly built on tolerance, diversity and respect. Our flag represents our diverse country and we will never surrender it to those that use it as a symbol of violence, fear and division.”
Protesters forming the rally gathered in the centre of the capital, holding Union and St George’s flags.
Mr Kyle said: “The flag was waved quite a lot and I do want to make the point that the flag belongs to all of us.
“That flag means a lot of different things to a lot of people, but it is about essential British and English values and principles.
“Those English values and principles include free speech, freedom of association and the like, and all of those things are demonstrated just by the fact that that protest went along and that demonstration went along completely freely, it shows that those values are actually alive and well.”
Activists fly flags and carry wooden crosses during the ‘Unite the Kingdom’ march in London. Pic: Reuters
Protesters heard a series of speeches, including from Robinson, who called it the “biggest freedom of speech” in British history.
Police estimated that between 110,000 to 150,000 attended the event.
An anti-racism counter-protest, attended by about 5,000 campaigners, also took place, with the two groups clashing on Whitehall and Trafalgar Square, separated by lines of police.
The Metropolitan Police‘s Assistant Commissioner Matt Twist said officers faced “significant aggression” from “Unite the Kingdom” attendees.
“The violence they faced was wholly unacceptable,” he said.
“Twenty-six officers were injured, including four seriously – among them broken teeth, a possible broken nose, a concussion, a prolapsed disc and a head injury.”
People have been arrested for a range of offences, including affray, violent disorder, assaults, and criminal damage.
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Protesters clash with police
Police said the Robinson crowd was too big to fit into Whitehall and a confrontation happened when police tried to stop them from encircling counter-protesters and accessing the area from different routes.
A Met spokesman said: “When officers moved in to stop them, they faced unacceptable violence. They were assaulted with kicks and punches. Bottles, flares and other projectiles were thrown.”
Officers continued to face aggression in multiple locations, in particular at the north of Whitehall as they worked to create a safe exit route for those who had been taking part in the Stand Up To Racism protest.
Robinson supporters hurled projectiles at counter-demonstrators as both groups faced off on Whitehall, police said.
A row of police horses stood opposite a crowd waving Union flags, and at one point, a glass bottle seemed to strike one of the horses, causing both the animal and its rider to stumble backward.
‘Unite the Kingdom’ protesters in Trafalgar Square. Pic: Reuters
Protesters in Whitehall. Pic: Reuters
Activists take part in the March Against Fascism, organised by Stand Up To Racism. Pic: PA
Musk makes surprise appearance
Robinson live-streamed the rally on X, with its audience peaking at 2.9 million viewers on Saturday afternoon.
Making a surprise appearance via video link, tech billionaire Elon Musk called for a “change of government” in the UK.
“You can’t – we don’t have another four years, or whenever the next election is, it’s too long,” Musk told the crowd. “Something’s got to be done. There’s got to be a dissolution of parliament and a new vote held.”
TV presenter Katie Hopkins also spoke after earlier appearing alongside Robinson, Lawrence Fox and Ant Middleton at the front of the march.
Katie Hopkins and Tommy Robinson at the rally. Pic: PA
‘Revolution has started – you can’t stop it’
With a voice which sounded hoarse from shouting, Robinson told crowds during his speech that “millions” had showed up for the rally.
“The dam has well and truly burst,” he said. “The cat is out of the bag and there is no putting it back in. The silent majority will be silent no longer.”
Addressing the prime minister and the Labour government, Robinson said: “The revolution has started – and you can’t stop it.”
Referring to a Court of Appeal decision to overturn an injunction blocking asylum seekers being housed at The Bell Hotel in Epping, Essex, Robinson claimed UK courts found the rights of undocumented migrants supersede those of the “local community”.
He said: “They told the world that Somalians, Afghanis, Pakistanis, all of them, their rights supersede yours – the British public, the people that built this nation.”
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