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.
Read more:
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.
UK
Lucy Hargreaves was shot dead in 2005 – her home set on fire. A suspect in her murder is still at large
Britain’s most-wanted fugitive is still on the run – exactly 20 years after the fatal shooting of a young mother of three.
Kevin Parle is a suspect in the murder of Lucy Hargreaves, 22, who was shot dead at her home in Liverpool before the house was set on fire on 3 August 2005.
Since then, after many appeals for information, there has been no confirmed sighting, word or trace of him.
Two decades on, Ms Hargreaves’ family have had no justice. Two young men prosecuted for her murder had charges dropped when a judge ruled there was insufficient evidence against them.
In a statement marking the anniversary of her death, they said: “The way we lost Lucy is not something families can ever truly come to terms with – it is still incredibly difficult and painful to think about.
“Over the past 20 years, people will have talked with family and friends. A number of people were contacted by males using a phone that was stolen along with a vehicle used in Lucy’s murder.
“We appeal directly to them to please come forward. Now is the time.”
Police prediction of how Kevin Parle has aged since 2005. Pic: Merseyside Police
Three men burst into Lucy’s home 20 years ago today, shot her dead as she slept on a sofa, and set alight the duvet she’d been sleeping under.
It’s believed the gang were looking for her boyfriend Gary Campbell, who was upstairs. He fled from a window with their two-year-old daughter and then tried in vain to save Ms Hargreaves.
Mr Campbell had allegedly been a passenger in a stolen car that had hit and killed a young boy 12 years earlier, supposedly the motive for the shooting. He denied he was in the car at the time.
Ms Hargreaves with her three children
Howard Rubbery, head of the Serious Crime Review Unit at Merseyside Police said: “The family remain absolutely devastated by Lucy’s death.
“It’s important to note Lucy is an absolutely innocent victim. She’s not from a family of criminality. She wasn’t involved in criminality.
“The hunt for Kevin Parle is very much on, and we ask anybody with information, anybody who is close to Parle and knows where he is, to please come forward.
“There were three males responsible for this offence and we are looking for justice for Lucy’s family in relation to all three.
“I do believe that there are people out there who have yet to speak to the police, even though it’s 20 years on, who hold information that’s absolutely vital to our investigation.”
Police believe Parle, now in his 40s, fled to Spain where he hid among the vast expat community with criminal help.
Several years later, I tracked his movements to a holiday complex near Torrevieja, where staff convinced me he had stayed there for several weeks.
Former detective Peter Bleksley says Parle is being protected
‘Huge value to organised crime’
Former Scotland Yard detective Peter Bleksley, who recently spent four years on a personal hunt for Parle, also visited the complex and said: “He was bold and he was brash and he had a girlfriend at one point.
“The police actually should have captured him there, but they were too late.”
He claimed he nearly caught up with Parle at a villa elsewhere in Spain, but spooked him into disappearing again.
Mr Bleksley hosted an award-winning podcast and wrote a book in which he chronicled his manhunt.
He said: “Kevin Parle has remained hidden because he is funded, protected, looked after and of huge value to global, serious and organised crime.”
Parle can’t be hard to spot – he’s well-built, 6ft 5in tall, red-haired with a face scar and, originally at least, has a Liverpool accent. Of course, he might be dead.
Mr Bleksley said: “I can think of many reasons why certain criminals would want to get rid of Kevin Parle because he could, in terms of evidence about the cases that he’s wanted for, should he flip and become a witness for the Crown, be highly damaging for a lot of very tasty criminals.”
16-year-old Liam Kelly was shot dead a year before Ms Hargreaves. Pic: Merseyside Police
Parle is also wanted in connection with the murder of 16-year-old Liam Kelly, who was shot dead over an alleged £200 debt in June 2004, a year before Lucy’s death. Parle was arrested and questioned, but then freed on bail.
There have been reports of the fugitive in Australia and Dubai, but nothing to corroborate any of them.
If he’s alive and if no one is prepared to shop him, what might lead to his capture?
“I think when he has a fallout with those who have guarded him, funded him, fed him, put a roof over his head and all of that, maybe even paid for his plastic surgery that could have altered his appearance,” Mr Bleksley said.
“When he finally has a fallout, when he’s no longer of use, then perhaps that will be the day that somebody goes, Peter, he’s here.”
Several demonstrators have been detained after rival groups faced off over a hotel accommodating asylum seekers in north London, with police breaking up brief clashes.
The Metropolitan Police has since imposed conditions on the protest and counter-protest outside the Thistle City Barbican Hotel in Islington.
The protest was organised by local residents under the banner “Thistle Barbican needs to go – locals say no”.
The group of several hundred people waved union flags and banners, and one man chanted: “Get these scum off our streets.”
Anti-immigration protesters waved Union Jack flags. Pic: PA
A larger group staged a counter demonstration to voice support for asylum seekers, bearing a banner that read: “Refugees are welcome.”
People inside the hotel, believed to be migrants, watched on, with some waving and blowing kisses from the windows.
People believed to be asylum seekers waved the hotel windows. Pic: PA
Pro-immigration protesters gathered by the Thistle City Barbican Hotel. Pic: PA
A man wearing an England football shirt was detained by police after getting into an altercation with officers.
There have been nine arrests so far, seven of which were for breaching conditions police put on the protests under the Public Order Act.
Rival groups separated by police
Another protest was scheduled in Newcastle on Saturday, outside The New Bridge Hotel, as anti-migrant sentiment ripples through some communities around the country, also flaring up recently in Epping.
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Last week: Protesters divided over migrant hotels
The counter-protest in London was organised by local branches of Stand Up To Racism, and supported by former Labour leader and Islington North MP Jeremy Corbyn.
Other community groups including Finsbury Park Mosque and Islington Labour Party were also involved.
Groups online that backed the original protest include “Patriots of Britain” and “Together for the Children”.
At one point, a large group of masked protesters dressed in black, calling themselves anti-fascists, appeared from a side street and marched towards the rival group outside the hotel.
The two groups briefly clashed before police rushed in to separate them.
Pic: PA
Supporters of local protest group ‘Thistle Barbican needs to go – locals say no’. Pic: PA
Why are asylum hotels used?
The government is legally required to provide accommodation and subsistence to destitute asylum seekers while their claims are being decided, most of whom are prohibited from working.
A jump in the use of hotels since 2020 has been attributed to the impacts of the COVID pandemic, a backlog in unresolved asylum cases, and an increase in the number of migrants crossing the Channel in small boats.
However, the number of asylum seekers living in hotels has fallen recently, from 38,079 at the end of 2024 to 32,345 at the end of March 2025, according to the Refugee Council.
How police tried to keep groups apart
The police imposed conditions on both groups in London to prevent “serious disorder” and minimise disruption to the community.
Those in the anti-asylum hotel protest were told to remain within King Charles Square, and to gather not before 1pm and wrap up by 4pm.
Those in the counter-protest were to required to stay in an area in Lever Street, and assemble only between 12pm and 4pm, but were still in eye and ear shot of the other group.
Chief Superintendent Clair Haynes, in charge of the policing operation, said: “We have been in discussions with the organisers of both protests in recent days, building on the ongoing engagement between local officers, community groups and partners.
“We understand that there are strongly held views on all sides.
“Our officers will police without fear or favour, ensuring those exercising their right to protest can do so safely, but intervening at the first sign of actions that cross the line into criminality.”
Meanwhile, the protest in Newcastle was promoted by online posts saying it was “for our children, for our future”.
The “stop the far right and fascists in Newcastle” counter-protest was organised by Stand Up To Racism at the nearby Laing Art Gallery.
A man has been remanded into custody charged with child cruelty offences after allegedly lacing sweets with sedatives.
Jon Ruben, 76, of Ruddington, Nottinghamshire, appeared at Leicester Magistrates’ Court on Saturday after youngsters fell ill at a summer camp in Stathern, Leicestershire.
He has been charged with three counts of wilfully assaulting, ill-treating, neglecting, abandoning or exposing children in a manner likely to cause them unnecessary suffering or injury to health.
The charges relate to three boys at the camp between 25-29 July.
The scene in Stathern, Leicestershire. Pic: PA
Ruben spoke only to confirm his name, age and address.
Police received a report of children feeling unwell at a camp being held at Stathern Lodge, near Melton in Leicestershire, last Sunday.
Officers said paramedics attended the scene and eight boys – aged between eight and 11 – were taken to hospital as a precaution, as was an adult. They have since been discharged.
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Police said the “owners and operators of Stathern Lodge are independent from those people who use or hire the lodge and are not connected to the incident”.
Leicestershire Police has referred itself to the Independent Office for Police Conduct, after officers initially reported the incident as having happened on Monday, only to later amend it to Sunday.
It is still unclear when officers responded and whether that is why the watchdog referral has been made.
Ruben will next appear at Leicester Crown Court on 29 August.
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