Mohamed al Fayed was a “predator” who “preyed on the most vulnerable”, one of his alleged victims has said.
The billionaire was described as a “monster enabled by a system that pervaded Harrods” by lawyers representing 37 alleged victims of sexual abuse at a press conference in London.
Dean Armstrong KC said the case “combines some of the most horrific elements” of those including Jimmy Savile, Jeffrey Epstein and Harvey Weinstein.
The Egypt-born businessman, who died last year at the age of 94, took control of the luxury department store in 1985 and later expanded his business interests to include the Paris Ritz and Fulham Football Club.
One of his alleged victims, Natacha, said she was a “young, naive and totally innocent” 19-year-old when she moved to London.
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0:42
‘Mohamed Al Fayed was a monster’ says Dean Armstrong KC.
She believed she had been given “the chance of a lifetime” when she got a job at Harrods in central London and thought it seemed “entirely innocent” when she was offered extra money and gifts to take home to her parents.
“Unbeknownst to me, I had walked into a lion’s den, a lair of cover-ups, deceit, lies, manipulation, humiliation and gross sexual misconduct,” Natacha said, describing Fayed as a “predator”, who “preyed on the most vulnerable”.
She said she was summoned to Fayed’s private apartment one night “on the pretext of a job review” before “the door was locked behind me”.
“I saw his bedroom door partially open – there were sex toys on view” she said. “I felt petrified. I perched myself at the very end of the sofa and then… my boss, the person I worked for, pushed himself onto me.”
Image: Alleged victim of sexual abuse: ‘I had walked into a lions den’
‘Scared and sick’
Natacha said that after she managed to “kick herself free”, he laughed at her and told her “never to breathe a word of this to anyone”, leaving her feeling “scared and sick”.
More than 20 female former employees have spoken of suffering assaults and physical violence at properties in London and Paris in an investigation published by the BBC.
Five of the women said they had been raped by Fayed, while another has now come forward to claim she was subjected to a “sickening” sexual assault by the billionaire.
Harrods said in a statement on Thursday it was “utterly appalled” by the allegations of abuse and apologised to Fayed’s alleged victims.
The department store has also set up a page on its website inviting former employees to come forward if they have allegations.
The legal team involved in a civil claim against Harrods for allegedly failing to provide a safe system of work for its employees said they aimed to seek justice for the victims of a “vast web of abuse”.
‘Corporate exploitation’
Barrister Bruce Drummond told the press conference it is “one of the worst cases of corporate sexual exploitation” that he and “perhaps the world has ever seen”.
Most of the victims were aged 19 to 24, while some were as young as 15 or 16, and were specially selected for their roles before being told to undergo private invasive medical examinations, lawyers said.
Image: Pic: AP
US lawyer Gloria Allred, who has represented accusers of Weinstein, R Kelly and Bill Cosby, said the allegations include serial rape, attempted rape, sexual battery and sexual abuse of minors.
She said there was “something rotten at the core of Harrods”, where “underneath the glitz and glamour was a toxic, unsafe and abusive environment”.
The alleged attacks are said to have taken place at locations including the London department store, as well as the Ritz in Paris and the former Duke of Windsor’s residence in the French capital.
‘Terror was reinforced by threats’
Lawyers said they were aware of allegations made by employees at other businesses owned by Fayed and are representing women who worked at the Ritz.
“He used his wealth and his power to manipulate and control female victims for his sexual pleasure,” Ms Allred said.
Most of his alleged victims were “terrified and felt they had no place to turn,” she said and their “terror was reinforced by threats, surveillance and phone tapping”.
Mr Armstrong said the claim shows an “abject failure of corporate responsibility” by Harrods and “it is time they took responsibility”.
“This case combines some of the most horrific elements of the cases involving Jimmy Savile, Jeffrey Epstein and Harvey Weinstein,” he said.
“Savile because in this case, as in that, the institution, we say, knew about the behaviour.
“Epstein because in that case, as in this, there was a procurement system in place to source the women and girls – as you know there are some very young victims.
“And Weinstein because it was a person at the very top of the organisation who was abusing his power.
“We will say plainly, Mohamed al Fayed was a monster.”
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Fayed had previously been accused of sexually assaulting and groping multiple women, but a 2015 police investigation did not lead to any charges.
He fought a long campaign following the death of his son, the film producer Dodi Fayed and Princess Diana in 1997, alleging the Paris car crash was not an accident but had been orchestrated by the British security services.
‘Utterly appalled’
Harrods said in a statement: “We are utterly appalled by the allegations of abuse perpetrated by Mohamed al Fayed.
“These were the actions of an individual who was intent on abusing his power wherever he operated and we condemn them in the strongest terms.
“We also acknowledge that during this time as a business we failed our employees who were his victims and for this we sincerely apologise.
“The Harrods of today is a very different organisation to the one owned and controlled by Fayed between 1985 and 2010, it is one that seeks to put the welfare of our employees at the heart of everything we do.
“This is why, since new information came to light in 2023 about historic allegations of sexual abuse by Fayed, it has been our priority to settle claims in the quickest way possible, avoiding lengthy legal proceedings for the women involved.”
Metropolitan Police Commander Kevin Southworth said: “We are aware of various allegations of sexual offences made over a number of years in relation to the late Mohamed al Fayed which were reported to the Met.
“Each one was investigated and, where appropriate, advice from the Crown Prosecution Service was sought. No charges resulted from these investigations.”
Her comments followed the departure of the prince and several others from the organisation in March.
They had asked her to step down, alleging it was in the “best interest of the charity”.
Dr Chandauka told Sky News that Harry had “authorised the release of a damaging piece of news to the outside world” without informing her or Sentebale directors.
The Duke and Duchess of Sussex declined to offer any formal response.
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4:43
Why was Prince Harry accused of ‘bullying’?
‘Strong perception of ill-treatment’
The Charity Commission said it was reporting after a “damaging internal dispute emerged” and has “criticised all parties to the dispute for allowing it to play out publicly”.
That “severely impacted the charity’s reputation and risked undermining public trust in charities more generally”, it said.
But it found no evidence of “widespread or systemic bullying or harassment, including misogyny or misogynoir at the charity”.
Nevertheless, it did acknowledge the “strong perception of ill-treatment felt by a number of parties to the dispute and the impact this may have had on them personally”.
It also found no evidence of “‘over-reach’ by either the chair or the Duke of Sussex as patron”.
‘Confusion exacerbated tensions’
But it was critical of the charity’s “lack of clarity in delegations to the chair which allowed for misunderstandings to occur”.
And it has “identified a lack of clarity around role descriptions and internal policies as the primary cause for weaknesses in the charity’s management”.
That “confusion exacerbated tensions, which culminated in a dispute and multiple resignations of trustees and both founding patrons”.
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4:43
Why was Prince Harry accused of ‘bullying’?
Harry: Report falls troublingly short
A spokesperson for Prince Harry said it was “unsurprising” that the commission had announced “no findings of wrongdoing in relation to Sentebale’s co-founder and former patron, Prince Harry, Duke of Sussex”.
They added: “Despite all that, their report falls troublingly short in many regards, primarily the fact that the consequences of the current chair’s actions will not be borne by her, but by the children who rely on Sentebale’s support.”
They said the prince will “now focus on finding new ways to continue supporting the children of Lesotho and Botswana”.
Dr Chandauka said: “I appreciate the Charity Commission for its conclusions which confirm the governance concerns I raised privately in February 2025.”
But she added: “The unexpected adverse media campaign that was launched by those who resigned on 24 March 2025 has caused incalculable damage and offers a glimpse of the unacceptable behaviours displayed in private.”
All police forces investigating grooming gangs in England and Wales will be given access to new AI tools to help speed up their investigations.
The artificial intelligence tools are already thought to have saved officers in 13 forces more than £20m and 16,000 hours of investigation time.
The apps can translate large amounts of text in foreign languages from mobile phones seized by police, and analyse a mass of digital data to find patterns and relationships between suspects.
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2:00
Grooming gang inquiry: ‘Our chance for justice’
‘We must punish perpetrators’
The rollout is part of a £426,000 boost for the Tackling Organised Exploitation (TOEX) programme, which supports officers to investigate complex cases involving modern slavery, county lines and child sex abuse.
“The sexual exploitation of children by grooming gangs is one of the most horrific crimes, and we must punish perpetrators, provide justice for victims and survivors, and protect today’s children from harm,” said safeguarding minister Jess Phillips.
“Baroness Casey flagged the need to upgrade police information systems to improve investigations and safeguard children at risk. Today we are investing in these critical tools.”
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1:36
Key takeaways from the Casey review
Lack of ethnicity data ‘a major failing’
Police forces have also been instructed by the home secretary to collect ethnicity data, as recommended by Baroness Casey.
Her June report found the lack of data showing sex offenders’ ethnicity and nationality in grooming gangs was “a major failing over the last decade or more”.
She found that officials avoided the issue of ethnicity for fear of being called racist, but there were enough convictions of Asian men “to have warranted closer examination”.
The government has launched a national inquiry into the abuse and further details are expected to be announced in the coming weeks.
Rachel Reeves will need to find more than £40bn of tax rises or spending cuts in the autumn budget to meet her fiscal rules, a leading research institute has warned.
The National Institute of Economic and Social Research (NIESR) said the government would miss its rule, which stipulates that day to day spending should be covered by tax receipts, by £41.2bn in the fiscal year 2029-30.
In its latest UK economic outlook, NIESR said: “This shortfall significantly increases the pressure on the chancellor to introduce substantial tax rises in the upcoming autumn budget if she hopes to remain compliant with her fiscal rules.”
The deteriorating fiscal picture was blamed on poor economic growth, higher than expected borrowing and a reversal in welfare cuts that could have saved the government £6.25bn.
Together they have created an “impossible trilemma”, NIESR said, with the chancellor simultaneously bound to her fiscal rules, spending commitments, and manifesto pledges that oppose tax hikes.
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1:56
Could the rich be taxed to fill black hole?
Reeves told to consider replacing council tax
The institute urged the government to build a larger fiscal buffer through moderate but sustained tax rises.
“This will help allay bond market fears about fiscal sustainability, which may in turn reduce borrowing costs,” it said.
“It will also help to reduce policy uncertainty, which can hit both business and consumer confidence.”
It said that money could be raised by reforms to council tax bands or, in a more radical approach, by replacing the whole council tax system with a land value tax.
To reduce spending pressures, NIESR called for a greater focus on reducing economic inactivity, which could bring down welfare spending.
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1:40
What’s the deal with wealth taxes?
Growth to remain sluggish
The report was released against the backdrop of poor growth, with the chancellor struggling to ignite the economy after two months of declining GDP.
The institute is forecasting modest economic growth of 1.3% in 2025 and 1.2% in 2026. That means Britain will rank mid-table among the G7 group of advanced economies.
‘Things are not looking good’
However, inflation is likely to remain persistent, with the consumer price index (CPI) likely to hit 3.5% in 2025 and around 3% by mid-2026. NIESR blamed sustained wage growth and higher government spending.
It said the Bank of England would cut interest rates twice this year and again at the beginning of next year, taking the rate from 4.25% to 3.5%.
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Persistent inflation is also weighing on living standards: the poorest 10% of UK households saw their living standards fall by 1.3% in 2024-25 compared to the previous year, NIESR said. They are now 10% worse off than they were before the pandemic.
Professor Stephen Millard, deputy director for macroeconomics at NIESR, said the government faced tough choices ahead: “With growth at only 1.3% and inflation above target, things are not looking good for the chancellor, who will need to either raise taxes or reduce spending or both in the October budget.”