The managing director of Harrods has accused his former boss Mohamed al Fayed of presiding over “a toxic culture of secrecy, intimidation, fear of repercussion and sexual misconduct”.
Five women who used to work at the luxury department store have alleged they were raped by Fayed, who died last year at the age of 94, with several other former employees alleging sexual misconduct.
In a written statement, Michael Ward, who worked for the Egyptian billionaire at Harrods for four years, has denied having been previously aware of the businessman’s “criminality and abuse”.
He said Fayed’s ownership between 1985 and 2010 represents a “shameful period in the business’s history”.
Mr Ward apologised and said Harrods had “failed our colleagues”.
His statement reads: “As managing director of Harrods, I wanted to convey my personal horror at the revelations that have emerged over the past week.
“We have all seen the survivors bravely speak about the terrible abuse they suffered at the hands of Harrods former owner Mohamed Fayed.
“As we have already stated, we failed our colleagues and for that we are deeply sorry.
“As someone who has worked at Harrods since 2006, and therefore worked for Fayed until the change of ownership in 2010, I feel it is important to make it clear that I was not aware of his criminality and abuse.
“While it is true that rumours of his behaviour circulated in the public domain, no charges or allegations were ever put to me by the Police, the CPS, internal channels or others. Had they been, I would of course have acted immediately.”
Image: Harrods managing director Michael Ward. Pic: PA
Mr Ward also said an independent review was under way into issues arising from the allegations and that he had “provided all the information I have to ensure my own conduct can be reviewed alongside that of my colleagues”.
“I am not part of the committee conducting this review and will in no way influence its operation or recommendations… I have also stepped back from my charity trustee positions while this review is taking place,” he said.
Mr Ward added that Fayed had ran his business as his “own personal fiefdom”.
He continued: “It is now clear that he presided over a toxic culture of secrecy, intimidation, fear of repercussion and sexual misconduct.
“The picture that is now emerging suggests that he did this wherever he operated.”
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4:40
Fayed survivor speaks out: ‘It smashes his legacy’
Mr Ward insisted that the Harrods of today is “unrecognisable” compared to how it was under Fayed’s leadership.
He added that the business has established a settlement process which has been “designed in consultation with independent, external experts in personal injury litigation”.
“We encourage former colleagues to contact us using this process so that we can provide the support, and recourse, they need”, Mr Ward said.
Sources within Harrods have said the business has accepted vicarious liability, a rule of law that imposes strict liability on employers for the wrongdoings of their employees, for the conduct of Fayed for the purpose of settling claims of alleged victims brought to its attention since 2023.
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0:33
‘Mohamed al Fayed brainwashed me’
Some women have claimed they were subjected to “intrusive and wholly unnecessary” gynaecological tests to work for Fayed and have alleged the purpose of the tests was for checking for sexually transmitted infections.
Alleged victims are set to lodge a complaint against Dr Ann Coxon, claiming she has “questions to answer” over the examinations.
Dr Coxon declined to comment on the matter.
A General Medical Council spokeswoman said: “If we identify any potential fitness to practise concerns about individual doctors, we will thoroughly examine all relevant information and take action as appropriate.”
What has Fayed been accused of?
Dean Armstrong KC, a lawyer representing some of Fayed’s 37 alleged victims, has said the case against the businessman “combines some of the most horrific elements” of those including Jimmy Savile, Jeffrey Epstein and Harvey Weinstein.
The allegations have surfaced after an investigation by the BBC.
A former employee of Harrods has told Sky News “demonic” Fayed would “cherry pick” women from the shop floor and once they were called to his office they “couldn’t say no”.
After taking over Harrods in 1985, Fayed expanded his business interests to include the Paris Ritz and Fulham Football Club.
Lawyers say they are aware of allegations made by employees at other businesses owned by Fayed and are representing women who worked at the Paris Ritz.
There have not been any allegations against Fayed in relation to his ownership of Fulham FC between 1997 and 2013.
Donald Trump’s trade war escalation has sparked a global sell-off, with US stock markets seeing the biggest declines in a hit to values estimated above $2trn.
Tech and retail shares were among those worst hit when Wall Street opened for business, following on from a flight from risk across both Asia and Europe earlier in the day.
Analysis by the investment platform AJ Bell put the value of the peak losses among major indices at $2.2trn (£1.7trn).
The tech-focused Nasdaq Composite was down 5.8%, the S&P 500 by 4.3% and the Dow Jones Industrial Average by just under 4% at the height of the declines. It left all three on course for their worst one-day losses since at least September 2022 though the sell-off later eased back slightly.
Analysts said the focus in the US was largely on the impact that the expanded tariff regime will have on the domestic economy but also effects on global sales given widespread anger abroad among the more than 180 nations and territories hit by reciprocal tariffs on Mr Trump‘s self-styled “liberation day”.
They are set to take effect next week, with tariffs on all car, steel and aluminium imports already in effect.
Price rises are a certainty in the world’s largest economy as the president’s additional tariffs kick in, with those charges expected to be passed on down supply chains to the end user.
The White House believes its tariffs regime will force employers to build factories and hire workers in the US to escape the charges.
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5:07
The latest numbers on tariffs
Economists warn the additional costs will add upward pressure to US inflation and potentially choke demand and hiring, ricking a slide towards recession.
Apple was among the biggest losers in cash terms in Thursday’s trading as its shares fell by almost 9%, leaving it on track for its worst daily performance since the start of the COVID pandemic.
Concerns among shareholders were said to include the prospects for US price hikes when its products are shipped to the US from Asia.
Other losers included Tesla, down by almost 6% and Nvidia down by more than 6%.
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3:54
PM: It’s ‘a new era’ for trade and economy
Many retail stocks including those for Target and Footlocker lost more than 10% of their respective market values.
The European Union is expected to retaliate in a bid to put pressure on the US to back down.
The prospect of a tit-for-tat trade war saw the CAC 40 in France and German DAX fall by more than 3.4% and 3% respectively.
The FTSE 100, which is internationally focused, was 1.6% lower by the close – a three-month low.
Financial stocks were worst hit with Asia-focused Standard Chartered bank enduring the worst fall in percentage terms of 13%, followed closely by its larger rival HSBC.
Among the stocks seeing big declines were those for big energy as oil Brent crude costs fell back by 6% to $70 due to expectations a trade war will hurt demand.
The more domestically relevant FTSE 250 was 2.2% lower.
A weakening dollar saw the pound briefly hit a six-month high against the US currency at $1.32.
There was a rush for safe haven gold earlier in the day as a new record high was struck though it was later trading down.
Sean Sun, portfolio manager at Thornburg Investment Management, said of the state of play: “Markets may actually be underreacting, especially if these rates turn out to be final, given the potential knock-on effects to global consumption and trade.”
He warned there was a big risk of escalation ahead through countermeasures against the US.
Sandra Ebner, senior economist at Union Investment, said: “We assume that the tariffs will not remain in place in the announced range, but will instead be a starting point for further negotiations.
“Trump has set a maximum demand from which the level of tariffs should decrease”.
She added: “Since the measures would not affect all regions and sectors equally, there will be winners and losers as in 2018 – although the losers are more likely to be in the EU than in North America.
“To protect companies in Europe from the effects of tariffs, the EU should not respond with high counter-tariffs. In any case, their impact in the US is not likely to be significant. It would be more efficient to provide targeted support to EU companies in the form of investment and stimulus.”
British companies and business groups have expressed alarm over President Donald Trump’s 10% tariff on UK goods entering the US – but cautioned against retaliatory measures.
It comes as Business Secretary Jonathan Reynolds launched a consultation with firms on taxes the UK could implement in response to the new levies.
A 400-page list of 8,000 US goods that could be targeted by UK tariffs has been published, including items like whiskey and jeans.
On so-called “Liberation Day”, Mr Trump announced UK goods entering the US will be subject to a 10% tax while cars will be slapped with a 25% levy.
The government’s handling of tariff negotiations with the US to date has been praised by representative and industry bodies as being “cool” and “calm” – and they urged ministers to continue that approach by not retaliating.
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5:07
The latest numbers on tariffs
Business lobby group the CBI (Confederation of British Industry) said: “Retaliation will only add to supply chain disruption, slow down investment, and stoke volatility in prices”.
Industry body the British Retail Consortium (BRC) also cautioned: “Retaliatory tariffs should only be a last resort”.
‘Deeply troubling’
While a major category of exports, in the form of services – like finance and information technology (IT) – has been exempted from the tariffs, the impact on UK business is expected to be significant.
Mr Trump’s announcement was described as “deeply troubling for businesses” by the CBI’s chief executive Rain Newton-Smith.
The Federation of Small Businesses (FSB) also said the tariffs were “a major blow” to small and medium companies (SMEs), as 59% of small UK exporters sell to the US. It called for emergency government aid to help those affected.
“Tariffs will cause untold damage to small businesses trying to trade their way into profit while the domestic economy remains flat,” the FSB’s policy chair Tina McKenzie said. “The fallout will stifle growth” and “hurt opportunities”, she added.
Companies will need to adapt and overcome, the British Export Association said, but added: “Unfortunately adaptation will come at a cost that not all businesses will be able to bear.”
Watch dealer and component seller Darren Townend told Sky News the 10% hit would be “painful” as “people will buy less”.
“I am a fan of Trump, but this is nuts,” he said. “I expect some bad months ahead.”
Industry body Make UK said the 25% tariffs on cars, steel and aluminium would in particular be devastating for UK manufacturing.
Cars hard hit
Carmakers are among the biggest losers from the world trade order reshuffle.
Auto industry body the Society of Motor Manufacturers and Traders (SMMT) said the taxes were “deeply disappointing and potentially damaging measure”.
“These tariff costs cannot be absorbed by manufacturers”, SMMT chief executive Mike Hawes said. “UK producers may have to review output in the face of constrained demand”.
The new taxes on cars took effect on Thursday morning, while the measures impacting car parts are due to come in on 3 May.
Economists immediately started scratching their heads when Donald Trump raised his tariffs placard in the Rose Garden on Wednesday.
On that list he detailed the rate the US believes it is being charged by each country, along with its response: A reciprocal tariff at half that rate.
So, take China for example. Donald Trump said his team had run the numbers and the world’s second-largest economy was implementing an effective tariff of 67% on US imports. The US is responding with 34%.
How did he come up with that 67%? This is where things get a bit murky. The US claims it studied its trading relationship with individual countries, examining non-tariff barriers as well as tariff barriers. That includes, for example, regulations that make it difficult for US exporters.
However, the actual methodology appears to be far cruder. Instead of responding to individual countries’ trade barriers, Trump is attacking those enjoying large trade surpluses with the US.
A formula released by the US trade representative laid this bare. It took the US’s trade deficit in goods with each country and divided that by imports from that country. That figure was then divided by two.
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So, in the case of China, which has a trade surplus of $295bn on total US exports of $438bn, that gives a ratio of 68%. The US divided that by two, giving a reciprocal tariff of 34%.
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0:58
PM will ‘fight’ for deal with US
This is a blunt measure which targets big importers to the US, irrespective of the trade barriers they have erected. This is all part of Donald Trump’s efforts to shrink the country’s deficit – although it’s US consumers who will end up paying the price.
But what about the small number of countries where the US has a trade surplus? Shouldn’t they actually be benefiting from all of this?
That includes the UK, with whom the US has a surplus (by its own calculations) of $12bn. By its own reciprocal tariff formula, the UK should be benefitting from a “negative tariff” of 9%.
Instead, it has been hit by a 10% baseline tariff. Number 10 may be breathing a sigh of relief – the US could, after all, have gone after us for our 20% VAT rate on imports, which it takes issue with – but, by Trump’s own measure, we haven’t got off as lightly as we should have.