Harrods boss apologises and says Mohamed al Fayed ‘presided over toxic culture of secrecy’ and ‘sexual misconduct’
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.”
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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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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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‘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.
One of the world’s largest investment firms has waded into the fight over the future of Thames Water, the water utility which is racing to stay afloat.
Sky News has learnt that KKR is in talks with Thames Water and its advisers about participating in a £3bn share sale which forms part of a wider recapitalisation plan.
City sources said this weekend that KKR, which has more than $550bn of assets under management, was among a handful of parties which had accessed a data room for potential investors.
Rothschild, the investment bank, is running a process to raise around £3bn from the sale of an equity stake in Thames Water, which is grappling with a debt mountain of as much as £19bn.
Other investors which have expressed interest in acquiring newly issued shares in the water company include Carlyle and Castle Water, the latter of which is controlled by Graham Edwards, the Conservative Party treasurer.
Global Infrastructure Partners, which is owned by BlackRock, Brookfield and Isquared are also reported to have lodged an interest, although sources said that the latter two were unlikely to play any further role in the process.
The crisis at Thames Water is presenting Sir Keir Starmer’s administration with a challenge as the debt-laden company attempts to avert temporary nationalisation.
Insiders said that KKR was “a serious player” in the equity process being run by Thames Water, although its outcome hinges on a final determination by Ofwat, the industry regulator, which is due by January at the latest.
Thames Water – and other suppliers across Britain – wants to hike bills and is demanding leniency from Ofwat on fines for past transgressions.
One obstacle to KKR buying a big stake in Thames Water, which has more than 15m customers, may be its 25% holding in Northumbrian Water.
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Under Ofwat’s mergers regime, the Competition and Markets Authority would need to review the deal, although there would not be an automatic prohibition.
The share sale process is being run in parallel to an attempt to raise up to £3bn in debt financing from hedge funds and other investors.
A battle has broken out between the holders of Thames Water’s class A bonds, which account for the bulk of its borrowings, and its riskier class B debt.
Both sets of bondholders have submitted proposals to the company, with the class A’s arguing that theirs is more certain and the class B’s arguing that theirs will save the company £380m or more in fees and interest over a 12-month period.
Thames Water has already endorsed the class A group’s offer, with an initial £1.5bn of funding to be delivered immediately.
The class A bondholders are now trying to secure backing for their proposal within the next fortnight.
Their group, which includes the American hedge funds Elliott Advisers and Silverpoint, would earn in the region of £650m during the first year of the financing.
One area of controversy is likely to be any incentive plan for Thames Water bosses, led by chief executive Chris Weston, as part of a deal to give the company a stay of execution.
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September: Thames Water boss says he can ‘save’ company
Last month, the environment secretary, Steve Reed, established an independent review of the industry that will look at far-reaching reforms.
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It was unclear this weekend which of KKR’s funds was participating in the Thames Water equity-raise.
The firm owns John Laing, an infrastructure investor, which it took private in 2021.
It has also owned South Staffordshire, another water company, selling its 75% interest in 2018.
KKR declined to comment.
The business secretary will next week hold talks with dozens of private sector bosses as the government contends with a significant corporate backlash to Labour’s first fiscal event in nearly 15 years.
Sky News has learnt that executives have been invited to join a conference call on Monday with Jonathan Reynolds, in what will represent his first meaningful engagement with employers since Wednesday’s budget statement.
Rachel Reeves, the chancellor, unsettled financial markets with plans for billions of pounds in extra borrowing, and unnerved business leaders by saying she would raise an additional £25bn annually by hiking their national insurance contributions.
An increase in employer NICs had been trailed by officials in advance of the budget, but the lowering of the threshold to just £5,000 has triggered forecasts of a wave of redundancies and even insolvencies across labour-intensive industries.
Sectors such as retail and hospitality, which employ substantial numbers of part-time workers, have been particularly vocal in their condemnation of the move.
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On Friday, the Financial Times published comments made by the chief executive of Barclays in which he defended Ms Reeves.
“I think they’ve done an admirable job of balancing spending, borrowing and taxation in order to drive the fundamental objective of growth,” CS Venkatakrishnan said.
His was a rare voice among prominent business figures in backing the chancellor, however, with many questioning whether the government had a meaningful plan to grow the economy.
Mr Reynolds held a similar call with business leaders within days of general election victory, and over 100 bosses are understood to have been invited to Monday’s discussion.
A spokesman for the Department for Business and Trade declined to comment ahead of Monday’s call.
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