Harrods is seeking to remove the widow and daughters of the late businessman Mohammed Al Fayed as executors of his £118 million estate, arguing they cannot impartially manage compensation claims from hundreds of women who have accused him of sexual abuse. The luxury department store has applied to the High Court to replace Heini Wathen-Fayed and her daughters, Camilla and Jasmine Fayed, with independent lawyers.
This legal action marks the first court proceedings related to the scandal, with both alleged survivors and Al Fayed's widow present in the courtroom. Following the businessman's death in 2023 at the age of 94, hundreds of women came forward with allegations of rape and serious sexual abuse. However, the survivors are divided on whether Al Fayed's family should be removed from their roles. The majority of the 270 women represented by KP Law do not support the bid, while approximately 60 women represented by Leigh Day do, according to reports.
Lawyers for Harrods informed the court that the estate is at serious risk of insolvency, with its total worth valued at £118 million against estimated damages claims of around £150 million sought by KP Law on behalf of more than 270 survivors. The legal team for the Fayeds has contested these figures and Harrods' reasons for the application. They also stated that the majority of victims represented by KP Law oppose the removal, as the estate is actively engaging with them to resolve claims. Ms. Wathen-Fayed's legal representatives have declared that she and the other executors are prepared to address the claims.
Penelope Reed KC, representing Harrods, argued that the family members, acting as both beneficiaries and executors, are in a "position of conflict" and stand to lose from insolvency. She asserted that they cannot handle the claims in an "objective" and "dispassionate" manner, noting that progress has been slow and that claims from one law firm appear to be receiving "preferential treatment." Reed stated that an independent executor could facilitate progress and that Harrods is not motivated by a desire to shift the burden of compensation claims onto the Fayed family.
Al Fayed's estate is understood to comprise overseas assets worth £118 million, primarily held through Levantine Investments Holdings Ltd in the British Virgin Islands. This value is largely derived from a loan note owed by Mafco Holdings, the firm through which Al Fayed previously owned Fulham FC. Lawyers for Harrods emphasized that if the estate becomes insolvent, it is the estate itself that would bear the brunt of the claims, not the family.
Stephen Moverley Smith KC, representing Mrs. Wathen-Fayed and Camilla Fayed, countered that the "stringent threshold" for removing estate executors had not been met. He stated that the estate is now "willing" to settle claims, a shift from an earlier hearing where Ms. Wathen-Fayed reportedly expressed disbelief in the abuse allegations. Tracey Angus KC, for Jasmine Fayed, indicated her client's desire for claims to be handled "fairly and expeditiously" but raised concerns about the lack of information regarding proposed independent executors. Jasmine's brother, Omar Al Fayed, is reportedly challenging an amendment to his father's will that removed him as an executor, and he supports the appointment of independent administrators. His brother, Karim Al Fayed, opposes the change.
The case stems from compensation claims initiated after Harrods established a redress scheme for abuse survivors, offering up to £385,000 from an initial £60 million fund. While over 250 individuals have engaged with this scheme, with more than 110 compensated, over 300 other women have opted for legal action, citing concerns about conflicts of interest and the scheme's process, which required claimants to waive further liability.
