Changing of the Guard At Harrods As Al-Fayed Sells Up

Egyptian Mohamed Al-Fayed twenty-five reign of the department store Harrods came to an end on Saturday morning, as news filtered through of his decision to sell the chain, to the Qatar Royal Family’s investment company.  The deal, around £1.5billion will give Al-Fayed the chance to invest more time into Fulham football club, and the opportunity to spend more time with his family and grandchildren.

Although he will no longer be involved in the day-to-day running of the company, Al-Fayed will still promote the store in a new executive role of honorary chairman.  The deal also involves other areas of Harrods, such as the chartered airline and Harrods Estates.  Mohamed Al-Fayed bought the Harrods department store on Knightsbridge way back in 1985, in a successful takeover, costing some £615million.  His recent placing in the Sunday Times Rich List saw his earnings come in at around £650million.  His name has never really been out of the headlines, since the tragic death of his son, Dodi in the tragic car crash in Paris on August 31^st 1997, which also claimed the life of Diana, Princess of Wales.  Since then, Al-Fayed had waged a campaign, which has been lasting since 1997, claiming that Dodi and Diana were murdered as part of a conspiracy plot.  Despite living in Britain for over three decades, Mr. Al-Fayed has always been refuted a UK passport.  When Al-Fayed acquired control of Harrods in the 1980’s, he was also involved in a bitter dispute with late businessman Tiny Rowland, with allegations of tax evasion and stealing of essential documents in the control battle.

For Qatar Holding, the investment arm behind the Royal Family, the acquisition of Harrods is another note onto their increasing UK portfolio.  They failed in a lucrative takeover attempt of supermarket chain, Sainsbury’s three years ago.  However, they own significant stakes in the German manufacturer Volkswagen and Porsche.  Last October, they sold £1.4billion of their shares in Barclays Bank, and their assets are estimated at £40.5billion.  Harrods store was established in 1849 and over 15million shoppers are expected to pass through every year.  The store has 330 departments, ranging from electrical goods and toys, to luxurious coffee shops and restaurants.  The motto for the company is ‘Omnia Omnibus Ubique,’ – All Things for All People, Everywhere.

For Harrods, this is a clear changing of the guard and for Mohamed Al-Fayed, the end of a successful era at the helm.  However, with Qatar Holding firmly behind Harrods now, plus they have the ability to strengthen its financial clout with its new venture, this takeover should go through swiftly, without much, if any disruption at all for regular shoppers.