Mohammed Al-Fayed’s widow and daughters have been accused of being “reluctant” to disclose the value of his estate as they negotiate sexual abuse claims brought by hundreds of women, the High Court has heard.
Heini Wathen-Fayed and her daughters, Jasmine and Camilla Fayed, aged 71, 41 and 45 respectively, could be removed as executors of the late businessman’s estate after Harrods applied to have them “passed over” by the court.
The department store argues that the family cannot reach settlements with alleged victims in an “objective” manner, particularly because Mr Fayed’s widow previously said she did not accept their allegations.
The Finnish-born former model and her daughters are resisting the attempt to remove them and want to retain control of the estate.
Their lawyers say the family is dealing with survivors in a “dispassionate” way. They also say Ms Wathen-Fayed, who sat just feet from several people who allege they were abused by her husband during all three days of the hearing, now accepts the truth of their claims.
But Penelope Reed KC, representing Harrods, told the High Court that the store did not accept the widow’s “wholesale change of view”.
Ms Reed argued that independent executors would be better placed to examine the estate’s affairs. She also accused the Fayeds of withholding information because, as administrators, they would have an interest in “maximising the value of the estate”.
She told Judge Karen Shuman: “There has been, we would say, a reluctance to provide information about the estate. Whether we are right to be suspicious about that is another matter.
“But this is an estate where the family is so wound up in the value of the estate that this is something an independent executor could investigate.”
Heini Wathen-Fayed leaving the High Court with her legal team on Thursday after the hearing
She is pictured at centre alongside her husband Mohamed Al Fayed, second from right, daughter Camilla and sons Omar and Karim. The brothers disagree over whether she should remain in charge of the estate
Ms Reed said Harrods was still “hazy” about the connection between the estate and Hyde Park Residence Ltd (HPRL). Lawyers for the Fayeds have described the UK company as irrelevant to the estate and “entirely valueless”, with debts of £20million.
Court documents state that Mr Fayed held nominee shares in HPRL. Following his death, those shares were transferred to Prestige Properties SA, a Liechtenstein-based company of which Ms Wathen-Fayed was a director until last year.
Ms Reed added: “We would say there was information provided… but not full information. We don’t accept there has been a change of heart prompted by these proceedings.”
The court has previously been told that the estate is worth between £111million and £118million. Most of that value is held through a British Virgin Islands company, which is owed £97million by a Bermudan business whose shares Mr Al Fayed held in a trust.
The Fayeds’ lawyers said the UK-based assets were worth “nil”. They accused Harrods of embarking on a “fishing expedition” after the store sought further information about the estate through the courts, with all but one of its requests rejected.
In closing submissions, representatives for the family accused Harrods of acting in its own interests as it attempts to recover compensation-related costs from the estate while presenting itself as a “crusader” for alleged victims of its former owner.
Tracey Angus KC, representing Jasmine Fayed, said the store would face an “immediate” conflict of interest if it appointed and paid new executors. She added: “All of this is causing more expense and delay.”
Stephen Moverley Smith KC, representing Ms Wathen-Fayed and Camilla, said: “Have matters been dealt with properly? The answer is plainly yes.
“The executors will be guided by professional advisers on any settlement, and in that they are acting entirely dispassionately. Where necessary they will seek the guidance of the court. And they will do that at their own cost.
“This is an application that should never have been progressed. The case must be dismissed with costs.”
Jasmine Fayed, pictured with her late father in 2006, was initially neutral about Harrods’ application before ultimately backing her family
Al Fayed, pictured in 1999, died three years ago. Hundreds of women have since accused him of crimes including rape, sexual assault and human trafficking
Allegations of sexual abuse, assault, rape and human trafficking were made against the Egyptian-born businessman, who owned Harrods from 1985 to 2010, after his death in August 2023 at the age of 94.
In response, Harrods established a redress scheme offering compensation of up to £385,000 to former employees who said they had been abused. Around 260 people engaged with the scheme before it closed to new applicants.
Harrods says that, by last month, 110 people had received compensation. Court submissions indicate that £6.1million has been paid from a fund worth £57million.
More than 300 people, including those who declined to use the scheme and others who worked for Mr Al Fayed in different roles, are pursuing compensation directly from his estate.
The proceedings have also highlighted divisions among the survivors. Most people seeking damages, including nearly all of the 270 claimants represented by KP Law, oppose Harrods’ application.
There is a similar split within the Fayed family. Mr Al Fayed’s younger son, Omar, who was replaced as an executor under his father’s will by Jasmine, supports Harrods’ application. His older brother Karim opposes it.
Judge Karen Shuman reserved her decision after the hearing extended into a third day. The courtroom ran out of seats as journalists and survivors attended in large numbers.
She said: “This case has been listed for an inordinate amount of time… and I will have some observations to make about that when I give my judgment.”
Ms Wathen-Fayed did not comment to reporters as she left the High Court on Thursday afternoon. Her lawyers guided her into the back of a taxi, where she shielded her face with a large tote bag.
Ms Wathen-Fayed was escorted into a taxi after the hearing. The judge will deliver her ruling at a later date
The widow covered her face with a tote bag as the taxi departed. Her lawyers said she now accepts allegations that her husband abused women
Justin Michaelson, of Quinn Emanuel Urquhart & Sullivan, who represents the widow and Camilla, said they took the allegations against Mr Al Fayed “seriously”.
He said: “The executors are committed to ensuring that whatever process follows is conducted properly and responsibly, and they will make no further comment at this stage.”
Harrods said the case concerned “seeking the independent administration of the Fayed estate for the benefit of all survivor claimants”.
A spokesperson said: “Instead of focusing on compensating survivors, (the Fayeds) have focused on defending their control of the estate.
“Survivors of Fayed’s abuse deserve fair access to justice, and the administration of his estate should serve the interests of all those seeking redress.”
No One Above, a campaign group supporting survivors of abuse, said Ms Wathen-Fayed’s change in position did not resolve the alleged conflict surrounding her role and those of her daughters as executors.
The group said: “The battle over who is ultimately responsible for damages will not be resolved quickly – but survivors’ compensation must not be delayed in the meantime.
“We call on all parties to settle claims quickly, while safeguarding the integrity of evidence in the largest sex trafficking case in Britain’s history.”
Representatives for Jasmine Fayed told Our News Outlet: “Jasmine remains committed to supporting an orderly administration of the estate with care, sensitivity and respect for those affected.”
