Harrods has asked the High Court to remove Mohammed Al Fayed’s widow, Heini Wathen-Fayed, and two of his daughters, Camilla and Jasmine, from their positions as executors of his £118million estate.
The department store wants independent legal professionals appointed to oversee the estate, arguing that the family cannot impartially manage compensation claims brought by hundreds of women who have accused the late businessman of rape and sexual abuse.
The application also seeks access to funds from the estate to help compensate survivors who say they were abused during Al Fayed’s ownership of Harrods.
The case reached court for the first time on Tuesday, with survivors and Al Fayed’s widow attending the hearing.
Survivors Divided Over Proposed Changes
More than 300 women have come forward with allegations of rape and serious sexual abuse against Al Fayed, who died aged 94 in 2023.
However, survivors are divided over whether his surviving family should lose control of the estate.
The High Court heard that most of the 270 women represented by KP Law (KPL) oppose Harrods’ application.
Meanwhile, approximately 60 women represented by Leigh Day support the proposed appointment of independent executors.
KPL is pursuing an estimated £150million in damages on behalf of more than 270 alleged survivors.
Those opposing the application argue that the existing executors are actively engaging with claimants and attempting to resolve compensation demands.
Harrods Warns Estate Could Face Insolvency
Representing Harrods, Penelope Reed KC told the court that the estate faced a serious risk of insolvency, given the amount of compensation being sought.
She argued that the executors were in a position of conflict because they were both beneficiaries of the estate and responsible for administering it.
According to Ms Reed, the family could potentially lose financially if the estate became insolvent, making it difficult for them to approach the compensation claims objectively.
She also raised concerns that claims handled by KP Law appeared to be receiving preferential treatment.
“An independent executor would be able to make some progress.
Not a great deal of progress has been made,” she told the court.
Ms Reed said the estate’s UK assets had a net value of zero, while its overseas holdings were estimated at £118million.
Most of that value is held through Levantine Investments Holdings Ltd, a company registered in the British Virgin Islands.
The company is valued at approximately £111million, largely because of a £97million loan note owed by Mafco Holdings, a Bermuda-registered company, together with accumulated interest.
£150m Compensation Claims Exceed Estate’s Estimated Value
Ms Reed told the court that the estate’s estimated £118million value would depend on whether its assets could successfully be realised.
She compared the figure with the £150million in damages being pursued by KPL, arguing that the potential liabilities could exceed the available funds.
The barrister said the executors appeared to be in denial about the possibility of insolvency and maintained that an independent administrator was necessary.
She also rejected suggestions that Harrods was seeking to shift responsibility for compensation payments onto the Al Fayed family.
According to Ms Reed, appointing independent executors would help protect the interests of the estate, Harrods and other creditors.
She confirmed that two potential independent administrators had already been identified and that Harrods was prepared to provide an indemnity while the estate’s assets were being realised.
Ms Reed described the circumstances surrounding the case as particularly serious, arguing that they justified removing the current executors.
Al Fayed’s Widow Says Family Is Willing to Settle Claims
Lawyers representing Heini Wathen-Fayed and Camilla Fayed disputed Harrods’ application, arguing that the legal requirements for replacing estate executors had not been satisfied.
Stephen Moverley Smith KC told the court that the executors were now prepared to address the survivors’ claims and reach settlements.
His submissions acknowledged that Mrs Wathen-Fayed had initially expressed doubts about the allegations against her late husband.
However, he said subsequent developments demonstrated that she and the other executors were ready and able to resolve the claims.
The legal position follows an earlier hearing at which the court was told that Mrs Wathen-Fayed did not believe the abuse allegations and would not support compensation settlements.
The Finnish socialite and former model attended Tuesday’s proceedings alongside survivors and their supporters.
Al Fayed’s Children Take Different Positions
The proposed changes have also exposed differing positions among Al Fayed’s children.
Jasmine Fayed’s lawyer, Tracey Angus KC, said her client wanted the compensation claims to be handled fairly and without unnecessary delays.
However, Jasmine had concerns about the limited information provided concerning the proposed independent executors.
The court also heard that Omar Al Fayed was challenging an amendment to his father’s will that resulted in him being replaced by Jasmine as an executor.
Omar supports the appointment of independent administrators, while his brother Karim opposes the proposed changes.
Al Fayed had four children with Heini Wathen-Fayed: Camilla, Jasmine, Karim and Omar.
Harrods Redress Scheme Has Paid More Than £6m
The court proceedings follow compensation claims against Harrods and Al Fayed’s estate after the department store introduced a redress scheme for people who experienced abuse.
The scheme initially had a £60million compensation fund and offered eligible survivors payments of up to £385,000.
Harrods told the court that more than 250 people had engaged with the programme, with over 110 receiving compensation as of last month.
Written submissions presented to the High Court indicated that approximately £6.1million had been paid out so far.
However, more than 300 women have chosen to pursue legal action rather than participate in the scheme.
Some claimants have raised concerns about potential conflicts of interest and the way the programme was administered.
Under its terms, participants were required to sign a waiver releasing Harrods from further liability.
High Court Hearing Continues
Tuesday’s proceedings attracted substantial media attention, with the courtroom becoming overcrowded and additional arrangements required for people unable to secure seats.
The hearing was delayed by approximately 15 minutes while a remote link was established for those standing around the packed courtroom.
Some survivors and their supporters also left the room during the proceedings, visibly upset.
The case is being heard by Chief Master Karen Shuman at the High Court.
Proceedings are scheduled to continue on Wednesday, with the court considering Harrods’ request to replace Al Fayed’s widow and daughters with independent administrators.
