James McArthur, former chief executive of Harrods, has addressed allegations surrounding the late Mohamed Fayed, describing the former owner's behavior as "abhorrent" while stating he was unaware of any sexual abuse during his tenure. McArthur, who led the iconic London department store for a brief period in 2008, provided a written statement to the BBC expressing his shock at the recent allegations.
Five women have come forward with accusations of rape against Fayed, who passed away in 2023 at the age of 94. Additional individuals have alleged sexual misconduct. McArthur emphasized that while professional relationships with Fayed were often dysfunctional, he had no knowledge of sexual abuse and would have taken action if he had been aware.
Harrods, a retail institution founded in 1849, has initiated an internal review in response to the allegations. The store, which occupies a 5-acre site and boasts over 330 departments, is examining whether any current staff members were involved in the alleged incidents. This action follows a former employee's claim that a manager, still employed by Harrods, failed to investigate a complaint about Fayed's inappropriate behavior.
The company has stated that its internal review is supported by external counsel and that a non-executive committee of the Board has been established to address issues arising from the allegations. Harrods is also cooperating with the Metropolitan Police in their inquiries.
In a significant development, sources within Harrods have revealed that the company has accepted vicarious liability for Fayed's conduct. This decision pertains to claims brought to the store's attention since 2023, with settlements reached for the majority of cases. Harrods has emphasized that its settlement process was designed in consultation with independent external counsel and experts in personal injury litigation to ensure impartial outcomes for the victims.
"Harrods is in direct communication with the Metropolitan Police to ensure we are offering our assistance with any of their relevant inquiries."
The allegations and subsequent actions have cast a shadow over the legacy of Fayed, who owned Harrods from 1985 to 2010. During his ownership, the store continued to be a symbol of luxury retail, known for its motto "Omnia Omnibus Ubique" (All Things for All People, Everywhere) and its vast array of products and services.
As the investigation continues, Harrods faces the challenge of addressing its past while maintaining its status as a premier shopping destination. The store, which employs over 5,000 staff from 86 different nationalities, must navigate this crisis while preserving its reputation for excellence and innovation in retail.
The ongoing situation serves as a reminder of the importance of corporate responsibility and the need for robust systems to address and prevent workplace misconduct. As Harrods moves forward, the focus remains on supporting the alleged victims and ensuring transparency in its internal processes.