Libel damages for Harrods chief

Mohamed Al Fayed has accepted libel damages over a report he was under such financial pressure he could be forced to sell Harrods.

His solicitor told Mr Justice Eady the claim is untrue and caused considerable distress and damage.

Mr Al Fayed had brought High Court proceedings over an article in Financial Mail on Sunday, and a supplement, The Rich Report 2001: The Definitive Guide to Wealth.

The article stated that Harrods was for sale, that Mr Al Fayed was under pressure to reduce group debts of £300m and that Harrods Holdings debts had risen by £50m to £350m.

The report repeated some of these statements and claimed Mr Al Fayed was under such financial pressure that he could be forced to sell Harrods in order to support his larger business empire.

Laurence Harris says Associated Newspapers Ltd accepts both articles were untrue and at the time of the second publication, provisions were already in place for any company borrowings to be refinanced by routine arrangements.

They withdrew the statements unreservedly and apologised to Mr Al Fayed. They also agreed to pay him substantial undisclosed damages - which Mr Al Fayed is donating to charity - and his legal costs.