Harrods moves to strip Mohammed Al Fayed's widow and daughters of control of his £118million estate amid sex abuse claims from 300 women

Mohammed Al Fayed's widow and daughters should be removed as executors of the late businessman's estate because they cannot fairly handle compensation claims from more than 300 women he abused, a court has heard.Harrods has applied to replace Heini Wathen-Fayed and daughters Camilla and Jasmine Fayed with independent lawyers. It is seeking money from the estate to pay compensation to those abused by AlFayed during his tenure as owner.The hearing is the first time that any proceedings related to the Al Fayed scandal have made it to court – with both survivors of his abuse and his widow in the courtroom on Tuesday. Hundreds of women came forward to accuse the 94-year-old of rape and serious sexual abuse following his death in 2023.But survivors are split on whether Al Fayed's surviving family should be removed. The majority of the 270 women represented by KP Law (KPL) do not support the bid while others do, including 60 women represented by Leigh Day, the High Court heard on Tuesday.KPL is seeking an estimated £150million of damages on behalf of more than 270 survivors. Mohamed Al Fayed (second right) pictured with his sons Omar (left) and Karim (second left), his wife Heini Wathen-Fayed (centre) and daughter Camilla Al Fayed (right) at a party to celebrate 25 years as Harrods chairman in September 2010 The businessman's daughter Jasmine Al Fayed waits for a taxi outside Harrods in July 2008But lawyers for Harrods told the court the estate is at serious risk of insolvency, as it is worth just £118million.Lawyers for the Fayeds have denied this, challenging the amount sought and Harrods' reasons for its application. The majority of victims represented by KP Law also oppose the move, the court heard, because the estate is actively engaging with them to resolve claims.Ms Wathen-Fayed has also distanced herself from the historical view that claims of abuse at the hands of her husband were 'untrue', with lawyers declaring that she and the other executors are 'ready, willing and able' to resolve claims.The Finnish socialite and ex-model was among those sat in a stuffy and densely packed courtroom alongside abuse survivors and their supporters, some of whom stepped out during the hearing, visibly upset.Intense media interest in the case delayed proceedings by a quarter of an hour while a remote link was established for those standing at the edges of the room after the courtroom ran out of chairs.Penelope Reed KC, for Harrods, told the court the family was in a 'position of conflict' as both beneficiaries and executors who stand to lose out from insolvency.They could not, she said, deal with the claims brought by survivors in an 'objective' and 'dispassionate' way, and that there was evidence that KPL's claims were receiving 'preferential treatment'.'An independent executor would be able to make some progress. Not a great deal of progress has been made,' she said.The court heard that Al Fayed's estate, which is held in trust by Ms Wathen-Fayed, had UK assets with a net value of 'nil', and overseas assets worth £118million – the majority of which is in Levantine Investments Holdings Ltd, a firm registered in the British Virgin Islands.Levantine's £111million value is exclusively derived from a £97million loan note owed by Mafco Holdings – the Bermuda firm through which Al Fayed owned Fulham FC between 1997 and 2013 – plus interest.Ms Reed KC continued: 'Putting it in the simplest way, we have an estate that is going to be worth £118million, if it can be realised. 'And we have a law firm, in answer to a request, this is the figure they came up with, which is [seeking] £150million.'We would say that the estate may be insolvent. We would particularly say that is the case because the executors here appear to be in denial about that.'It's not in Harrods' interests that the estate be insolvent. It affects them and other creditors, of course. That is why we believe we need an independent executor here.'The barrister said anyone who believed Harrods was motivated by a desire to lay the bill for claims at the Fayeds' door had 'misunderstood' the situation.She added: 'We would say it is of little comfort in terms of solvency if, at the end of the day, it is the estate that bears the brunt of the claims.' Hundreds of alleged victims came forward to accuse the Al Fayed of rape and serious sexual abuse following his death aged 94 in 2023She said two potential independent administrators had been identified and that Harrods would be willing to provide an indemnity until the estate's money could be realised.Referencing the 'special circumstances' that could justify removing the Fayeds as executors, she added: 'It is very hard to imagine more special circumstances than those in this case.' But Stephen Moverley Smith KC, for Mrs Wathen-Fayed and Camilla Fayed, said that the 'stringent threshold' for replacing the executors of the estate had not been met.He told the court the estate was now 'willing' to settle claims from survivors, after a previous hearing was told that Ms Wathen-Fayed 'did not believe' claims of abuse and would not support settlements.He said in written submissions: 'Although Heini initially and naturally expressed doubts about the veracity of the claims against her late husband, everything that has happened subsequently shows that the executors are ready, willing and able to resolve the claims.'Alongside Jasmine and Camilla, Ms Wathen-Fayed had two sons with the Harrods boss, Karim and Omar.Tracey Angus KC, in written submissions on behalf of Jasmine, said her client wanted to see claims 'dealt with fairly and expeditiously', but had concerns over a lack of information on proposed independent executors.She added that Omar is also challenging an amendment to his father's will that saw him replaced as an executor by Jasmine.The court heard he supports the appointment of independent administrators. Al Fayed's other son Karim is opposed to the change.The case is rooted in compensation claims launched against Harrods and the Al Fayed estate after the store established a redress scheme for those who had suffered abuse.It offered survivors up to £385,000 from a pot initially valued at £60million. Harrods says more than 250 people have 'engaged' with the scheme and, as of last month, more than 110 people have been compensated. Written submissions to the High Court suggest £6.1million has been paid out to date.But more than 300 other women have opted to take the legal route after rejecting the scheme, citing concerns of a conflict of interest and how the scheme was run: claimants were required to sign a waiver absolving Harrods of any further liability.The hearing, before Chief Master Karen Shuman, continues tomorrow.