History of Harrods department store
London department store Harrods has been sold by its owner Mohammed Al Fayed to the Qatari royal family for £1.5bn.
The Knightsbridge store was rebuilt to its current design after a fire in 1880 Recognised for its celebrity-endorsed sales, food hall and signature green bags, Harrods is one of the world's largest and most famous department stores.
With more than a million square feet (90,000 sq m) of space, Harrods sells luxury items across seven floors and 330 departments.
Its motto is Omnia Omnibus Ubique - All Things for All People, Everywhere - and the store attracts 15 million customers each year.
The Knightsbridge store was established in 1849 by Charles Henry Harrod. Beginning in a single room and employing two assistants and a messenger boy, it mainly sold tea and groceries.
Harrods steadily expanded, and by 1880 was a thriving department store, offering everything from medicines and perfumes to clothing and food and attracted wealthy customers.
Its expansion suffered a knock in 1883 when a fire destroyed the store. This did not halt the owners, however, who duly rebuilt the store, with the help of architect Charles William Stephens, into what it is today.
Known for its grandeur, when the store reopened it had a palatial style, featuring a frontage clad in terracotta tiles adorned with cherubs, swirling Art Nouveau windows and was topped with a baroque-style dome.
Harrods became a public company in 1889 and by the 1890s it had established a bank and estate agency.
It featured one of the world's first escalators in 1898.
During World War II, the store transformed itself from selling luxury goods to making uniforms, parachutes and parts for Lancaster bombers.
In 1959, High Street department store group House of Fraser bought Harrods.
Bitter feud
In 1985 the store returned to private ownership when Egypt-born Mr Al Fayed and his brother Ali bought House of Fraser for £615m, snatching it from mining conglomerate Lonrho.
Mr Al Fayed bought Harrods with his brother in 1985 The takeover bid was bitterly fought as Mr Al Fayed had previously served on Lonrho's board but left nine months later after a disagreement.
Lonrho's director, the late Tiny Rowland, took his campaign against the takeover to the Department of Trade who duly held an inquiry.
The subsequent report, issued in 1990, concluded that the Al Fayeds had lied about their background and their wealth.
"We are satisfied that the image they created between November 1984 and March 1985 of their wealthy Egyptian ancestors was completely bogus."
The public feud between the businessmen appeared to reach reconciliation in 1993 however Mr Rowland later accused Mr Al Fayed of breaking into a safety deposit box held at the store.
This dispute was later settled with Mr Rowland's wife after his death.
Dress code
Harrods has twice experienced bomb attacks by the IRA. In 1983, six people were killed and 75 injured after a car exploded in an adjacent street while in 1993, four were injured when a bomb was placed in a litter bin outside.
The store controversially introduced a dress code in 1989 which included a ban on wearing high-cut, Bermuda or beach shorts; swimwear; cycling shorts and flip flops or thong sandals. Bare midriffs as well as dirty or unkempt clothing are also not allowed.
In 1994, the Al Fayed brothers let go of the other House of Fraser businesses in a stock market flotation, keeping only Harrods.
By 2000, the Harrods empire had expanded to take in outlets at airports and on the QE2 cruise ship.
Mr Al Fayed also added his own personal touches to the store, such as the Egyptian Room, which is adorned with several busts of himself.
Following the death of his son, Dodi, and Diana, Princess of Wales, in a car crash in August 1997, Mr Al Fayed created a memorial to the couple in the store.
He also made a series of allegations about the circumstances of the death and the British Royal family.
In 2000, Mr Al Fayed decided to not renew his royal warrants, saying that since neither the Queen, nor Prince Charles had shopped in Harrods for several years, continuing to display the Royal Crescent would be "totally misleading and hypocritical".
Harrods now employs about 4,000 staff. The sale includes all parts of the group, including Harrods Estates and the charter aircraft service Air Harrods.
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Mohammed Al Fayed sells Harrods store to Qatar Holdings
 Mohammed Al Fayed is expected to continue at Harrods in some capacity |
Mohammed Al Fayed has sold London department store Harrods to the Qatari royal family's investment company for a reported £1.5bn ($2.3bn).
The Egypt-born tycoon acquired the business in Knightsbridge following a £615m takeover in 1985.
Ken Costa, an adviser to the deal with Qatar Holdings, said Mr Al Fayed was retiring "to spend more time with his children and grandchildren".
He will continue to promote the store in the role of honorary chairman.
But Mr Al Fayed will not be involved in running the company on a day-to-day basis.
 | HARRODS  The store has over one million square feet (90,000 sq m) of selling space and 330 departments The Harrods motto is Omnia Omnibus Ubique - All Things for All People, Everywhere It was established in 1849 15 million people shop there each year  |
The sale, signed in the early hours of 8 May, will include all parts of the Harrods group, including Harrods Estates and a charter aircraft service.
Qatar Holdings is the investment arm of the emirate's sovereign wealth fund, Qatar Investment Authority.
Although it failed in bid for Sainsbury's in 2007, it is the third-largest shareholder in car-maker VW and has stake in Porsche.
Its chairman, Sheikh Hamad Bin Jassim Bin Jabr Al-Thani, who is also Qatar's prime minister, said Harrods would add "much value" to its portfolio of investments and generate "good and stable returns as a business".
He added: "It's a historical place. I know it's important, not only for the British people but it is important for the tourism."
His vice-chairman, Dr Hussain Ali Al-Abdulla, said the acquisition was a "landmark transaction".
The pair were given a tour of the store by Mr Al Fayed before a news conference in the fourth floor Georgian Restaurant.
Mr Costa, chairman of asset managers Lazard International, who advised the Al Fayed family trust on the sale, said Qatar Holding had been "specifically chosen" by Mr Al Fayed because he believed it had the "vision and financial capacity" to support the long-term growth of the store.
"In reaching the decision to retire, he wished to ensure that the legacy and traditions that he has built up in Harrods would be continued, and that the team that he has built up would be encouraged to develop the foundations that he has laid," Mr Costa added.
Reports in March had suggested that the Gulf-based investor, which works on behalf of the royal family in the Arab emirate of Qatar, had approached Mr Al Fayed about a possible deal.
However, staff were assured at the time that the store was not for sale.
Repeatedly refused
Mr Al Fayed's UK business interests include the Premiership football club Fulham FC and a recent rich list put his fortune at £650m.
| QATAR HOLDING Investment arm of the emirate's sovereign wealth fund, Qatar Investment Authority (QIA) Parent company's estimated assets more than £40.5bn Sold around £1.4bn of shares in Barclays bank last October Failed in bid for Sainsbury's in 2007 Third-largest shareholder in car-maker VW and has stake in Porsche |
During the 1980s, a battle for control of the store formed part of a long-running feud between Mr Al Fayed and the late businessman Tiny Rowland.
Mr Rowland later accused his business rival of breaking into a safety deposit box stored at Harrods.
Egyptian-born Mr Al Fayed waged a 10-year campaign in an attempt to prove that Princess Diana and his son Dodi, who died in a Paris car crash in 1997, were murdered in a conspiracy.
Despite living in Britain for decades, the multi-millionaire businessman has repeatedly been refused a UK passport.
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