Fayed keeping Harrods afloat

Harrods owner Mohamed Fayed is using his personal fortune to finance the Knightsbridge store after a downturn in the number of shoppers since 11 September.

Mr Fayed has been using his oil and mining interests to help fund Harrods, as well as his other businesses. In spite of this, the Egyptian-born businessman says he has "no problems with cash".

Mr Fayed, 69, told the Financial Times that Harrods would make an operating profit of £30 million for the year up to January 2002, rising to up to £65 million this year. But Harrods later revised the figures, saying profits for last year would be less than the previous year's £29.1 million and would only increase to about £30 million this year. The accounts have not yet been signed off.

This month Mr Fayed was forced to close Punch magazine because of financial losses despite his investment of £16 million.