Fayed using own cash to fund Harrods

MOHAMED Fayed is using his personal fortune to finance the Harrods store in London's Knightsbridge after a downturn in the number of shoppers since 11 September. 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 said he has 'no problems with cash'.

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

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