The sex offender Mohamed Fayed had sex with Harrods employees or sex workers every day at 4 p.m. – and even gave the whole thing a code name

By Ashley Armstrong, Business Editor

HARRODS has survived world wars, two bombings and a fire – but now its reputation could be tarnished forever.

There are concerns that wealthy customers may not want to be seen carrying the distinctive green and gold bags after the upscale store admitted it failed to protect its staff from sex offender Mohamed Fayed.

Retail consultant Mary Portas told The Sun: “The rumours were rife and he was a horror. I hope the business is not affected but those who surrounded and suppressed this will be held to account.”

Harrods is struggling to come to terms with its former owner, with Fayed's memories lingering throughout the store.

His garish Egyptian escalator, which opened in 1997, still dominates the Knightsbridge department store from the ground floor to the fifth floor.

Fayed's former deputy, Michael Ward, had been chief executive since 2005 – five years before his boss sold the company to the Qatari royal family for £1.5 billion.

Despite his sincere apology to the staff, it would be understandable that the Qataris would want a change in their face.

Accounts this month show the Qatari company paid out a dividend of £180 million last year, even though its profits fell 35 percent to £111.5 million following pension changes.

In a sign of its appeal, sales rose 8.2 percent to £1 billion last year while other luxury stores such as Harvey Nichols struggled.