Harrods has been sold by Mohamed Al Fayed for £1.5bn to the Qatari royal family.
The Egyptian businessman said in a statement he wished to retire after 25 years in charge of the flagship Knightsbridge department store.
Sky's City editor Mark Kleinman, who broke the story, said the family made an approach for the store several weeks ago but Mr Al Fayed rejected the offer.
However, the owner of the Premiership club Fulham FC had reconsidered the approach.
Ken Costa, chairman of Lazard International, which advised Mr Al Fayed on the deal, said in a statement: "After 25 years as Chairman of Harrods, Mohamed Al Fayed has decided to retire and to spend more time with his children and grand-children.
"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."
He added: "Qatar Holding will become only the fifth owner of Harrods since its creation, in 1840. Qatar Holding was specifically chosen by the Trust as they had both the vision and financial capacity to support the long term successful growth of Harrods."
The Al Fayed brothers bought a 30% stake in Harrods' owner House of Fraser in 1984 from Tiny Rowland and went on to purchase the remaining shares a year later in a bitter £615m takeover battle.
Kleinman said the store, established in 1834 in London's East End, was doing well despite the global recession.
"The business has done very well during the downturn - there has been an influx of money from the Middle East.
"It attracts customers from across the world and therefore it has managed to stay resilient."
The Egyptian businessman said in a statement he wished to retire after 25 years in charge of the flagship Knightsbridge department store.
Sky's City editor Mark Kleinman, who broke the story, said the family made an approach for the store several weeks ago but Mr Al Fayed rejected the offer.
However, the owner of the Premiership club Fulham FC had reconsidered the approach.
Ken Costa, chairman of Lazard International, which advised Mr Al Fayed on the deal, said in a statement: "After 25 years as Chairman of Harrods, Mohamed Al Fayed has decided to retire and to spend more time with his children and grand-children.
"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."
He added: "Qatar Holding will become only the fifth owner of Harrods since its creation, in 1840. Qatar Holding was specifically chosen by the Trust as they had both the vision and financial capacity to support the long term successful growth of Harrods."
The Al Fayed brothers bought a 30% stake in Harrods' owner House of Fraser in 1984 from Tiny Rowland and went on to purchase the remaining shares a year later in a bitter £615m takeover battle.
Kleinman said the store, established in 1834 in London's East End, was doing well despite the global recession.
"The business has done very well during the downturn - there has been an influx of money from the Middle East.
"It attracts customers from across the world and therefore it has managed to stay resilient."
-Yahoo UK News.
