The Libyan authorities staged a “repugnant anti-semitic” campaign in an attempt to force the closure of a Marks & Spencer store in Tripoli according to US diplomatic cables leaked through WikiLeaks.

The cable warned that there was a risk of irretrievable damage to relations between Libya and the UK as a result of the hostility to the franchised store, which opened in 2008 and is still trading.

The shop was subjected to what the cable described as “persistent anti-semitic rhetoric” and there were fears that a businessman connected with it could be murdered in a fake car crash, The Guardian reported.

On two occasions the shop was closed by the authorities and employees detained for questioning. There were allegations that Marks & Spencer was a “Zionist Entity” which supported “the killing of Palestinians”.

It is understood however that the row was “largely due to a personal grievance” between the businessman and the Libyan prime minister, who wanted the franchise to be sold to government officials.

The cable, dating from 2008, said that “the fate of the store and the businessman are closely intertwined, and the ensuing test of wills reportedly has the potential to end in violence. The UK embassy, which is closely involved, has flatly told us they view the ultimate outcome of the case as an important bellwether of the investment climate in Libya and will advise potential UK investors accordingly.”