Harrods has allocated over £60 million to a redress scheme designed to compensate alleged victims of historical abuse.
It is anticipated that more than 100 individuals formerly associated with the luxury retailer could each claim up to £385,000 through the initiative, which remains open until March 2026.
The scheme, initiated in March, seeks to provide restitution to those alleging abuse by the late Mohamed Al Fayed, who formerly owned Harrods until his passing in 2023.
Mr. Al Fayed, who controlled the prestigious department store from 1985 to 2010, has been accused of rape and sexual assault by numerous women. The Metropolitan Police have reported that 146 individuals have come forward as part of their investigation into the allegations.
Of the total allocation, £57 million is earmarked for direct compensation to alleged victims, with an additional £5.3 million designated for covering legal and administrative expenses, culminating in a total of £62.3 million.
Michael Ward, Managing Director of Harrods, has indicated that “more than 100 survivors” have engaged with the scheme since its inception.
Mr. Ward further stated, “Compensation awards and interim payments commenced for eligible survivors at the close of April 2025, and the scheme will remain active until 31 March 2026.”
According to a statement released by Harrods in March, the scheme provides general damages of £200,000 to each qualifying claimant. Depending on whether claimants agree to undergo an assessment by a consultant psychiatrist, they could receive up to £385,000 in compensation, inclusive of treatment costs, or up to £150,000 without a medical evaluation.
The establishment of this scheme contributed significantly to Harrods recording a £34.3 million loss in its most recent full-year accounts, a stark contrast to the £111 million profit reported in the preceding year.
In its formal announcement of the scheme, Harrods affirmed, “While we cannot rectify the past, we are resolutely committed to upholding our organizational values and ensuring that such conduct is never repeated in the future.”
Eligibility for the scheme requires claimants to provide evidence of sexual assault and/or improper testing, along with demonstrating Harrods’ liability.
Numerous individuals who allege abuse by Mr. Al Fayed reportedly underwent intrusive medical examinations during their hiring process.
Acceptance of a compensation offer entails waiving the right to pursue any further legal action for damages.
In addition to its flagship store, The Harrods Group manages smaller retail locations at London’s Heathrow and Gatwick airports, along with a limited network of beauty stores. For the fiscal year 2024, revenues remained relatively stable at just over £1 billion.
The company attributed the decline in profits to reduced beauty sales and the modernization of certain operational systems.
Mr. Ward noted, “The current economic climate, both domestically and globally, presents ongoing challenges for the luxury sector.”
He added, “Nevertheless, we maintain confidence in the underlying strength of our business and the resilience of the luxury market, and we are committed to driving progress towards our long-term growth and performance objectives.”
Mr. Al Fayed was not formally charged with any offenses prior to his death two years ago.
Listen to World of Secrets, Season 4: Al Fayed, Predator at Harrods on BBC Sounds.
If you’re outside the UK, you can listen wherever you get your podcasts.
Judges unanimously vote against her legal challenge to a crematorium being built near her home.
Eligibility for compensation has also been extended to employees of one of Fayed’s private airline companies.
An exclusive Park Lane address owned by the Fayed family is at the centre of an eight-year dispute.
Detectives have written to alleged victims of the late Harrods boss and promised to answer questions about their ongoing investigation.
Survivors of alleged sexual abuse by the department store’s former boss could get up to £385,000.