Harrods has allocated over £60 million to a compensation fund for individuals alleging historical abuse linked to former owner Mohamed Al Fayed, who passed away in 2023. The redress scheme, launched in March 2025, has been opened to more than 100 employees who may each claim up to £385,000. This initiative follows multiple accusations of rape and sexual assault against Al Fayed, who owned the department store from 1985 to 2010. According to the Metropolitan Police, 146 individuals have reported incidents related to their investigation.
Specifically, Harrods has set aside £57 million for compensation with an additional £5.3 million earmarked for legal and administrative expenses, totaling approximately £62.3 million. The company’s managing director, Michael Ward, reported that “more than 100 survivors” have already engaged with the scheme, which will operate until March 31, 2026. Compensation awards, including interim payments that began at the end of April 2025, are structured to provide general damages of £200,000 per eligible claimant. Those who agree to a psychiatric assessment may receive up to £385,000, while claimants without a medical evaluation could secure up to £150,000.
Harrods reported a loss of £34.3 million in its most recent fiscal year, in contrast to a £111 million profit the year before, partially attributed to expenses related to the compensation scheme. The company has emphasized its commitment to addressing these past issues, stating that their aim is to ensure such behaviors are not repeated.
Eligibility for the compensation scheme requires claimants to demonstrate that they experienced sexual assault and/or wrongful treatment, as well as proving Harrods’ liability. Accepting compensation will preclude victims from further legal action. Harrods operates additional stores at London’s Heathrow and Gatwick airports, with total revenues of just over £1 billion for the financial year 2024. The company cited challenges in the beauty sector and ongoing system modernization as factors impacting profitability.
Source: https://www.bbc.com/news/articles/cx20ky6n79eo?at_medium=RSS&at_campaign=rss