Harrods Allocates £60m to Compensate Victims of Fayed Abuse

Harrods has allocated more than £60 million to compensate former employees who were victims of abuse by its former owner, Mohamed Al Fayed.

Over 100 ex-staff members are expected to file claims of up to £385,000 each under a redress scheme established by the luxury department store. The initiative, which remains open until March 2026, was launched to support individuals abused during Al Fayed's ownership between 1985 and 2010.

To date, 146 people have reported crimes against Al Fayed to the Metropolitan Police, with allegations including rape and sexual assault.

The £62.3 million fund, created in March, includes £57 million for compensation payments and £5.3 million to cover legal and administrative costs. Harrods managing director Michael Ward said that "more than 100 survivors" have already joined the scheme, and compensation payments began in April 2025.

The financial impact of the fund contributed to a £34.3 million loss in Harrods' most recent annual accounts, compared with a £111 million profit in 2024. The company cited weaker beauty sales and ongoing system upgrades as additional factors.

Eligible claimants may also receive up to £150,000 for treatment costs if assessed by a consultant psychiatrist. To qualify, they must prove they were victims of sexual assault or wrongful testing and agree not to pursue further claims against the store.

A Harrods spokesperson said: "While we cannot undo the past, we are determined to do the right thing as an organisation — guided by the values we hold today — and to ensure such behaviour can never happen again."

Broadgate Legal