Harrods Allocates Over £60m for Mohamed Al Fayed Abuse Victims
Harrods has allocated over £60 million to compensate alleged historical abuse victims. The initiative aims to address claims from more than 100 individuals who allege they suffered abuse under the former owner, Mohamed Al Fayed.
Details of the Compensation Scheme
The redress scheme was launched in March 2023 and remains open until March 31, 2026. Victims may claim compensation for alleged sexual assault or wrongful testing, and must establish Harrods’ liability in their cases. Each eligible claimant can receive general damages of £200,000, with potential amounts reaching up to £385,000, depending on assessments by professionals.
- Total Funded Amount: £62.3 million
- Allocation to Victims: £57 million for claims
- Additional Costs: £5.3 million for legal and administrative expenses
- Claim Period: March 2023 to March 31, 2026
- Reported Claimants: 146 individuals have come forward
Statements from Harrods Management
Michael Ward, Harrods’ Managing Director, noted that “more than 100 survivors” have participated in the scheme since its inception. Compensation payments began in April 2025, signaling the company’s commitment to address these serious issues.
Ward expressed, “While we cannot undo the past, we are determined to act rightfully now.” This aligns with the values Harrods maintains today to prevent the recurrence of such behavior.
Impact on Harrods’ Financial Performance
The establishment of the compensation scheme significantly influenced Harrods’ financial results. The company reported a loss of £34.3 million for the most recent fiscal year, a stark contrast to a profit of £111 million the previous year.
Ward attributed this decline to the complexities arising from the compensation process and noted challenges within the luxury market. Despite these obstacles, he emphasized confidence in the resilience of both Harrods and the luxury retail sector.
Background on Mohamed Al Fayed
Mohamed Al Fayed, who owned Harrods from 1985 until 2010, faced multiple allegations of sexual misconduct before his death in 2023. Notably, he was never charged with any crime during his lifetime.
In summary, Harrods is actively addressing historical claims through a substantial compensation scheme. This effort reflects a commitment to accountability and the welfare of its employees.
