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Harrods sets aside more than £60m for abuse compensation
Harrods sets aside more than £60m for abuse compensation
Harrods has set aside more than £60m in its plan to compensate alleged victims of historical abuse.
More than 100 employees of the luxury department store are expected to claim up to £385,000 each via the redress scheme which is open until March 2026.
The scheme, launched in March, provides to victims who claim they have suffered abuse by former Harrods owner Mohamed Al Fayed, who died in 2023.
Multiple women have accused Fayed, who owned the luxury store between 1985 to 2010, of rape and sexual assault. The Met Police said that 146 people have come forward to report a crime in their investigation into Fayed.
Harrods have set aside £57 million to be used to compensate alleged victims, with an extra £5.3m reserved to cover legal and administrative costs, bringing the total amount allocated to £62.3 million.
Harrods Managing director Michael Ward said that "more than 100 survivors" have joined the process of the scheme since it was opened.
He added: "Compensation awards and interim payments began being issued to eligible survivors at the end of April 2025 and the scheme will remain open until 31 March 2026."
The compensation scheme will award each eligible claimant general damages of £200,000. They could receive up to £385,000 in compensation, plus treatment costs, if they agree to be assessed by a consultant psychiatrist, or up to £150,000 without a medical assessment, Harrods said in March.
Partially due to the scheme, Harrods recorded a £34.3 million loss in its latest full year accounts, compared with a profit of £111 million the previous year.
In a statement announcing the scheme, Harrods said: "While we cannot undo the past, we have been determined to do the right thing as an organisation, driven by the values we hold today, while ensuring that such behaviour can never be repeated in the future."
To be eligible for the scheme, claimants must prove that they were subject to sexual assault and/or wrongful testing, and prove that Harrods is liable.
Many of those who say Fayed abused them underwent intrusive medical examinations when they were hired.
In accepting a compensation offer, victims will waive their right to pursue further action for damages.
The Harrods Group also operates smaller stores at London's Heathrow and Gatwick airports, as well as a small chain of beauty stores. Revenues for the financial year 2024 were broadly flat at just over £1bn.
It blamed the drop in profits on weaker beauty trading and modernising some of its systems.
Mr Ward added: "The current domestic and global economic environment means that current trading conditions in the luxury sector remain challenging.
However, we remain confident in the strength of the business, and the resilience of the luxury sector, and that we will continue to drive progress towards longer-term growth and performance objectives.
Fayed was not charged before 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.
Source: BBC
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