Harrods Allocates Over £60 Million for Abuse Compensation
Luxury retailer Harrods has set aside more than £60 million to compensate individuals alleging historical abuse linked to its former owner, Mohamed Al Fayed, who passed away in 2023.
The redress scheme, launched in March 2025, allows alleged victims to claim up to £385,000 each. It will remain open until March 31, 2026, and more than 100 former employees have already joined the process, according to Harrods managing director Michael Ward.
Ward confirmed that interim and full compensation payments began in April 2025, noting that the retailer was “determined to do the right thing as an organisation” despite not being able to “undo the past.”
The Metropolitan Police has said that 146 people have come forward as part of its investigation into claims against Al Fayed, who owned Harrods from 1985 to 2010. Several women have accused him of rape and sexual assault, as well as intrusive medical examinations allegedly conducted during the hiring process.
Under the terms of the scheme, claimants found eligible will receive £200,000 in general damages, with the potential to claim up to £385,000 if they agree to an assessment by a consultant psychiatrist. Those opting out of the medical evaluation can receive up to £150,000.
Harrods has earmarked £57 million for victim compensation and an additional £5.3 million for legal and administrative costs, bringing the total to £62.3 million.
Partly due to the financial impact of the compensation scheme, Harrods reported a £34.3 million loss in its latest full-year accounts – a sharp drop from the £111 million profit recorded the previous year. Revenue remained steady at just over £1 billion, though the company cited weaker beauty sales and ongoing system upgrades as contributing factors.
Despite the losses, Ward expressed confidence in the brand’s resilience, saying: “The luxury sector continues to face challenges globally, but we remain focused on long-term growth and performance.”
Victims who accept compensation through the scheme will forfeit the right to pursue further legal action against Harrods.
Al Fayed, who was never charged before his death, was also known for his high-profile ownership of Fulham Football Club and The Ritz Hotel in Paris.
