Harrods has allocated over £60 million to compensate alleged victims of historical abuse by former owner Mohamed Al Fayed.
Compensation Details for Victims
More than 100 employees are expected to claim compensation through the scheme, which is open until March 2026. Launched in March, the program addresses allegations of abuse committed by Al Fayed, who passed away in 2023.
Victims can seek general damages of £200,000, potentially increasing to £385,000 with medical assessments. Claims related to intrusive medical examinations during hiring are also considered.
Financial Impact on Harrods
Harrods reported a loss of £34.3 million in its latest accounts, down from a profit of £111 million the previous year. The company attributes this decline partly to the compensation scheme and challenges in beauty product sales.
Managing Director Michael Ward stated the luxury sector’s current economic environment poses challenges but expressed confidence in the future growth of the business.
Eligibility and Legal Considerations
To qualify for compensation, claimants must show proof of sexual assault and demonstrate Harrods’ liability. Victims accepting offers will waive any rights to further legal action.
Harrods also operates smaller stores at Heathrow and Gatwick airports, reporting stable revenues of over £1 billion for 2024, which were affected by system upgrades and weaker trading.
