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Harrods logo with portrait and text about Mohamed Al Fayed abuse allegations.
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Harrods Sets Aside £62.3 Million Redress Scheme for Mohamed Al Fayed Abuse Claims

Harrods allocates £62 million for Al Fayed victims

Harrods has allocated £62.3 million to compensate over 100 individuals claiming historical abuse by late owner Mohamed Al Fayed.

  • £62.3 million total compensation fund established by Harrods
  • Over 100 former employees have joined compensation scheme
  • Scheme opened March 2025 and closes March 2026
  • General damages of £200,000 offered to claimants
  • Maximum compensation £385,000 with psychiatric evaluation required
  • Harrods reported £36.5 million loss in FY2025
  • Metropolitan Police received 146 victim reports so far
  • Al Fayed owned Harrods from 1985 until 2010

Harrods has allocated more than £62 million to compensate individuals who allege they suffered abuse by former owner Mohamed Al Fayed. The luxury department store expects over 100 former employees to claim compensation of up to £385,000 each through the redress scheme, which remains open until March 31, 2026.[1][2]

Compensation Program Details

The scheme launched on March 31, 2025, provides compensation to victims who assert they experienced abuse at the hands of Al Fayed, who passed away in 2023. Al Fayed owned the upscale London retailer from 1985 to 2010, during which time numerous women have made allegations including rape and sexual assault.[3][4]

Harrods has set aside £57 million to directly compensate alleged victims, plus an additional £5.3 million allocated for legal and administrative expenses, totaling £62.3 million.[5][6]

Managing Director Michael Ward stated that compensation awards and interim payments began being distributed to eligible survivors at the end of April 2025. Ward confirmed that more than 100 survivors have engaged with the scheme since its launch.[7]

Award Structure and Eligibility

The compensation program provides each qualifying claimant with general damages of £200,000. Claimants may receive up to £385,000 in total compensation plus costs for treatment, contingent upon their agreement to undergo evaluation by a consultant psychiatrist. Those who decline medical assessment could receive as much as £150,000 without such evaluation.[8][9]

To qualify for the scheme, claimants must demonstrate they experienced sexual assault or wrongful testing and establish Harrods liability. Many individuals who allege abuse by Al Fayed underwent invasive medical examinations during their hiring process. By accepting a compensation package, victims relinquish their right to seek further damages.[10]

Investigation Status

The Metropolitan Police reported that 146 individuals have stepped forward to report incidents during their inquiry into Al Fayed. The investigation continues as authorities gather evidence related to the allegations spanning his decades of ownership.[1][3]

Financial Impact on Harrods

The compensation scheme has significantly affected Harrods financial performance. The company reported a loss of £36.5 million for the fiscal year ending February 1, 2025, marking a dramatic reversal from the £76.7 million profit recorded in the previous year.[11][12]

The establishment reported a £34.3 million pre-tax loss in its most recent annual financial statements, a stark contrast to the £111 million profit recorded the year prior, partially attributed to the compensation scheme.[13]

Revenue for the financial year 2024 remained relatively stable at just above £1 billion. However, the decline in profits was attributed to weaker performance in beauty sales and the modernization of various systems. Operating profit before exceptional items dropped to £177.7 million from £213.9 million.[14][15]

Company Response

In its announcement regarding the scheme, Harrods expressed commitment to accountability. The company stated it cannot alter the past but is committed to acting rightly as an organization, guided by current values, and ensuring that such actions are never repeated.[16]

Ward acknowledged the difficult trading environment, noting that current domestic and global economic conditions mean that trading conditions in the luxury sector remain challenging. He expressed confidence in the business fundamental strength, the luxury sector resilience, and the store ability to achieve long-term growth targets.[2][7]

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Rachel Patel is a senior news editor and journalist specializing in political journalism and digital media. With over seven years of professional experience, she is recognized for her accuracy, source verification, and audience-focused reporting approach. Rachel earned her M.S. in Journalism & Media Studies from Stanford University (2018), where she developed expertise in media ethics, political communication, and digital storytelling. Her career has centered on bridging traditional political reporting with the fast-paced world of online journalism. She has contributed to major global media outlets, analyzing how digital platforms — from YouTube and Reddit to TikTok and Bluesky — shape political narratives, influence public opinion, and redefine news consumption. Now based in Berlin, Germany, Rachel serves as a Senior News Editor at Faharas NET, leading coverage on digital politics, media literacy, and social communication trends in the modern information landscape.

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Editorial Timeline

Revisions
— by Elena Voren
SEO improvements have been made to the article.
— by Howayda Sayed
  1. Comprehensive rewrite and factual verification against October 2025 sources
  2. Restructured entire article with proper H2 and H3 headings for better readability
  3. Rewrote opening paragraph in BLUF format to deliver key facts immediately
  4. Expanded financial impact section with detailed FY 2025 results
  5. Enhanced compensation details with clear tiered award structure
  6. Updated all quotations to match verified press materials exactly
  7. Improved transitions and paragraph flow for enhanced clarity
  8. Added comprehensive investigation status section with police data
  9. Expanded FAQ section with detailed, factual answers covering key user questions
— by Howayda Sayed
Verified financial and claim data using official sources.
— by Howayda Sayed
Added clear section headings covering all key areas.
— by Howayda Sayed
Updated the headline for clarity and factual precision.
— by Howayda Sayed
Initial publication.

Correction Record

Accountability
— by Howayda Sayed
  1. Updated total compensation fund from £60 million to £62.3 million per latest official figures
  2. Verified £57 million for direct compensation and £5.3 million for legal expenses
  3. Confirmed over 100 claimants have entered scheme per Michael Ward statement
  4. Updated financial loss figures: £36.5 million post-tax loss and £34.3 million pre-tax loss
  5. Corrected operating profit figure to £177.7 million down from £213.9 million
  6. Verified 146 individuals reported incidents to Metropolitan Police investigation
  7. Confirmed scheme opened March 31, 2025 and closes March 31, 2026
  8. Verified Al Fayed ownership period 1985 to 2010
  9. Clarified award structure: £200,000 base, up to £385,000 with psychiatric assessment
  10. Updated revenue figure to just above £1 billion for FY 2024

FAQ

What are the qualifications for compensation?

To qualify for compensation, claimants must demonstrate they experienced sexual assault or invasive medical testing during their employment at Harrods and establish that Harrods bears legal liability. The scheme covers incidents that occurred between 1985 and 2010 during Mohamed Al Fayed's ownership of the store.

When does the compensation scheme end?

The compensation scheme opened on March 31, 2025 and will accept applications until March 31, 2026. Interim payments to eligible survivors began at the end of April 2025, with full awards issued upon claim validation and completion of the assessment process.

What might victims receive in compensation?

Each eligible claimant receives £200,000 in general damages. Those who agree to psychiatric evaluation may receive up to £385,000 total, plus treatment costs. Claimants declining medical assessment can receive up to £150,000. By accepting compensation, victims waive rights to pursue further legal action.