Harrods Commits Over £60 Million to Support Mohamed Al Fayed Abuse Victims: A Step Towards Justice

Harrods has dedicated over £60 million to compensate alleged victims of historical abuse, with a scheme open until March 2026. More than 100 former employees are expected to claim amounts up to £385,000 each. This initiative, launched in March, focuses on claims regarding abuse by Mohamed Al Fayed, the store’s owner from 1985 to 2010, who passed away in 2023.

Multiple women have accused Fayed of serious offenses, including rape and sexual assault. The Metropolitan Police reported that 146 people have come forward to detail their experiences during the investigation.

To support the compensation process, Harrods has set aside £57 million for victims and an additional £5.3 million for legal and administrative costs, totaling approximately £62.3 million. Harrods’ managing director, Michael Ward, stated that since the scheme launched, “more than 100 survivors” have begun the application process.

The compensation scheme awards general damages of about £200,000 to eligible claimants. Those agreeing to a psychiatric assessment could receive up to £385,000, while others may receive up to £150,000 without such evaluation. The company noted that these payouts began in late April 2025.

Interestingly, this financial commitment impacted Harrods’ latest financial results, which showed a significant loss of £34.3 million compared to a profit of £111 million the year before. The company attributed this downturn in part to the compensation scheme.

In their announcement, Harrods expressed their intent to take responsibility, acknowledging they can’t change the past but are committed to preventing similar issues in the future. To qualify for compensation, claimants must provide evidence of sexual assault or wrongful treatment linked to Harrods.

Many alleged victims reported undergoing intrusive medical examinations at the time of hiring, raising serious concerns about workplace practices. Accepting compensation means relinquishing the right to pursue further legal action.

Despite recent challenges, the Harrods Group also maintains smaller stores at major airports and a chain of beauty shops. Their revenues remained relatively stable at over £1 billion, although profits fell due to weaker beauty sales and system upgrades. Michael Ward noted that the current economic climate poses challenges for the luxury sector, but he remains optimistic about long-term growth potential.

Fayed faced no charges before his death, but these allegations have impacted Harrods’ reputation and finances significantly. This situation highlights the ongoing discussions about workplace safety and accountability in corporate environments today.

For further reading on corporate accountability measures, check this BBC article.

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