Harrods has allocated more than £60million to address claims of historical abuse by its former proprietor, Mohamed Al Fayed.
The fund encompasses £57million for direct compensation to alleged victims, with an additional £5.3million earmarked for legal and administrative expenses.
Managing director Michael Ward confirmed that “more than 100 survivors” have engaged with the compensation process since its inception.
Each eligible claimant could receive payments reaching £385,000, depending on the assessment process they choose.
The scheme will continue accepting applications until March 31, 2026, with initial payments to eligible survivors having commenced at the end of April 2025.
Eligible claimants will be offered a base payment of £200,000 in general damages.
Those who consent to evaluation by a consultant psychiatrist may receive up to £385,000 plus treatment expenses, while those declining medical assessment can obtain up to £150,000.
Numerous individuals alleging abuse by Mr Al Fayed report having endured invasive medical examinations during their recruitment process.
Harrods has set aside over £60million to settle historical abuse claims linked to former owner Mohamed Al Fayed
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Accepting compensation through the scheme requires victims to relinquish their right to pursue additional legal action for damages.
Harrods stated: “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.”
The compensation programme has significantly affected Harrods’ financial performance, with the company reporting a £34.3million loss in its most recent annual accounts.
This represents a dramatic reversal from the £111million profit recorded in the preceding year.
Numerous individuals alleging abuse by Mr Al Fayed report having endured invasive medical examinations during their recruitment process
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The luxury department store attributed the decline partly to the abuse compensation scheme, alongside challenges from weakened beauty sector trading and investments in system modernisation.
Despite revenues remaining stable at just over £1billion for the 2024 financial year, profitability has been severely impacted.
Mr Ward acknowledged the difficult trading environment, saying: “The current domestic and global economic environment means that current trading conditions in the luxury sector remain challenging.”
He expressed confidence in the business’s fundamental strength, the luxury sector’s resilience, and the store’s ability to achieve long-term growth targets.
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Mr Al Fayed previously owned Fulham Football Club
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Mr Al Fayed, who controlled the Knightsbridge store from 1985 until 2010, faces numerous allegations of rape and sexual assault from multiple women.
Furthermore, a former manager of Fulham FC’s women’s team, whom Mr Al Fayed formerly owned, says extra precautions were put in place to protect female players from the club’s late owner.
The club said they were “deeply troubled and concerned” by “disturbing” reports about Mr Al Fayed’s tenure as Harrods owner.
Al Fayed died in 2023 without facing criminal charges for the alleged offences.
Metropolitan Police revealed that 146 individuals have approached authorities to report crimes as part of their investigation into Mr Al Fayed.