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Harrods has reserved more than £60 million in its program to provide redress to alleged survivors of historical abuse.

Over 100 employees of the luxury retailer are projected to claim as much as £385,000 per person through the compensation program which is available until March 2026.

Compensation Scheme Details

The scheme, launched in March, makes available redress to victims who claim they experienced abuse by former store owner Mohamed Al Fayed, who passed away in 2023.

Several women have alleged against Fayed, who owned the department store between 1985 and 2010, of sexual assault. Law enforcement inquiries have recorded that 146 people have reported to report offenses in their inquiry into Fayed.

Financial Allocation

Harrods has allocated £57 million earmarked to compensate reported victims, with an further £5.3 million reserved to cover legal and administrative costs, taking the total amount allocated to £62.3 million.

"More than 100 victims have participated in the procedure of the program since it was opened," said the company Senior executive Michael Ward.

He noted: "Compensation awards and interim payments started to be distributed to qualified claimants at the conclusion of April 2025 and the program will continue to operate until 31 March 2026."

Compensation Breakdown

• Base compensation of £200,000 for every eligible applicant
• Maximum payment of a maximum of £385,000 in addition to treatment costs if reviewed by a consultant psychiatrist
• Alternative compensation of as much as £150,000 excluding a medical assessment

Partially because of the initiative, the company recorded a £34.3 million negative result in its current full year accounts, compared with a gain of £111 million the previous year.

Company Position

"While we cannot reverse the past, we have been resolved to do the right thing as an organization, influenced by the values we uphold today, while making certain that such conduct can not be recurred in the future," stated Harrods in a announcement.

Qualification Criteria

To be qualified for the program, individuals must demonstrate that they were experienced misconduct and/or wrongful testing, and prove that the company is liable.

Many of those who claim Fayed abused them were subjected to personal physical assessments when they were recruited.

In accepting a settlement proposal, survivors will relinquish their entitlement to seek subsequent proceedings for compensation.

Business Context

The company also runs smaller stores at London's Heathrow and Gatwick airports, as well as a limited network of beauty stores. Income for the financial year 2024 were broadly flat at just over £1 billion.

It blamed the decrease in profits on weaker beauty trading and upgrading some of its processes.

"The present domestic and global market conditions means that current business environment in the luxury sector remain demanding," stated Mr Ward.

He continued: "However, we remain confident in the strength of the business, and the strength of the high-end market, and that we will carry on to push forward towards future development and performance objectives."

Fayed was never prosecuted before his passing two years ago.