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The renowned retailer has allocated in excess of £60 million as part of its program to compensate alleged victims of historical abuse.

More than 100 staff members of the high-end retailer are anticipated to be awarded up to £385,000 individually by means of the redress scheme which continues to accept claims until March 2026.

Compensation Program Information

The scheme, launched in March, provides compensation to survivors who allege they endured misconduct by previous store owner Mohamed Al Fayed, who died in 2023.

Numerous women have accused Fayed, who controlled the department store between 1985 and 2010, of sexual assault. Official probes have recorded that 146 people have stepped forward to disclose offenses in their investigation into Fayed.

Monetary Reserves

Harrods has allocated £57 million to be used to provide redress to reported survivors, with an additional £5.3 million set aside to handle operational and legal costs, bringing the complete allocation allocated to £62.3 million.

"More than 100 claimants have participated in the process of the program since it was opened," stated Harrods Managing director Michael Ward.

He continued: "Settlement payments and provisional sums started to be distributed to qualified claimants at the close of April 2025 and the scheme will continue to operate until 31 March 2026."

Compensation Breakdown

• Base compensation of £200,000 for each qualified recipient
• Potential award of up to £385,000 including therapy expenses if assessed by a medical professional
• Other compensation of a maximum of £150,000 excluding a professional review

Partially due to the program, Harrods posted a £34.3 million deficit in its latest full year accounts, against a profit of £111 million the prior year.

Company Position

"Although we are unable to change the previous events, we have been committed to do the right thing as an institution, influenced by the ethics we maintain today, while ensuring that such behavior can never be repeated in the coming years," announced Harrods in a statement.

Qualification Criteria

To be entitled for the initiative, individuals must demonstrate that they were subject to sexual assault and/or improper examinations, and demonstrate that Harrods is responsible.

Many of those who allege Fayed mistreated them were subjected to invasive health checks when they were recruited.

In agreeing to a compensation offer, victims will relinquish their right to initiate subsequent proceedings for compensation.

Corporate Context

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

It credited the drop in profits on diminished beauty sales and upgrading some of its processes.

"The present national and worldwide financial climate means that current market situation in the high-end market remain challenging," commented Mr Ward.

He added: "However, we remain confident in the resilience of the business, and the durability of the premium industry, and that we will persist to drive progress towards longer-term development and operational goals."

Fayed was never prosecuted before his death two years ago.