🔗 Share this article

The renowned retailer has dedicated in excess of £60 million in its plan to compensate reported victims of historical misconduct.

Over 100 workers of the high-end retailer are projected to claim up to £385,000 each via the redress scheme which is available until March 2026.

Redress Scheme Details

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

Several women have accused Fayed, who controlled the luxury store between 1985 and 2010, of misconduct. Official probes have recorded that 146 people have come forward to disclose crimes in their examination into Fayed.

Financial Reserves

Harrods has reserved £57 million earmarked to provide redress to reported survivors, with an additional £5.3 million allocated to handle operational and legal costs, making the overall sum reserved to £62.3 million.

"More than 100 survivors have entered the procedure of the scheme since it was launched," said the company Senior executive Michael Ward.

He added: "Financial redress and provisional sums began being issued to eligible survivors at the end of April 2025 and the initiative will stay active until 31 March 2026."

Payment Structure

• Standard payment of £200,000 for each eligible claimant
• Maximum award of a maximum of £385,000 plus therapy expenses if evaluated by a consultant psychiatrist
• Other payment of up to £150,000 absent a health evaluation

Partially due to the program, the company recorded a £34.3 million deficit in its current yearly statement, versus a positive result of £111 million the prior year.

Company Statement

"While we are unable to reverse the previous events, we have been resolved to act appropriately as an organization, guided by the ethics we hold today, while guaranteeing that such behavior can never be recurred in the future," declared Harrods in a announcement.

Eligibility Requirements

To be entitled for the program, claimants must prove that they were victims of sexual assault and/or improper examinations, and demonstrate that the company is liable.

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

In accepting a compensation offer, claimants will forfeit their entitlement to seek additional claims for compensation.

Corporate Background

The company also manages outlets at London's Heathrow and Gatwick airports, as well as a small chain of beauty stores. Income for the fiscal year 2024 were largely unchanged at just over £1 billion.

It attributed the decline in profits on reduced beauty trading and improving some of its systems.

"The current domestic and global market conditions means that current trading conditions in the premium industry remain demanding," stated Mr Ward.

He noted: "Nevertheless, we remain confident in the strength of the business, and the strength of the premium industry, and that we will carry on to drive progress towards sustained expansion and operational goals."

Fayed was without formal charges before his passing two years ago.