Harrods Allocates Over £60 Million for Victims of Former Owner's Abuse Claims

Harrods has allocated over £60 million to compensate alleged victims of historical sexual abuse by its former owner, Mohamed Al Fayed, who died in 2023. The compensation fund includes £57 million for direct payments to more than 100 survivors and an additional £5.3 million for legal and administrative costs, with claimants potentially receiving up to £385,000 depending on their participation in medical assessments. The scheme, which opened in March 2025 and will remain available until March 2026, requires victims to waive their rights to further legal action in exchange for compensation. Harrods has acknowledged the impact of the compensation program on its finances, reporting a £34.3 million loss in the latest fiscal year compared to a £111 million profit the previous year. While revenues remain stable, the company attributes the financial downturn partly to the compensation payouts, along with challenges in the beauty sector and system modernization efforts. Harrods has expressed a commitment to addressing past wrongs and ensuring such abuse is never repeated, emphasizing the importance of organizational values and survivor support.