The luxury department store allocates over £60m to compensate misconduct claimants

The renowned retailer has dedicated in excess of £60 million as part of its initiative to compensate reported victims of historical abuse.

More than 100 workers of the luxury retailer are anticipated to be awarded a maximum of £385,000 each through the redress scheme which remains open until March 2026.

Compensation Scheme Details

The scheme, introduced in March, makes available financial settlement to victims who claim they endured abuse by previous store owner Mohamed Al Fayed, who passed away in 2023.

Multiple women have accused Fayed, who operated the luxury store between 1985 and 2010, of sexual assault. Law enforcement inquiries have recorded that 146 people have reported to report crimes in their investigation into Fayed.

Financial Allocation

The company has set aside £57 million to be used to compensate alleged survivors, with an further £5.3 million allocated to handle legal and administrative costs, taking the overall sum set aside to £62.3 million.

"More than 100 victims have entered the procedure of the scheme since it was initiated," said the company Managing director Michael Ward.

He noted: "Compensation awards and initial disbursements commenced distribution to qualified claimants at the end of April 2025 and the scheme will remain open until 31 March 2026."

Payment Breakdown

• General damages of £200,000 for each qualified claimant
• Potential award of a maximum of £385,000 including treatment costs if reviewed by a consultant psychiatrist
• Alternative compensation of as much as £150,000 absent a health evaluation

Partially because of the scheme, the company posted a £34.3 million negative result in its most recent yearly statement, against a positive result of £111 million the previous year.

Organizational Statement

"While we cannot undo the previous events, we have been committed to act appropriately as an institution, influenced by the values we hold today, while making certain that such actions can not be recurred in the future," declared Harrods in a announcement.

Eligibility Requirements

To be entitled for the program, claimants must prove that they were subject to misconduct and/or improper examinations, and demonstrate that the company is responsible.

Several of those who allege Fayed mistreated them experienced invasive health checks when they were employed.

In approving a settlement proposal, victims will waive their entitlement to initiate further action for redress.

Business Context

The company also manages locations at London's Heathrow and Gatwick airports, as well as a small chain of beauty stores. Revenues for the financial year 2024 were relatively stable at just over £1 billion.

It attributed the decrease in profits on reduced beauty trading and modernising some of its processes.

"The current national and worldwide economic environment means that present market situation in the premium industry remain challenging," stated Mr Ward.

He added: "However, we remain assured in the capability of the organization, and the durability of the luxury sector, and that we will persist to push forward towards longer-term development and business targets."

Fayed was not charged before his passing two years ago.