Key facts
- Harrods is seeking to recover compensation costs paid to abuse survivors from Mohamed Al Fayed's estate.
- The luxury department store aims for full indemnity from the estate for any settlements it pays.
- Survivors' legal representatives state Harrods' intention contradicts its public acceptance of responsibility.
- Compensation claims against Harrods and the estate by 275 survivors could reach up to £150m.
- Mohamed Al Fayed, who died in 2023, has been accused of rape, sexual assault, sexual exploitation, and human trafficking.
- Harrods has paid out £4.1m in compensation to 113 women to date.
Harrods is seeking to recover the costs of compensation paid to hundreds of women who allege sexual abuse by the late billionaire Mohamed Al Fayed from his estate. The luxury department store is pursuing full indemnity from Fayed's estate for any settlements it is required to pay, according to evidence seen by The Guardian.
Survivors and their legal representatives have expressed distress over Harrods' intention, arguing it contradicts the company's public statements of accepting institutional responsibility. Lucy Traynor, a senior associate at KP Law, which represents the majority of known survivors, stated that Harrods' lawyers confirmed the intention to seek full recovery from the estate, meaning the retailer would bear no ultimate financial consequence.
Traynor noted that the allegations extend beyond Fayed as an individual, raising questions about the organizational environment and potential institutional complicity. She warned that Harrods' attempt to recover substantial sums could reduce the assets available for survivors seeking compensation directly from the estate.
In response, Harrods stated that its priority is ensuring all eligible survivors receive compensation and that the store continues to settle claims. The company has previously accepted "vicarious liability" for the abuse and condemned it. Harrods created its own compensation scheme last year, which closed to new claims in March. Its latest accounts show it has paid out £4.1m from £57m set aside for compensation, with settlements made to 113 women to date.
KP Law recently stated that compensation claims against Harrods and the estate by 275 survivors could reach up to £150m. Fayed, who died in 2023 at the age of 94, has been accused of various forms of sexual misconduct and human trafficking between 1977 and 2014.
Last year, Harrods applied to the high court to appoint special executors for Fayed's estate, citing the need to protect assets and ensure timely compensation payments. A hearing is scheduled for November. Harrods added that the Fayed estate has not publicly acknowledged abuses, apologized, or settled any claims, and that the appointment of an independent executor is sought to administer claims against the estate.