Harrods sets aside $83 million for victims of Egyptian billionaire Mohamed Al-Fayed

London-based Harrods, one of the world’s best-known luxury department stores, has allocated more than $83.9 million to compensate people who say they were victims of abuse linked to its former owner, the late Egyptian billionaire businessman Mohamed Al-Fayed.

According to company filings, Harrods has set aside £62.3 million ($83.9 million) for a redress scheme that opened in March. More than 100 former employees are expected to receive payments of up to £385,000 ($518,000) each. The program will remain open until March 2026. Those who accept compensation must agree not to pursue further legal action.

Harrods compensation scheme pushes $46 million loss

Applicants must show evidence that they suffered sexual assault or were subjected to invasive medical testing while employed at the store. Many of the allegations center on intrusive examinations carried out during the hiring process. Victims who accept compensation will also be eligible for counseling and treatment costs.

The Metropolitan Police said 146 people have contacted investigators with claims involving Al-Fayed. Harrods confirmed that about £57 million ($76.8 million) will go directly to victims, with £5.3 million ($7.1 million) reserved for legal and administrative expenses. Managing Director Michael Ward said that more than 100 survivors have already joined the process and that initial payments began in April.

Under the scheme, each eligible claimant will receive general damages of £200,000 ($270,000), with additional awards based on medical evaluations. The program contributed to a £34.3 million ($46.2 million) annual loss for Harrods, compared with a £111 million ($149.5 million) profit the previous year.

BBC probe exposes Al-Fayed abuse allegations

Mohamed Al-Fayed, who owned Harrods from 1985 to 2010 and died in September 2023 with an estimated fortune of $2 billion, has been accused by multiple women of rape and sexual assault. Reports and court documents describe how young job applicants were subjected to HIV and gynecological tests, with some later invited to accompany him to Paris.

A 1995 Vanity Fair profile by quoted former staff saying Al-Fayed routinely sought out young women in the store and humiliated those who rejected him. In 2024, a BBC investigation revealed more than 20 former Harrods employees had accused him of sexual assault, including five who alleged rape. By that October, more than 400 people had come forward. A BBC documentary later detailed the company’s failure to investigate complaints at the time.

Omar Al-Fayed calls for transparency

Harrods’ Ward said Al-Fayed “presided over a toxic culture of secrecy, intimidation, and sexual misconduct.” The company began settling more than 250 claims last year. The Metropolitan Police have confirmed they are investigating Al-Fayed and others who may have enabled the behavior. Records show the police were alerted to some allegations as early as 1995.

Al-Fayed’s son, Omar, said he was “horrified” by the accusations and expressed sympathy for victims, urging full transparency. Harrods, in a statement announcing the redress scheme, said: “While we cannot undo the past, we are determined to do the right thing and ensure such behavior is never repeated.”
(Billionaires Africa)