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Harrods is offering up to £200,000 each to victims of alleged sexual abuse by the luxury department store’s late former owner Mohamed Al Fayed under a compensation scheme published on Monday.
Lawyers for the company at MPL Legal shared details of the settlement process following claims of sexual assault, including rape, against Al Fayed last year.
Victims stand to be paid general damages of up to £200,000, according to the documents. The scheme also allows for other types of claims, such as work impact payments of up to £150,000 for loss of employment opportunities resulting from sexual assault, although individuals can only apply for one form of compensation.
Details of the scheme come six months after the BBC broadcast allegations about Al Fayed, who died in 2023 aged 94. The Egyptian businessman owned and controlled Harrods between 1985 and 2010, when he sold it to a Qatari sovereign wealth fund.
Lawyers for alleged victims gave a mixed response to the settlement scheme.
Richard Meeran, partner at Leigh Day, which represents 27 women, acknowledged the scheme “may be a preferable option for many”. However, he said “it seems that Harrods hopes to avoid the scrutiny of court litigation and prolonged ongoing reputational damage”.
KP Law, which is representing more than 260 women, said Harrods had not listened to its feedback on the scheme and that there were “serious concerns about its adequacy and fairness”.
The firm criticised the cap on damages, and claimed that documentation requirements were “overly intrusive”. It also said the scheme “fails to reflect [the] individual complexities” of each person’s experience.
Lawyers at Irwin Mitchell, representing a number of alleged victims including former Harrods employees, said “it could be argued that the scheme doesn’t quite go far enough to reflect the gravity of what happened here, with some of the damages payments remaining low and narrow in scope”. However, it added, “we do cautiously welcome the scheme”.
Victims can still take Harrods to court if they decide the settlement scheme is not suitable for them.
Harrods, which is funding the scheme and has apologised to victims, said that “while nothing can undo the abuse which survivors have suffered”, it “wants everyone who is eligible to receive this compensation”.
It added: “The intention is to provide survivors with a trauma-informed alternative to litigating against Harrods.”
The company said it would be premature to comment on the total number of claims it could receive.
Applications to the scheme are limited to those who have potential claims against Harrods for acts of sexual abuse perpetrated by Al Fayed, according to the documents.
Victims can apply for compensation until March 31 next year, although Harrods said it may extend the deadline.
