Harrods seeks to reclaim abuse compensation costs from Al Fayed's estate

Luxury department store Harrods is seeking a full indemnity from the estate of the late Mohamed Al Fayed for compensation it pays to hundreds of women who allege they were sexually abused by him, according to evidence seen by the Guardian.

Lucy Traynor, a senior associate at KP Law, which represents most known survivors, said Harrods publicly accepts responsibility for the abuse but its lawyers have confirmed the store intends to recover from the estate every pound it pays in compensation. If successful, Harrods would bear no ultimate financial cost, and the recovery could reduce the assets available to survivors pursuing claims directly against the estate.

Allegations and figures

Fayed, who died in 2023 aged 94, has been accused of rape, sexual assault, sexual exploitation and human trafficking between 1977 and 2014. KP Law recently said claims from 275 of the survivors it represents against Harrods and the estate could total up to £150m.

Harrods launched its own compensation scheme last year, which closed to new claims in March. Its latest accounts show it paid out £4.1m of the £57m it set aside, reaching settlements with 113 women without disclosing the total sum paid.

Reaction

Harrods said its priority is ensuring all eligible survivors are compensated and that it continues settling claims, adding that the estate has not publicly acknowledged the abuse, apologised, or settled any claim. The store applied last year to have special executors appointed to administer the estate, with a high court hearing set for November.

Former Harrods designer Shanta Sundarason, who alleges she was assaulted by Fayed, called the plan deeply disturbing, saying the abuse occurred within an environment the company itself created. A former personal assistant to Fayed described Harrods' approach as sickening.