Compensation claims by 275 survivors of alleged sexual abuse by the former owner of Harrods Mohamed Al Fayed could reach between £100m and £150m, according to a law firm representing the women. The combined value of their claims, calculated by KP Law (KPL), which represents more than half of known survivors, is around two to three times greater than the amount the luxury department store has set aside for all abuse payouts. This suggests that Harrods and the late billionaire’s estate together could face a combined compensation bill of more than £200m.
Harrods’ latest annual report, published in August, showed it had paid out only £4.1m from the £57m it set aside for compensation in 2025, excluding legal and administration costs. The accounts also showed that the retailer reduced the amount set aside by £1.1m, leaving a compensation pot worth £51.8m in January 2026. Lucy Traynor, a senior associate at KPL, said Harrods’ own compensation scheme, which stopped accepting claims on 31 March, was “not fit for purpose” and underestimated the impact of the alleged abuse on survivors’ lives and careers.
She added: “The evidence available to us indicates that the average value of the claims being pursued is likely to be hundreds of thousand pounds higher than the apparent average payment under the Harrods scheme. We’re seeing figures in the millions for [a client’s] loss of earnings and future loss of earnings.” Harrods said it had made settlements with 113 women through its redress scheme to date. The store did not clarify how many settlements were covered by the £4.1m paid out last year, but noted that more than 50 were made by mid-February this year.
Traynor said this suggested that the average payout to survivors under the redress scheme would be approximately £82,000. This estimate is also significantly lower than the maximum payout of £385,000 under the Harrods scheme, which includes general damages of up to £200,000 and a work impact payment of up to £150,000, as well as payments for treatment costs and “wrongful” medical tests for sexually transmitted diseases. A Harrods spokesperson said the store did not “provide ongoing commentary on settlement values”, but that it was “committed to ensuring all eligible survivors receive compensation for the appalling abuse they suffered”.
More than 400 allegations including rape, sexual assault, sexual exploitation and human trafficking have been made against Fayed, who died three years ago. One of KPL’s clients, Carrie Lazell, from Norfolk, said her nascent career as a designer ended after she was groomed and sexually assaulted by the former Harrods boss. Lazell, who worked as a designer at the luxury store in her early 20s, said: “I lost a career, and I’ve gone through a whole load of very unpleasant, unnecessary trauma with a man I did not want to engage sexually with at all.
I was really enjoying work [at Harrods]. I think I was set to become a successful designer.” But she said her performance suffered as a result of the alleged abuse. Lazell added: “I couldn’t say it’s because every day the chairman of Harrods is abusing me.
Extract — continue reading at the source.
