Harrods is seeking to recover the cost of the compensation paid to hundreds of women allegedly sexually abused by Mohamed Al Fayed from his estate, the Guardian understands.
The luxury department store is seeking full indemnity from the late billionaire’s estate for any settlements it is required to pay, according to evidence seen by the Guardian.
Survivors of Fayed’s alleged abuse said the retailer’s plan to recover its compensation costs was distressing and at odds with its public acceptance of responsibility.
Lucy Traynor, a senior associate at KP Law, which represents the majority of known survivors, said: “Harrods publicly says that it accepts responsibility for the abuse suffered by survivors. However, its lawyers have confirmed that Harrods intends to seek a full indemnity from Mohamed Al Fayed’s estate for any compensation it is required to pay.
“If successful, that would mean Harrods recovering the entirety of those compensation payments from the estate and bearing no ultimate financial consequence itself. Its present position is that, despite its statements about accepting responsibility, it intends to seek recovery from the estate of every pound it pays in compensation.”
Traynor said Harrods’ intention to fully indemnify itself was “difficult to reconcile with its public statements about institutional responsibility and accountability”.
She said the allegations concerning Harrods went beyond “Al Fayed as an individual who owned the business”.
“Survivors have raised serious questions about the environment in which this was able to happen, the role of others within the organisation, what was known or ought to have been known, and whether institutional structures facilitated or failed to prevent his conduct,” she said.
If Harrods were successful, the claims of survivors who were only seeking compensation from the estate could be affected, Traynor said.
“Any attempt by Harrods to recover substantial sums from the estate could reduce the assets available to meet those survivors’ claims.”
In a statement, Harrods said: “Our priority is to ensure all eligible survivors receive compensation for abuses perpetrated by Fayed, and Harrods continue to settle claims.”
The store has previously accepted “vicarious liability” for the sexual abuse allegedly perpetrated by Fayed, and condemned it.
Earlier this week, KP Law said compensation claims against Harrods and the estate by ۲۷۵ of the survivors it represents could reach up to £۱۵۰m.
Fayed, who died aged ۹۴ in ۲۰۲۳, has been accused of rape, sexual assault, sexual exploitation and human trafficking from ۱۹۷۷ to ۲۰۱۴. Survivors claim that Harrods did not adequately address the allegations for years.
Two years ago, Harrods opened an investigation into whether any of its current staff were “directly or indirectly involved” in the alleged sexual abuse of women by Fayed. An employee had left the business in ۲۰۲۵ in relation to that investigation, the store later said.
The retailer created its own compensation scheme for survivors last year, which closed to new claims in March. Its latest accounts showed it had paid out £۴.۱m from the £۵۷m it set aside for compensation in ۲۰۲۵. The store added that it had made settlements with ۱۱۳ women to date, but did not disclose the total amount paid.
In ۲۰۲۳ the Sunday Times reported that Fayed’s fortune was £۱.۶۹bn, making him the fourth richest person in Scotland at that time.
Last year, Harrods made a passing-over application (POA) to appoint special executors to administer Fayed’s estate, replacing family members. The department store said this was necessary to protect assets and to ensure the estate could pay compensation “in a timely and appropriate manner”. A high court hearing is scheduled for November.
Harrods’ statement added: “To our knowledge, the Fayed estate has not publicly acknowledged abuses, nor apologised or settled a single claim. The POA seeks the appointment of an independent executor to administer claims against the estate, therefore, any financial recovery for compensation to survivors of Fayed’s abuses remains a number of legal steps away.”
Shanta Sundarason, who says she was sexually assaulted by Fayed in his office when she worked as a designer at Harrods, said the store’s plan to recover the costs of compensation was “deeply disturbing”.
“My abuse did not happen in some separate world belonging only to Mohamed Al Fayed. Harrods was not simply the backdrop to what happened to me, it was the environment in which I was recruited, selected, controlled and ultimately abused,” she said.
“Harrods cannot tell me that it accepts institutional responsibility for what happened to me, while simultaneously seeking to ensure that the institution ultimately bears none of the financial consequence. For me, accountability is not simply writing a cheque and then recovering every penny from someone else.
“What happened to me was not simply the act of one individual. My abuse existed within a system. From Mohamed Al Fayed’s security detail and office staff to management and the structures surrounding him, it took more than one person to create an environment in which abuse could occur and remain hidden.”
A former employee named Catherine, who says she was sexually abused by Fayed when she worked as his personal assistant between ۱۹۹۰ and ۱۹۹۱, described Harrods’ plan to recover compensation costs from the estate as “truly sickening”.
“Harrods have stated that they are sorry but [are] doing everything they can to escape paying anything and it’s simply not right,” she said.
The estate was approached for comment.
