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. 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”. If Harrods were successful, the claims of survivors who were only seeking compensation from the estate could be affected, Traynor said. Earlier this week, KP Law said compensation claims against Harrods and the estate by 275 of the survivors it represents could reach up to £150m.
Fayed, who died aged 94 in 2023, has been accused of rape, sexual assault, sexual exploitation and human trafficking from 1977 to 2014. 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 2025 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 £4.1m from the £57m it set aside for compensation in 2025.
The store added that it had made settlements with 113 women to date, but did not disclose the total amount paid. In 2023 the Sunday Times reported that Fayed’s fortune was £1.69bn, 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.
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