Harrods to Launch High Court Battle Against al-Fayed Estate as Sex Abuse Compensation Bill Soars

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Luxury store seeks removal of family executors who have ‘ignored’ correspondence as hundreds of victims seek justice

Harrods is preparing to take legal action against the estate of its former owner, Mohamed al-Fayed, as the multimillion-pound legal bill for compensating his sexual abuse victims continues to escalate.

Sky News has learnt that the Knightsbridge department store, which has been owned by a Qatari sovereign wealth fund since 2010, plans to file a so-called passing-over application in the High Court as early as next week.

The legal move comes as the luxury retailer faces a compensation bill likely to run to tens of millions of pounds for the hundreds of women allegedly raped or sexually abused by the Egyptian billionaire during his 25-year tenure as owner.

EXECUTORS ‘IGNORED’ CORRESPONDENCE

The intention of the passing-over application is to secure the removal of Mr al-Fayed’s estate’s current executors, and replace them with professional executors to administer it instead.

Harrods insiders claimed that the current executors – thought to be close family members of the deceased billionaire – had “ignored” correspondence from the store’s lawyers regarding the mounting compensation claims.

Professional executors would be expected to investigate the assets and liabilities of the estate, potentially opening the door for Harrods to recover substantial sums paid out to abuse victims.

The passing-over action would achieve the goals of acknowledgement and accountability from the estate for survivors who don’t have the resource to undertake a passing-over application themselves,” an insider said this weekend.

HUNDREDS OF VICTIMS

Mr al-Fayed, who died in August 2023 aged 94, is believed to have raped or sexually abused hundreds of women during his ownership of Harrods between 1985 and 2010.

Since his death, a torrent of details about his abuse have been made public by victims, with more than 20 women telling the BBC that al-Fayed had sexually abused them, and five accusing him of rape.

By October 2024, Harrods announced it was in the process of settling more than 250 claims for compensation, with 400 alleged victims or witnesses presenting themselves to lawyers – a number that has continued to grow.

SIX-FIGURE COMPENSATION SCHEME

Earlier this year, Sky News revealed details of the compensation scheme designed by Harrods to award six-figure sums to women abused by al-Fayed.

The scheme, which launched on 31 March 2025, includes:

• Fixed payments of up to £7,500 for women forced to undergo invasive sexual health checks before employment
• Compensation based on psychological assessment for those who suffered abuse
• Coverage of reasonable legal costs for claims resolved under the scheme

The scheme will remain open until 31 March 2026, with compensation awarded based on banding criteria.

ESTATE RECOVERY PLANS

In documentation outlining the Harrods redress scheme overseen by MPL Legal, the store explicitly referred to the potential “for Harrods to recover compensation paid out under this Scheme from Mohamed Fayed’s estate.”

The form told potential claimants: “You are not obliged to assist with any such claim for recovery. However, if you would be willing to assist Harrods including potentially by giving evidence against Fayed’s estate, please indicate below.

Sources close to Harrods said the passing-over application paved the way for it to potentially seek to recover substantial sums from the estate as it contends with the escalating compensation bill.

LEGAL COMPLEXITIES

Even if Harrods’ passing-over application is approved by the High Court, any financial recovery for the department store would be subject to a number of additional legal steps, sources said.

Harrods insiders said there was a growing risk that Mr al-Fayed’s estate would not be responsibly administered given that the second anniversary of his death was now approaching.

The legal action would also potentially open the way for survivors to claim directly against the estate, though victims with no direct connection to Harrods are not eligible for compensation through the store’s own redress scheme.

‘UTTERLY APPALLED’

Harrods has said it is “utterly appalled” by the allegations of abuse perpetrated by al-Fayed, acknowledging that it “failed our employees who were his victims.

“The Harrods of today is a very different organisation to the one owned and controlled by Al Fayed between 1985 and 2010,” the store said in a statement.

The luxury retailer, which al-Fayed sold to Qatar’s sovereign wealth fund for a reported £1.5 billion in 2010, said settling claims quickly had been its priority since new information came to light in 2023.

CALLS FOR JUSTICE

Lawyers representing victims have described it as potentially “the worst case of corporate abuse of women the world has ever seen.

Dean Armstrong KC, representing alleged victims, said his team had been contacted by more than 150 individuals with claims about al-Fayed, with the number continuing to grow.

Gloria Allred, the prominent US attorney also representing victims, said the allegations included “serial rape, attempted rape, sexual battery and sexual abuse of minors, perpetrated over 25 years.

As Harrods prepares its High Court action, the question remains whether al-Fayed’s estate – valued at an estimated £1.7 billion – will finally be held accountable for decades of alleged abuse that was, according to many, an “open secret” within the walls of the luxury department store.