Harrods, a world-famous luxury department store, is seeking to recover millions of pounds from the estate of its late former owner and Egyptian billionaire, Mohamed Al Fayed, as hundreds of people pursue compensation over alleged sexual abuse during his ownership of the London department store.

The dispute pits Harrods, now owned by Qatar’s sovereign wealth fund, against Al Fayed’s family estate over who should ultimately bear the cost of compensation linked to allegations against the Egyptian-born businessman, who died in August 2023.

Harrods has established a redress scheme for former employees and says it has set aside more than £60 million ($81.9 million) for compensation. The retailer is now seeking to recover those costs from assets associated with Al Fayed’s estate.

Harrods faces hundreds of abuse claims

The allegations largely relate to Al Fayed’s tenure as the luxury department store owner and chairman between 1985 and 2010. More than 400 allegations involving sexual assault, rape and alleged forced medical testing have reportedly been brought to lawyers and the Metropolitan Police.

Several claims have come from former Harrods employees who allege that Al Fayed used his position and influence to target young women working for the company. One case involving Sophia Stone, now 58, has also drawn renewed attention in Scotland after a new witness reportedly came forward in support of her account of an alleged sexual assault.

Stone joined the leading department store at 19 and later worked as Al Fayed’s personal assistant. She reported her allegations to Police Scotland in 2021. Police Scotland said in 2024 that it had completed inquiries into a report of a non-recent sexual assault at Al Fayed’s Balnagown Estate. The force has since indicated that further investigation is ongoing.

Harrods launches $81.9 million redress scheme

Harrods has apologised to survivors who it says were failed during Al Fayed’s ownership and established a redress programme to resolve claims without requiring survivors to pursue lengthy legal proceedings. The scheme launched on March 31, 2025. Harrods said it had set aside more than £60 million ($81.9 million) to fund compensation and redress.

More than 180 survivors have reportedly engaged with the programme, with individual settlements reaching as much as £385,000 ($525,152), depending on factors including psychiatric assessments and damages.

The luxury store appointed Dame Jasvinder Sanghera as an Independent Survivor Advocate to provide support and an independent point of contact for survivors.

The retailer also instructed specialist lawyers at MPL Legal to handle claims arising from allegations against Al Fayed.

Harrods seeks costs from Estate

Although Harrods has established the compensation programme, the retailer is seeking to recover its costs from Al Fayed’s estate.

The company argues that the estate should ultimately bear financial responsibility for liabilities arising from allegations concerning its former owner.

Harrods is also seeking changes to the administration of the estate, including an attempt to remove Al Fayed’s widow as an executor.

The move could provide Harrods with greater access to information and assets relevant to its efforts to recover compensation costs.

The dispute has consequently placed the value and control of assets associated with Al Fayed’s estate under greater scrutiny.

Al Fayed estate faces growing scrutiny

The allegations extend beyond Harrods to properties associated with Al Fayed, including the Balnagown Estate in the Scottish Highlands. Al Fayed acquired the estate in 1972 and invested heavily in its restoration. Following his death in 2023, the property remained associated with his family and is understood to be held through an offshore trust for their benefit.

Police Scotland’s investigation into allegations connected to Balnagown has added another dimension to scrutiny of Al Fayed’s legacy. Harrods has stressed that the company operating today is fundamentally different from the organisation controlled by Al Fayed between 1985 and 2010.

The retailer has condemned the allegations, acknowledged failures during his ownership and maintained communication with the Metropolitan Police. Harrods has also said survivors can pursue claims against the company, the Al Fayed estate and, where appropriate, other companies associated with the late businessman.

The dispute therefore extends beyond individual compensation claims. It could determine whether millions already committed or paid by Harrods can ultimately be recovered from assets linked to Al Fayed’s estate.

As civil claims and police investigations continue, the central financial question is increasingly who will ultimately bear the cost of compensation linked to the allegations.