Harrods seeks to recover abuse compensation costs from Mohamed Al Fayed’s estate

Exclusive: Survivors say luxury store’s attempt to recoup money is at odds with its public acceptance of responsibility

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 275 of the survivors it represents could reach up to £150m .