Debenhams deal slammed as 'paltry' by protesters

Staff members Erica O’Mahony, Madeline Whelan, Grace Hall, Valerie Conlon, Deirdre Power, Sarah Gleeson, Claire O’Leary, Gillian McSweeney, and Amanda Lyons protesting. File picture: Dan Linehan

A €1m plus deal has been negotiated between trade union Mandate and liquidator KPMG which they say could end the Debenhams dispute which has raged since April.

However, some protesters, who have blocked any removal of stock from the stores until they are paid two weeks redundancy per year of service by the company, have slammed the deal as “paltry” and said that “nothing has been resolved".

It is understood the deal hinges on selling off stock from two stores: one in Cork and Dublin, depending on landlord approval.

The liquidator would pay €500,000 into a pot for the approximately 1,000 former workers up front, followed by a further €500,000 after the stock has sold, former shop stewards said. Ex-employees would also be entitled to an additional 33.3% of any net profit from the stock sale and workers would be allowed to purchase stock first. 

Mandate said some of the workers will also be guaranteed employment as a new leaseholder may reopen at least three of the shuttered stores.

Full details of the finalised deal will be sent to the workers early next week ahead of a national information meeting and a subsequent ballot.

However, the deal has already met vocal opposition from the picket lines.

Valerie Conlon, who is picketing the Patrick St store in Cork, told the Irish Examiner: “It's a paltry deal. To put it into perspective, our two weeks statutory redundancy comes to between €10m and €11m. And they’re offering €1m. 

"Nothing’s been agreed, nothing’s been voted on, nothing's been resolved. I’m telling staff to vote ‘no’ on it."

Ms Conlon said that despite her vehement opposition to the deal, she is "a little concerned" that it could get voted through.

Gerry Light, Mandate general secretary praised staff for "the hard work and the sacrifices they have endured" on the picket and said resolving the dispute would be down to the unionised former Debenhams staff when they vote on the deal over the coming weeks. 

A spokesperson for KPMG said that "no settlement has yet been agreed" but that the liquidators have been in discussions with the unions over the last few weeks.

They said: "The Liquidators are incurring significant costs in the Liquidation due to the inability to peacefully vacate stores and realise the stock which is due to pickets and protests.

"The Liquidators’ view is that any settlement, should it be agreed, would be self-funding and in the interest of all Creditors as the costs being incurred due to the current situation are eroding value and return to the creditors.

"The liquidators hope to trade two stores subject to landlord consent to self finance a large part of the settlement.

"While significant progress has been made in discussions, there are a number of items that have yet to be resolved. The liquidators will continue to work with the unions and hope a settlement is possible."