Debenhams dispute: Time running out as KPMG may quit process

Ex-Debenhams workers held a small rally outisde the Patrick Street, Cork. File picture: Andy Gibson

Money and time are running out fast in the Debenhams dispute as KPMG has indicated that it may walk away from the liquidation process by December 23, it is understood.

If the company's remaining assets are not sold off, or the sale is seriously delayed, the workers and all creditors — including the State — stand to lose money.

Talks at the Workplace Relations Commission between the liquidator, workers' union Mandate and shop stewards from the 11 former Debenhams stores collapsed on Friday.

Although KPMG offered to pay workers some money to lift the picket, it is understood that this figure was between €500,000 and €750,000 — significantly lower than the previously rejected offer of €1m plus one-third of the net profits of the sale of stock.

Gerry Light, general secretary of Mandate trade union, said: "Time is running out so the State must act immediately before the assets end up disappearing altogether.” 

Mr Light said that the WRC meeting revealed the "concerning" news that the current asset value of the liquidated Debenhams (Dril) business might be depleted by the end of this year. 

"This would largely come about through the increasing and additional expenses/costs that the liquidators will have to meet.

"If this reality does transpire it means not only will the ex-Debenhams workers lose out but the State will potentially forego many millions of euros that fall due as a preferential creditor," Mr Light said.

It is understood that the State may be owed approximately €20m in taxes from the collapsed retailer.

Solidarity TD Mick Barry said: "The threat to leave the stock in the stores and walk away from this liquidation process threatens the State with the loss of up to €20m. This is a new element in this dispute — now it is not just the workers but the State itself which is being threatened with being short-changed. 

 “I’m sure that I will be joined by many other TDs in the Dáil this week in demanding that the Government actively intervene now and put money on the table to resolve the Debenhams dispute."